STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: March 25, 2020
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for industrial, medical, and welding gases - Airgas USA LLC, only bidder - Estimated amount of $902,819.62 - Financing: General Fund ($355,198.42), Dallas Water Utilities Fund ($532,510.11), Sanitation Operation Fund ($13,260.66), and Aviation Fund ($1,850.43)
Body
BACKGROUND
This action does not encumber funds; the purpose of a master agreement is to establish firm pricing for goods, 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:
• Building Services Department
• Department of Animal Services
• Department of Aviation
• Department of Public Works
• Department of Sanitation Services
• Fire-Rescue Department
• Park & Recreation Department
• Police Department
• Water Utilities Department
This master agreement will provide industrial, medical, and welding gases that are utilized citywide. This agreement provides industrial medical gases used by the Fire-Rescue Department to be readily available in Fire-Rescue units and HazMat units for medical emergencies and calibration for HazMat sensors. Gases are used to provide medical grade oxygen for the animal surgery clinics. Gases such as nitrogen, helium and carbon monoxide are for the operation and calibration of laboratory instrumentation and personnel safety sensors.
Welding gases are utilized by various City departments to cut, weld, and fabricate metal used in the repair of equipment and infrastructure. The work accomplished with these gases includes the repairs to City vehicles, heavy equipment, and metal structures; such as safety hand railing, security fencing, traffic signals, plumbing, heating, ventilation and air conditioning, playground equipment, and electrical boxes at lighted ball diamonds.
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 65 email bid notifications to vendors registered under respective commodities. 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 by phone. Additionally, in an effort to secure more bids, the Office of Business Diversity sent notifications to chambers of commerce and advocacy groups to ensure maximum vendor outreach.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2019-20 |
FY 2020-21 |
Future Years |
|
General Fund |
$111,917.76 |
$117,503.89 |
$125,776.77 |
|
Dallas Water Utilities Fund |
$144,003.96 |
$194,253.06 |
$194,253.09 |
|
Sanitation Operation Fund |
$ 4000.00 |
$ 4,000.00 |
$ 5,260.66 |
|
Aviation Fund |
$ 616.81 |
$ 616.81 |
$ 616.81 |
|
Total |
$260,538.53 |
$316,373.76 |
$325,907.33 |
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 $ |
|
$902,819.62 |
Goods |
N/A |
N/A |
N/A |
|
• M/WBE goal waived due to no M/WBE availability |
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 bid from solicitation number BN19-00010656. We opened it on August 23, 2019. We recommend the City Council award this master agreement in its entirety to the only bidder.
Bidder Address Amount
Airgas USA LLC 801 West Carrier Parkway $902,819.62
Grand Prairie, TX 75050
Note: The Office of Procurement Services conducted a single bid review and found no exceptions.
OWNER
Airgas USA LLC
Chris Ryan, President
Bill Ziots, Vice President