STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: January 25, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a five-year service price agreement for industrial, commercial, and institutional water assessments for the Office of Environmental Quality and Sustainability - Alan Plummer and Associates, Inc. dba Plummer Associates, Inc., only bidder - Estimated amount of $971,220 - Financing: General 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 industrial, commercial, and institutional (ICI) water assessments for the Office of Environmental Quality and Sustainability. ICI water consumption audits assist customers by helping them identify potential water savings throughout their facilities. ICI water consumption audits are included as a water conservation strategy in the City's 2016 water conservation five-year work plan (Plan).
The Plan targets a reduction in gallons per capita per day by an average 1.0 percent per year. A major emphasis has been placed on efforts to aid ICI customers realize their full potential for water savings and increased efficiency. To that end, professional water assessments are offered free of charge to the ICI water customers. These customers represent approximately 59 percent of all retail water use. The City's goal is to have the awarded contractor perform approximately 150 building assessments annually. The contract also provides for follow-up inspections and verification of completed water conservation rebate projects.
The rebate will serve to complement and enhance the ICI assessment initiative. By providing financial incentives that encourage large ICI water users to install new water efficient equipment, the City will help lower the cost of water efficiency investments and accelerate large volumes of water savings among high water-using customers.
In the last five years, the program has performed approximately 769 building water assessments for 69 ICI customers and has awarded 12 rebates with average water savings of approximately 73 million gallons per year.
Customers participating in the ICI Rebate Program will be required to sign an agreement with the City that specifies the rebate amount, installation deadline, and other conditions to ensure that the expected water savings are achieved and maintained after the rebate has been paid. The rebate for each project shall be the lesser of half the combined cost of the purchase price of the equipment and the cost of the contracted labor to install the equipment, or the amount determined by calculating total savings in thousand gallons increments over the life of the project and multiplying that amount by the allowable cost per 1,000 gallons of water saved. The allowable cost per 1,000 gallons of water saved may be adjusted annually depending upon the true cost of regional water supplies. The maximum rebate for any given project is $100,000. Rebates for more than $25,000 require approval from the City Council.
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)
On November 8, 2017, City Council authorized a five-year service contract for a water consumption rebate program for industrial, commercial, and institutional facilities with Alan Plummer and Associates, Inc. by Resolution No. 17-1742.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
General Fund |
$218,000.00 |
$218,000.00 |
$535,220.00 |
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 |
|
$971,220.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
15.00% |
15.00% |
$145,683.00 |
|
• The Business inclusion and Development Policy does not apply to Other Service contracts, however the prime contractor is subcontracting with certified M/WBEs. |
|
• Alan Plummer and Associates, Inc. dba Plummer Associates, Inc. - Local; Workforce - 47.62% 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 bid from solicitation number BAZ22-00020441. We opened it on October 21, 2022. We recommend the City Council award this service price agreement in its entirety to the only bidder.
Bidder Address Amount
Alan Plummer and 1320 South University Drive $971,220
Associates, Inc. dba 300
Plummer Associates, Inc. Fort Worth, TX 76107
Note: The Office of Procurement Services conducted a single bid review and found no exceptions.
OWNER
Alan Plummer and Associates, Inc. dba Plummer Associates, Inc.
Chris Young, President
Dean Gratz, Chief Financial Officer