STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: September 25, 2019
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service price agreement for the maintenance and repair of fuel pumps, dispensing equipment, lines, and tanks - D&H United Fueling Solutions, Inc., lowest responsible bidder of three - Estimated amount of $3,686,735.50 - Financing: General Fund ($1,769,499.00), Equipment and Fleet Management Fund ($1,785,996.50), Dallas Water Utilities Fund ($51,290.00), and Sanitation Operation Fund ($79,950.00)
Body
BACKGROUND
This action does not encumber funds; the purpose of this service price agreement is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement. We anticipate the following City departments will use this agreement:
• Department of Sanitation Services
• Equipment and Fleet Management
• Fire-Rescue Department
• Park & Recreation Department
• Police Department
• Water Utilities
This service contract will provide maintenance and repair of the City's fuel pumps, dispensing equipment, lines, and tanks associated with above-ground and underground fuel storage tanks. The City's fueling sites include fifty-eight fire stations, eight service centers, the police heliport, auto pound, and numerous additional sites throughout the City.
This fuel dispensing equipment must be maintained in good working condition to ensure compliance with Texas Commission on Environmental Quality regulations and is subject to fines if it fails to pass annual inspections.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors. Additionally, in an effort to secure more competition, the Office of Business Diversity sent notifications to chambers of commerce and advocacy groups to ensure maximum vendor outreach.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The current calculated living wage during the solicitation process of this contract is $11.15; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 17, 2015, City Council authorized a three-year service contract for the maintenance and repair of fuel pumps, dispensing equipment, lines and fuel tanks with United Safeguard Pump Services, Ltd. dba United Pump Supply by Resolution No. 15-1129.
FISCAL INFORMATION
General Fund - $1,769,499.00 (Estimated amount)
Equipment and Fleet Management Fund - $1,785,996.50 (Estimated amount)
Dallas Water Utilities Fund - $51,290.00 (Estimated amount)
Sanitation Operation Fund - $79,950.00 (Estimated amount)
|
Fund |
FY 2018-19 |
FY 2019-20 |
FY 2020-21 |
FY 2021-22 |
|
General Fund |
$ 2,459.00 |
$ 591,379.32 |
$ 591,379.34 |
$ 584,281.34 |
|
Equipment and Fleet Management Fund |
$ 99,222.00 |
$ 595,332.00 |
$ 595,332.00 |
$ 496,110.50 |
|
Dallas Water Utilities Fund |
$ 1,424.71 |
$ 17,096.58 |
$ 17,096.58 |
$ 15,672.13 |
|
Sanitation Operation Fund |
$ 0.00 |
$ 28,650.00 |
$ 26,650.00 |
$ 24,650.00 |
|
Total |
$103,105.71 |
$1,232,457.90 |
$1,230,457.92 |
$1,120,713.97 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Plan adopted on October 22, 2008, by Resolution No. 08-2826, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$3,686,735.50 |
Other Services |
23.80% |
0.00% |
$0.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BA1905. We opened them on May 31, 2019. We recommend the City Council award this service price agreement in its entirety to the lowest responsible bidder.
*Denotes successful bidder
Bidders Address Amount
*D&H Fueling Solutions, 12100 Crownpoint Drive $3,686.735.50
Inc. Suite 110
San Antonio, TX 78233
Petroleum Solutions, 3702 South Expressway 281 $4,558,958.00
Inc. Edinburg, TX 78542
Wavetron Enterprise 14241 Dallas Parkway Non-responsive**
Suite 650
Arlington, TX 75254
**Wavetron Enterprise was deemed non-responsive due to not meeting bid specifications.
OWNER
D&H Fueling Solutions, Inc.
Bolling H. Sasnett, III, President
Preston Moister, Vice President