City Departments will use this Purchase Agreement to purchase original equipment manufacturer (OEM) Trane heating, ventilation and air conditioning (HVAC) equipment, parts, installation and repair from Trane using Texas Association of School Boards (BuyBoard) Cooperative Contract No. 552-17 on an as-needed basis.
The Water Department requested that Purchasing staff assist in procuring a new contract for the purchase of OEM Trane HVAC equipment, parts, installation and repair. Purchasing staff solicited quotes from four Cooperatives. The quotes are as follows:
BuyBoard Contract 552-17
Equipment and parts - 35 to 45 percent discount off list price
Installation and repair labor hourly rate - $139.00/hour
US Communities Contract 15-JLP-023
Equipment and parts – 38 percent discount off list price
Installation and repair labor hourly rate – available upon request
General Services Administration Contract GS-07F-0248K
Equipment and parts – 36 percent to 38 percent discount off list price
Installation and repair labor hourly rate – $153.84/hour
National Intergovernmental Purchasing Alliance/TCPN Contract R150502
Equipment and parts – 43 percent to 95 percent discount off list price
Installation and repair labor hourly rate – N/A
Purchasing staff has reviewed the quotes and recommends awarding an Agreement to Trane under BuyBoard Contract No. 552-17 which expires on November 30, 2020.
COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a cooperative Purchasing Agreement satisfies any state law requiring that the local government seek competitive bids for purchase of the item. BuyBoard Contracts are competitively bid to increase and simplify the purchasing power of government entities across the State of Texas.
M/WBE OFFICE - A MBE/SBE goal is not assigned when purchasing from an approved purchasing cooperative or public entity.
SUCCESSOR CONTRACTS - To facilitate planning and budgeting Staff would prefer to have annual Agreements that align with the Fiscal Year. However, the BuyBoard Agreement is out of alignment with the City's Fiscal Year and its current term will expire November 30, 2020. In order for this purchase to align with the City's Fiscal Year, adoption of this Mayor and Council Communication (M&C) technically authorizes (i) a series of purchase Agreements, each of which will align to a term of the BuyBoard Agreement to ensure legal authority exists for the contract, and (ii) an annual spend amount, future years of which would be subject to City Council appropriation. In the event the BuyBoard Agreement is not renewed, Staff would cease purchasing at the end of the last Purchase Agreement coinciding with a valid BuyBoard Agreement. If the City Council were to not appropriate funds for a future year, Staff would stop making purchases when the last appropriation expires, regardless of whether the then-current Purchase Agreement has expired. 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 City will initially use BuyBoard Contract No. 552-17 to make purchases authorized by this M&C. As noted, that Agreement is set to expire on November 30, 2020. If BuyBoard Contract No. 552-17 is extended, this M&C authorizes the City to purchase similar equipment, supplies and service under the extended contract. If BuyBoard Contract No. 552-17 is not extended but BuyBoard executes a new cooperative contract with Trane, and with substantially similar terms as BuyBoard Contract No. 552-17, this M&C authorizes the City to purchase the equipment, supplies and service under the new BuyBoard contract.
AGREEMENT TERM - Upon City Council's approval, this Agreement will commence upon execution by both parties and continue in accordance with the terms and conditions of BuyBoard Contract No. 552-17 or applicable successive BuyBoard contracts for the same equipment, supplies and services.
RENEWAL OPTIONS - This Agreement may be renewed for up to one additional one-year term 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. Staff anticipates the cost for renewal years will be the same as for the first year.