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Home My WebLink AboutContract 59399-R1Docusign Envelope ID: B70540FE-5231-4C2A-89F3-37383D1CD021 CSC No. CSC No.59399-R1 CITY OF FORT WORTH CONTRACT RENEWAL NOTICE July 23, 2024 Shermco Industries, Inc. Attn: Kim Drake -Loy or Whom It May Concern 2425 E. Pioneer Drive Irving, TX 75061 Re: Contract Renewal Notice —1st Renewal Contract CSC No. 59399 The above referenced contract with the City of Fort Worth is eligible for renewal. This letter is to inform you that the City is exercising its right to renew the contract, which will be effective upon execution by the designated Assistant City Manager. Please verify that the original payment, performance and maintenance bonds, if any, remain active or if retired, provide updated bonds when you return this letter. Please review the attached Renewal Agreement, sign in the space indicated therein and return the document, along with a copy of your current insurance certificate, to the undersigned. Please log onto PeopleSoft Purchasing at htty://fortworthtexas.2ov/nurchasin2 to ensure that your company information is correct and up-to-date. If you have any questions concerning this Contract Renewal Notice, please contact me at the telephone number listed below. Sincerely, ,kc�C,C rergland 'F22f ke" i Shatab a (/ Y Contract Compliance Specialist (817) 392-8277 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Renewal Page 1 of 1 Docusign Envelope ID: B70540FE-5231-4C2A-89F3-37383D1CD021 CITY OF FORT WORTH 1st RENEWAL OF AGREEMENT WHEREAS, this First Renewal of Agreement is between the City of Fort Worth, ("City"), and Shermco Industries, Inc. ("Contractor"); and WHEREAS, City and Contractor desire to renew the Original Agreement (City Secretary #59399); and WHEREAS, M&C 23-0300 (April 25, 2023) authorized a maximum amount to be paid to multiple vendors, each under separate agreements, and up to four renewals with cost escalations, for the provision of services generally described as: Switchgear Repair and Replacement Services; and WHEREAS, the Original Agreement was inadvertently issued in the amount of $666,666.66 instead of "up to" the maximum allowable amount. therein. NOW, THEREFORE, it is agreed by the City and Contractor as follows: Article I The Original Agreement is hereby renewed for the first Renewal Term as described Article II The Contractor's compensation for this Renewal shall be an amount up to $2,400,000.00. There is no guarantee that this entire amount will be paid under this renewal. Article III All other provisions of the Original Agreement shall remain in full force and effect. EXECUTED and EFFECTIVE as of the date subscribed by the City's designated City Manager. APPROVED: City of Fort Worth Fernando Costa Assistant City Manager DATE: 8/13/2024 First Renewal of Agreement Shermco Industries, Inc. Shermco Industries, Inc. yyDocuSig//n��ed by: ��'' • F �441ti f,-W'L0*td4` "'ur°®®®U m °16awronski Name: Title: senior Director Legal/Risk DATE: 23-3ul-2024 18:59 AM PDT OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Page 1 of Docusign Envelope ID: B70540FE-5231-4C2A-89F3-37383D1CD021 APPROVAL RECOMMENDED: Christocher Harder Christopher Harder (Aug 9, 202416:15 CDT) Chris Harder Director, Water Department APPROVED AS TO FORM AND LEGALITY: M&C: 23-0300 fj� Date: April 25, 2003 Douglas Black (Aug 13, 202410:03 CDT) Douglas W. Black Assistant City Attorney an➢n p� � ponT�daa oa ATTEST: PVS ^Sp QaA* eo 000°*�d A .:�Cmxu a°ann�zas44p Jannette Goodall City Secretary Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. s� a Shatabya Bergland Contract Compliance Specialist OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX First Renewal of Agreement Page 2 of 2 Shermco Industries, Inc. Docusign Envelope ID: B70540FE-5231-4C2A-89F3-37383D1CD021 City of Fort Worth, Texas Mayor and Council Communication DATE: 04/25/23 M&C FILE NUMBER: M&C 23-0300 LOG NAME: 13P ITB 23-0031 SWITCHGEAR REPAIR AND REPLACEMENT SRVS AW WATER SUBJECT (ALL) Authorize Execution of Agreements with Electrical Reliability Services, Inc., National Electrical Services, Inc. dba National Field Services, and Shermco Industries, Inc. for Switchgear Repair and Replacement Services for the Water Department in a Combined Annual Amount Up to $2,000,000.00 and Authorize Four, One -Year Renewals in the Amount of $2,400,000.00 for the First Renewal, $2,880,000.00 for the Second Renewal, $3,456,000.00 for the Third Renewal, and $4,147,200.00 for the Fourth Renewal RECOMMENDATION: It is recommended that the City Council authorize execution of agreements with Electrical Reliability Services, Inc., National Electrical Services, Inc. dba National Field Services, and Shermco Industries, Inc. for switchgear repair and replacement services for the Water Department in a combined annual amount up to $2,000,000.00 and authorize four, one-year renewals in the amount of $2,400,000.00 for the first renewal, $2,880,000.00 for the second renewal, $3,456,000.00 for the third renewal, and $4,147,200.00 for the fourth renewal. DISCUSSION: The Water Department approached the Purchasing Division for assistance with securing an agreement for switchgear repair and replacement services on an as -needed basis. Under the proposed agreements, the vendors will provide field and shop repairs on electric switchgear equipment located at water and wastewater treatment plants, and pump stations. In the event the electrical component cannot be repaired, the vendors will offer options of replacement components to ensure the electric power distribution systems remain in an operable state. Purchasing issued an Invitation to Bid (ITB) that consisted of detailed specifications including the certification and licensing requirements of prospective vendors, the equipment required to perform repairs, and the response time needed to ensure repairs are performed in a timely manner. The ITB was advertised in the Fort Worth Star -Telegram on February 8, 2023, February 15, 2023, February 22, 2023, and March 1, 2023. The City received three responses. An evaluation panel consisting of representatives from the Water and Transportation Public Works Departments reviewed and scored the submittal using Best Value criteria. The individual scores were averaged for each of the criteria and the final scores are listed in the table below. Bidder Electrical Reliability Services, Inc National Electrical Services, Inc. Shermco Industries, Inc. Best Value Criteria: Evaluation Factors a b c d Total score 111.88I17.50I113.131130.5211 63.02 1 dba National Field Services 1112.50I17.50I112.501132.6511 65.15 113.13I17.50I112.501135.0011 68.13 a. Contractor's availability of equipment and certified personnel to perform services b. Contractor's ability to perform services in a timely manner c. Extent to which the services meet the City's needs d. Cost of service After evaluation, the panel concluded that Electrical Reliability Services, Inc., National Electrical Services, Inc. dba National Field Services, and Shermco Industries, Inc. presented the best value. Therefore, the panel recommends that Council authorize agreements with Electrical Reliability Services, Inc., National Electrical Services, Inc. dba National Field Services, and Shermco Industries, Inc. No guarantee was made that a specific amount of services would be purchased. Staff certifies that the recommended vendors' bids met specifications. Due to market volatility caused by supply chain disruptions, it may be necessary to increase the total compensation for each annual renewal term. Therefore, it is recommended that Council authorize a total compensation increase for the renewal terms, if exercised, of 20% each year. The total compensation for the initial term of the contracts shall not exceed $2,000,000.00, $2,400,000.00 for the first renewal, $2,880,000.00 for the second renewal, $3,456,000.00 for the third renewal, and $4,147,200.00 for the fourth renewal. FUNDING: The maximum amount allowed under this agreement for the initial term will be $2,000,000.00; however, the actual amount used will be based on the need of the department and available budget. Docusign Envelope ID: B70540FE-5231-4C2A-89F3-37383D1CD021 a Wastewater Departments rollup within the Water & Sewer Fund. DVIN-BE: A waiver of the goal for Business Equity subcontracting requirement is approved by the DVIN-BE, in accordance with the Business Equity Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. AGREEMENT TERMS: Upon City Council approval, this agreement shall begin upon execution and expire one year from that date. RENEWAL TERMS: This agreement may be renewed for four additional, one-year terms at the amounts authorized through this Mayor & Council Communication. 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. ADMINISTRATIVE CHANGE ORDER: An administrative change order or increase may be made by the City Manager up to the amount allowed by relevant law and the Fort Worth City Code and does not require specific City Council approval as long as sufficient funds have been appropriated. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously appropriated, in the Water & Sewer Fund. Prior to an expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517 Oriainatina Business Unit Head Additional Information Contact: Expedited Dana Burghdoff 8018 Reginald Zeno 8517 Christopher Harder 5020 Jo Ann Gunn 8525 Alyssa Wilkerson 8357