STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: January 11, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a five-year service price agreement for hot water and steam boilers maintenance and parts for the Water Utilities Department - Denali Construction Services, most advantageous proposer of three - Estimated amount of $137,755 - Financing: Dallas Water Utilities Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a 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.
This service price agreement will provide for hot water and steam boilers maintenance and parts for the Water Utilities Department. The processing of the residuals at the wastewater treatment plant involves maintaining the temperature at a minimum of 95 degrees Fahrenheit. In order to operate the residual equipment at their optimum performance, the boilers must maintain the internal temperature at a range of 95 to 98 degrees, 24 hours a day. Additionally, the boilers are also used to provide heat for the various offices and process buildings at the wastewater treatment plant. This service price agreement will ensure the equipment will remain operational at an optimum level.
A four-member committee from the following departments reviewed and evaluated the qualifications:
• Building Services Department (1)
• Department of Equipment Fleet Management (1)
• Water Utilities Department (1)
• Office of Procurement Services (1)*
*The Office of Procurement Services evaluated cost and local preference, if applicable.
The committee selected the successful respondent on the basis of demonstrated competence and qualifications under the following criteria:
• Capabilities and experience 35 points
• Approach 30 points
• Cost 30 points
• Local Preference 5 points
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.
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 calculated living wage during the solicitation process of this contract is $17.82; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
Dallas Water Utilities Fund |
$20,663.00 |
$27,551.00 |
$89,541.00 |
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 |
|
$137,755.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
100.00% |
$137,755.00 |
|
• The Business Inclusion and Development Policy does not apply to Other Service contracts. However, the prime contractor is a certified WBE. |
|
• Denali Construction Services - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BV21-00016674. We opened them on December 17, 2021. We recommend the City Council award this service price agreement in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*Denali Construction Services 1707 Briercroft Court #100 76.06
Carrollton, TX 75006
RushCo Energy Specialist 10765 Tube Drive 69.67
Hurst, TX 76053
Techno Mechanical Solutions 3315 Hidalgo Loop 46.67
LLC Round Rock, TX 78665
OWNER
Denali Construction Services
Michelle Thrailkill, Chief Executive Officer
Rik Thrailkill, Vice President