Authorize Execution of Agreement with Letco Group, LLC d/b/a Living Earth, for Biofilter Media in an Annual Amount Up to $236,000.00 and Authorize Five Renewal Options for the Water Department (COUNCIL DISTRICT 5)

It is recommended that the City Council authorize the execution of an Agreement with Letco Group, LLC d/b/a Living Earth, for Biofilter Media in an annual amount up to $236,000.00 and authorize five renewal options for the Water Department.

The Water Department approached the Purchasing Division to establish an annual Agreement for the purchase of biofilter media on an as-needed basis.  The material will be used to replace original filter media in various odor control biofilters located at Village Creek Water Reclamation Facility.  Staff issued an Invitation to Bid (ITB) to 55 related vendors.  The ITB included detailed specifications describing the organic materials, installation, delivery, and safety requirements. The ITB was advertised in the Fort Worth Star-Telegram on April 18, 2018, April 25, 2018 and May 2, 2018.  The City received one bid.  See attached Bid Tabulation.

Staff recommends awarding contract to The Letco Group, LLC d/b/a Living Earth, with five options to renew.  No guarantee was made regarding the amount of these items that would be purchased. The ITB amount for the departments' annual requirements is $236,000.00. The proposed contract would allow the unit price to be increased so long as the City approves the increase.  In addition, 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.

The Water Department reviewed the pricing and found pricing to be fair and reasonable.

M/WBE - A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

This Agreement shall begin on the date in Purchase Order (Effective Date) and shall expire on upcoming Sept 30th, (Expiration Date), unless terminated earlier, in accordance with this Agreement (Initial Term). Upon the expiration of the Initial Term, the Agreement shall renew automatically under the same terms and conditions for up to five one year renewal periods (October 1to September 30) and for a fifth renewal period which shall expire on completion of five year duration, unless City or Vendor provides the other party with notice of non-renewal at least 60 days before the expiration of the Initial Term or renewal period. However, if funds are not appropriated, the City may cancel the Agreement 30 calendar days after providing written notification to the Contractor/Vendor.