TITLE
Consider a memorandum/resolution awarding Bid No. 19-04 for a Water and Sewer supply items purchase agreement with ACT Pipe and Supply, Ferguson Waterworks, and Zenner USA.
SUMMARY
DATE: December 4, 2018
TO: Ronald L. Olson, City Manager
FROM: David A. Olson, Executive Director of Public Works
SUBJECT: Authorize the Award of BID 19-04 - Water and Sewer Supply Items
BACKGROUND AND FINDINGS:
Notice was advertised Sunday October 28, 2018, and Sunday November 4, 2018, in the Killeen Daily Herald that the City of Killeen will receive sealed bids for the annual contract for water and sewer supply items. These items are used by the Water & Sewer Division of Public Works throughout the year to operate and maintain the water distribution system and sanitary sewer collection system. On Wednesday, November 14, 2018 at 3:15 p.m. bids were opened and read aloud on the 2nd floor RM# 215 at Building E 802 N. 2nd Street Killeen, Texas 76541.
|
Bidders |
Total Price |
|
ACT Pipe and Supply |
455,093.50 |
|
Ferguson Waterworks |
623,046.00 |
|
Zenner Performance Meters, Inc. |
132,974.25 partial bid |
|
Thirkettle Corp dba Aqua Metrics Sales Co |
139,139.00 partial bid |
Bid 19-04 tabulation contains an itemized list of all supply items with the corresponding bid submissions received per vendor. Johnson Supply Company whom previously bid on 19-04 Water and Sewer Supply Items retracted their bid as of November 19, 2018.
THE ALTERNATIVES CONSIDERED:
1. Purchasing agent can request for individual orders per item, cost and quantity under $3,000.00.
2. Purchasing agent is required to request for multiple quotes per orders totaling over $3,000.00 - $49,999. Requiring a 3 Quote process and Purchase Order to be generated per requirements by the State of Texas.
3. Award a purchase agreement for the FY 2019-2020 under BID 19-04 Water and Sewer Supply Item in the estimated amount $250,000.00 to approve vendors per individual item, quantity, unit cost and extended price.
Which alternative is recommended? Why?
Alternative 3 is recommended because:
1. This alleviates the need for individual orders or multiple quotes for each purchase request under/over $3,000.00 on items required to maintain City of Killeen Water Distribution Lines and Customer Services.
2. Locks in price per unit cost and extended prices, saving the City of Killeen from possible increased item costs throughout FY 2019-2020 based on market fluctuation.
CONFORMITY TO CITY POLICY:
Authorizing Purchase Agreements between The City of Killeen and ACT Pipe and Supply, Ferguson Waterworks, Zenner USA per BID 19-04 Water and Sewer Supply Items, conforms to all State and City purchasing policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The expenditure amount for the warehouse supply items is approximately $250,000.00 and will be charged to 550-0000-120.09-00, 550-3410-436.60-65, 550-3410-436.60-75, 550-3410-436.60-70. This amount of expenditure is available in fiscal year 2019 and 2020.
Is this expenditure budgeted? If not, where will the money come from?
This expenditure is budgeted.
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes, there is a sufficient amount in the budgeted line-item for this expenditure.
RECOMMENDATION:
Staff recommends that the following vendors are awarded the corresponding bids and that the City Manager is expressly authorized to execute any and all changes within the amounts set by state and local law.
Section 1
Items 1-2: Ferguson Waterworks is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to Ferguson Waterworks.
Items 3-10: ACT Pipe and Supply is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to ACT Pipe and Supply.
Section 2
Items 1-3: Zenner Perfomance Meters, Inc. is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to Zenner Performance Meters, Inc.
Item 4: Ferguson Waterworks is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to Ferguson Waterworks.
Item 5: ACT Pipe and Supply is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to ACT Pipe and Supply.
Section 3
Items 1-19: ACT Pipe and Supply is the lowest bidder on these items. They met all bid requirements. Staff recommends that these items be awarded to ACT Pipe and Supply.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Bid Tab Sheet
Certificate of Interested Parties