STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: December 14, 2022
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a five-year master agreement for the purchase of oil, grease, and lubricants for citywide use - Atlantic Petroleum & Mineral Resources, Inc. in the estimated amount of $6,693,894.28, W. Douglass Distributing, LTD in the estimated amount of $6,059,174.26, Western Marketing, Inc. in the estimated amount of $429,779.62, Texas Pride Fuels, Ltd. in the estimated amount of $405,125.60, NCH Corporation dba Certified Laboratories Division in the estimated amount of $238,431.32, MHC Kenworth South Dallas in the estimated amount of $162,813.06, and Schaffer Manufacturing Co. in the estimated amount of $7,125.24 , lowest responsible bidders of seven - Total estimated amount of $13,996,343.38 - Financing: General Fund ($3,526,017.63), Equipment and Fleet Management Fund ($3,241,271.55), Dallas Water Utilities Fund ($3,151,516.27), Sanitation Operation Fund ($2,678,309.05), and Stormwater Drainage Management Operations Fund ($1,399,228.88)
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.
This master agreement will provide for the purchase of oil, grease, and lubricants for citywide use. These products are used for the maintenance and repair of various types of equipment (gearboxes, pumps, compressors, motors, non-vehicle engines, etc.). The products will also be used to maintain vehicles used by departments such as Equipment and Fleet Management, Fire-Rescue, Water Utilities (DWU), Park & Recreation, and Sanitation Services. Specialty oil, grease, and lubricants have extensive applications and is often used for such as stationary equipment, transformers, and generators which are used by DWU.
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.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 12, 2018, City Council authorized a three-year master agreement for oil, grease, and lubricants for citywide use with Western Marketing, Inc., NCH Corporation dba Certified Laboratories, and Schaeffer Manufacturing Company by Resolution No. 18-1811.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
General Fund |
$ 204,363.72 |
$ 794,363.72 |
$2,527,290.19 |
|
Equipment and Fleet Management Fund |
$ 648,254.29 |
$ 648,254.32 |
$1,944,762.94 |
|
Dallas Water Utilities Fund |
$ 563,887.85 |
$ 652,353.06 |
$1,935,275.36 |
|
Sanitation Operation Fund |
$ 535,661.81 |
$ 535,661.81 |
$1,606,985.43 |
|
Stormwater Drainage Management Operations Fund |
$ 12,000.00 |
$ 359,557.22 |
$1,027,671.66 |
|
Total |
$1,964,167.67 |
$2,990,190.13 |
$9,041,985.58 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$13,996,343.38 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
0.00% $0.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• Atlantic Petroleum & Mineral Resources, Inc. - Non-local; Workforce -100.00% Local • Douglass Distributing, LTD - Non-local; Workforce -0.00% Local • Western Marketing, Inc. - Non-local; Workforce -100.00% Local • Texas Pride Fuels, Ltd. - Non-local; Workforce -100.00% Local • NCH Corporation dba Certified Laboratories Division - Local; Workforce -7.06% Local • MHC Kenworth South Dallas - Local; Workforce -25.99% Local • Schaeffer Manufacturing Company - Non-local; Workforce -0.00% Local |
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 BA22-00020103. We opened them on September 30, 2022. We recommend the City Council award this master agreement to the lowest responsive and responsible bidders by line. Information related to this solicitation is available upon request.
*Denotes successful bidders
Bidder Address Amount
*Atlantic Petroleum 1445 North Loop West Multiple lines
& Mineral Resources, Inc. Houston, TX 77008
*W. Douglass Distributing, LTD 325 East Forest Ave. Multiple lines
Sherman, TX 75090
*Western Marketing, Inc. 816 South Blue Mound Rd. Multiple lines
Fort Worth, TX 76131
*Texas Pride Fuels, Ltd. 1300 Highway 199 E. Multiple lines
Springtown, TX 76082
*NCH Corporation dba 2727 Chemsearch Blvd. Multiple lines
Certified Laboratories Division Irving, TX 75062
*MHC Kenworth 4040 Irving Blvd. Multiple lines
South Dallas Dallas, TX 75247
*Schaeffer Manufacturing Co. 102 Barton St. Multiple lines
St. Louis, MO 63104
OWNERS
Atlantic Petroleum & Mineral Resources, Inc.
Anthony Ndah, President
W. Douglass Distributing, LTD
Brad Douglass, Owner
Western Marketing, Inc.
Dustin McClintock, Vice President
Texas Pride Fuels, Ltd.
Dan Hale, Owner
NCH Corporation dba Certified Laboratories Division
Jim Rogers, President
MHC Kenworth South Dallas
Tim Murphy, Chairman
Mike Murphy, Chief Executive Officer
Schaeffer Manufacturing Company
Larry Hofstetter, President
Dennis McCarthy, Chief Financial Officer