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HomeMy WebLinkAboutIR 9033r INFORMAL REPORT TO CITY COUNCIL MEMBERS I A To the Mayor and Members of the City Council No. 9033 Page 1 of 2 Date: April 7, 2009 SUBJECT: SELECTION OF THE PROCUREMENT METHOD FOR GOODS AND SERVICES In today's packet is a draft resolution to authorize the City Manager, or his designee, to approve the use of competitive sealed proposals to acquire goods and services when using such a method presents the best value to the City of Fort Worth. The competitive sealed proposals process is also known as the request for proposals process or "RFP" process. Prior to the previous legislative session in 2007, municipalities were only allowed to use RFPs to acquire technology, insurance, or other services exempt from public bidding such as professional services. All other goods and service requests valued over $25,000.00 had to be fulfilled using the competitive sealed bid process (i.e., the lowest bid meeting or exceeding specifications, or the best value bid process). In 2007, House Bill 3517 modified section 252.021 of the Texas Local Government Code to allow the use of RFPs for all goods and services where the use of an RFP presented the best value to the municipality with approval of the governing body prior to issuance of such RFPs. RFPs allow various proposal factors in addition to price, such as performance, quality, and supplier reputation to be evaluated. In addition, under an RFP process, final contract pricing and scope of work or specifications may be negotiated. Price and specifications cannot be negotiated under the competitive sealed bid process. The ability to negotiate a final contract presents a better value to the City in some situations such as complex equipment and technology procurements as well as some service contracts. Without this delegation of authority, RFP processes that normally take approximately three months will require an additional month to obtain City Council approval due to the approval and notice requirements needed to have an action added to the City Council agenda. Delegating this authority to the City Manager, or his designee, will expedite the RFP process and allow the City to use the RFP process where it presents the best value to the City. The City Council will retain the authority to approve all purchases and contracts valued over $25,000.00. We have not requested this delegation until now because we have not seen many situations where an RFP presents a better value than the competitive sealed bid process. However, an opportunity has presented itself and we would like to pursue the opportunity to possibly reduce our costs in the area of aircraft and vehicle fuels as well as generate some revenue for the City. The first RFP for which we request to use this authority is a cooperative fuel supply contract (including aviation fuel, diesel fuel and unleaded gasoline), which would be issued in partnership ith the National Intergovernmental Purchasing Alliance (National IPA). National IPA intends to make the resulting contract available to pubic entities all across the United States on a ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS a INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council No. 9033 Page 2of 2 Date: April 7, 2009 SUBJECT: SELECTION OF THE PROCUREMENT METHOD FOR GOODS AND SERVICES cooperative purchasing basis. Due to the national scope of the contract, an RFP will present the best value to the City through the ability to negotiate the best supply arrangements and pricing structures. When other entities make purchases using the cooperative contract, the suppliers pay an administrative fee to National IPA and part of that fee would be rebated back to the City. The rebate to the City could reach $250,000.00 per year if the anticipated national volume reaches the current estimated quantity of 110,000,000.00 gallons of these fuels. Without this resolution and delegation of authority to select RFPs when they present the best value strategy, we will have to seek prior City Council approval to use an RFP for anything other than professional services on a case by case basis; adding another four weeks to the usual three month process. If the City Council is not prepared to approve this delegation of authority we would like present an alternate resolution requesting City Council approval to issue this pooperative fuel supply contract solicitation as a request for proposals. If you have any questions regarding this information, please contact Jack Dale, Purchasing Manager, at (817) 392 -8357 or Lena Ellis, Financial Management Services Director /CFO, at (817) 392 -8517. Da a A. Fissel , E. City Manager ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS r A Resolution DRAFT im RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO SELECT THE PROCUREMENT METHOD FOR GOODS AND SERVICES THAT WILL PROVIDE THE BEST VALUE FOR THE CITY OF FORT WORTH WHEREAS, State purchasing laws authorize municipalities to utilize the competitive sealed bidding process to procure goods and services; and WHEREAS, During the 80`h Texas Legislative Session, in addition to the competitive sealed bidding process, the purchasing laws were modified to allow municipalities, upon approval from their governing bodies, to utilize the competitive sealed proposal process for the purchase of goods and services, including high technology and insurance purchases; and WHEREAS, The City Council of the City of Fort Worth desires to utilize the competitive sealed proposal process where it will provide the best value to the City by allowing consideration of various factors, in addition to price; and WHEREAS, Texas Local Government Code, Subchapter B, Section 252.021, paragraph (c) and Subchapter H, Section 271.114, paragraph (a) authorize the governing body of a municipality to delegate its authority under these provisions to a designated representative for the purpose of selecting the procurement method that will provide the best value for the municipality; and WHEREAS, In order to expedite the competitive sealed proposal process, the City Council of the City of Fort Worth desires to authorize the City Manager to select the procurement method for the purchase of goods and services that will provide the best value for the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That the City Manager, or his designee, is authorized to select the procurement method for goods and services from those methods authorized by state statute that will provide the best value for the City of Fort Worth. UM N �r 0 Adopted this 14`h day of April 2009. ATTEST: Marty Hendrix, City Secretary Kum -"s-