The Water Department and Property Management Department will use this Agreement to purchase parts to repair and maintain heating, ventilation and cooling units (HVAC) throughout the City and to purchase new units as required. The City executed a Purchase Agreement with Carrier Enterprise, LLC, (Carrier) on December 1, 2018, in an amount up to $100,000.00 using BuyBoard Contract No. 577-18. However, because the departments have additional requirements, the amendment to increase the spending authority with Carrier is necessary.
The majority of the HVAC units throughout the City are manufactured by Carrier. This amendment will allow the Property Management Department to quickly obtain parts for repair and units, if needed, with a minimum amount of delay and interruption to City services.
PRICE ANALYSIS - The parts and unit prices offered by Carrier are comparable to prices offered under the last Agreement awarded in 2015 using BuyBoard Contract No. 501-15.
No guarantee was made that a specific amount of parts or services would be required, however, the Water Department and Property Management Department estimate an average of $500,000.00 annually for these parts and units during the first year of this Agreement. Overall, prices being recommended for award are considered fair and reasonable. Vendor | Description | Cost | Total | Carrier Enterprises, LLC | Parts | List less 40 percent | $250,000.00 | Carrier Enterprises, LLC | Units | List less 40 percent | $250,000.00 | Total | - | - | $500,000.00 |
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 the purchase of the items. BuyBoard contracts are competitively bid to increase and simplify the purchasing power of government entities across the State of Texas. BuyBoard issued and awarded Contract No. 577-18 in December 2018.
AGREEMENT TERMS - Upon Council approval, the amendment increasing the spending authority will be effective upon execution by the parties. The original term of the Agreement will end November 30, 2019.
RENEWAL OPTIONS - The Agreement with Carrier may be renewed at the City's option for two additional one-year terms if BuyBoard renews its contract. Renewal of this Agreement by the City 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.
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