STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: March 8, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for the purchase of asphalt emulsion for the Department of Public Works - Ergon Asphalt & Emulsions, Inc. in the amount of $1,243,200.00 and P Squared Emulsion Plants, LLC in the amount of $341,600.00, lowest responsible bidders of two - Total not to exceed $1,584,800.00 - Financing: General Fund
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.
This master agreement will provide for asphalt emulsion for the Public Works Department. The agreement will allow for the purchase of asphalt emulsion to be utilized in the repair of streets and alleys throughout the City. The asphalt emulsion is a binding agent used to adhere asphaltic material to a surface. Asphalt emulsion is used in the repair process of potholes, full-depth repairs, street rehabilitation projects, and street restoration projects. Asphalt emulsion is used in the repair of approximately 400 lane miles of asphalt streets and alleys each year.
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 September 13, 2017, City Council authorized a two-year master agreement for asphalt emulsion to be utilized by Mobility and Street Services with Ergon Asphalt & Emulsions, Inc. by Resolution No. 17-1397.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
General Fund |
$500,000 |
$500,000 |
$584,800 |
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 |
|
$1,584,800.00 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
$0.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• Ergon Asphalt & Emulsions, Inc.- Non-local; Workforce - 0.00% Local • P Squared Emulsion Plants, LLC - 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 bid from solicitation number BO23-00020681. We opened them on December 2, 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
Bidders Address Amount
*Ergon Asphalt & Emulsions, 11612 RM 2244 Multiple Lines
Inc. Building 1, Suite 250
Austin, TX 78738
*P Squared Emulsion Plants, 516 South McLennan Loop Elm Multiple Lines
LLC Mott, TX 76640
OWNERS
Ergon Asphalt & Emulsions, Inc.
Kris Patrick, President
P Squared Emulsion Plants, LLC
Dane McGinnis, Partner