From
Angi Mize
Title
Resolution determining local preference and price agreement for rebar and concrete steel supplies from Fabco, LLC (up to $35,898.40 annually) for one year with the option to renew for four additional one year periods totaling $179,492 if all extensions are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Bryce Davis
Recommended Action
Approve
Analysis
This is an annual agreement for the purchase of rebar and concrete steel supplies to be used by the Public Works - Street Division for various projects throughout the City.
Notice of bid #18017 was advertised and viewed by 14 vendors. There was one Grand Prairie vendors available for this commodity. Three bids were received as shown on attachment A.
The bid from Fabco, LLC meets all specifications and is recommended using the 5% local preference allowed under section 271.9051 of the Texas Local Government Code. This section allows for the consideration of location of bidder’s principal place of business in awarding the bid if the bidder whose principal place of business is in the municipality and their bid is within five percent of the lowest bid price received. The municipality may enter into a contract with (1) the lowest bidder; or (2) the bidder whose principal place of business is in the municipality if the governing body of the municipality determines, in writing, that the local bidder offers the municipality the best combination of contract price and additional economic development opportunities for the municipality created by the contract award, including the employment of residents of the municipality and increased tax revenues to the municipality.
Fabco, LLC was established in 2014 and has 50 employees at their Grand Prairie facility, 15 of which reside in Grand Prairie. Their taxable sales equal approximately $13,248,964.00. The City collected $264,983.00 in sales tax from Fabco, LLC in 2016.
Financial Consideration
Funds are available in FY 2017/2018 General Fund Budget 251210-63030 for PW Street Maintenance/Streets, Roads, & Highway Maintenance and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, DETERMINING THAT LOCAL PREFERENCE PROVIDE THE BEST COMBINATION OF CONTRACT PRICE AND ADDITIONAL ECONOMIC DEVELOPMENT OPPORTUNITIES IN ACCORDANCE WITH SECTION 271.9051(b)(2) OF THE TEXAS LOCAL GOVERNMENT CODE, FOR THE PURCHASE OF REBAR & CONCRETE STEEL SUPPLIES FROM FABCO, LLC
Whereas, Texas State law 271.905 allows for an award to a bidder whose principal place of business is in the municipality if the governing body of the municipality, in writing, that the local bidder offers the municipality the best combination of contract price and additional economic development opportunities for the municipality created by the contract award, including the employment of residents of the municipality and increased tax revenues to the municipality; and
Whereas, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and
Whereas, the City has determined that Fabco, LLC is a local bidder(s) whose principle place of business is within the City of Grand Prairie; and
Whereas, the City has determined that Fabco, LLC bid price is within the allowed 5% of the low bidder; and
Whereas, the City Council has determined that Fabco, LLC offers the best combination of contract price and additional economic development opportunities for contracts to purchase rebar & concrete steel supplies in accordance with Section 271.905 (b) (2).
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. the City Council of the City of Grand Prairie, Texas, determines that the Grand Prairie vendor(s) offer the best combination of contract price and additional economic development opportunities for the city by the contract awards, including the employment of residents of the city and increased tax revenues to the city.
Section 2. the award(s) for purchase of rebar & concrete steel supplies from Fabco, LLC is hereby approved.
Section 3. the City Manager is authorized to execute contracts and purchase orders, hereby approved on behalf of the City.
Section 4. this resolution shall be in full force and effect from and after its passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, THIS 12th DAY OF DECEMBER, 2017.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ________________, 2017.