It is recommended that the City Council authorize non-exclusive Purchase Agreements for electrical supplies with AWC, Inc., Dealers Electrical Supply Co., Rexel, Inc., Elliott Electric Supply, Inc., Graybar Electric Company, Inc., CED Miller Electric Supply, Summit Electric Supply, Inc., The Reynolds Company, General Supply & Services, Inc. d/b/a Gexpro, and Crawford Electric Supply Company, Inc., for all City Departments for a combined amount up to $2,000,000.00 for the first year.

City departments will use these non-exclusive Purchase Agreements to purchase electrical supplies to update and maintain city owned property.

The Invitation to Bid consisted of detailed specifications indicating types and brands of electrical supplies the City may purchase, stocking requirements, and experience required. No guarantee was made that a specific amount of goods would be purchased. Last year the City spent approximately $1,143,000.00 on electrical supplies.

Each bidder offered a categorical discount off the 3rd Column Trade Services Catalog, which is a nationally recognized pricing guide for a variety of electrical and other trade supplies for the manufacturers they represent.  Bidders were also requested to provide a mark-up percentage over their costs for Non-Trade Service electrical items and an across the board discount for Trade Service categories not listed in the bid. Since every vendor does not represent every manufacturer, Staff recommends non-exclusive awards to ensure the main manufactured brands are represented. User departments will purchase items based on greatest discount offered for that manufactured item and availability.

BID ADVERTISEMENT - The bid was advertised in the Fort Worth Star-Telegram on March 9, 2016, March 16, 2016, March 23, 2016, and March 30, 2016.  Seventy-four vendors from the purchasing system were issued bid invitations; ten vendors submitted bid responses.

BID TABULATION - See attached bid tabulation.

PRICING ANALYSIS - Staff compared current discount percentages with the offered discount percentages on nine categories. The average discount percent is approximately five percent lower than the average discount the City currently receives. The individual categorical discounts bid range from 25 percent lower to 23 percent higher than current discounts. The mark-up percentages offered for Non-Trade Service items range from 10 percent to 15 percent, and the across-the-board discounts for Trade Service categories not listed range between 10 percent to 55 percent. Staff determined these percentages are fair and reasonable. The current Agreements were awarded on January 10, 2012 (M&C P-11335).

ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00, and does not require specific City Council approval as long as sufficient funds have been appropriated.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible..

AGREEMENT TERMS - Upon City Council's approval, these Agreements shall begin June 29, 2016 and end June 28, 2017.  

RENEWAL OPTIONS - These Agreements may be renewed for up to four additional one-year terms at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.