To: Mark R. Hafner, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution rejecting the bid for Water/Sewer Line Parts from Ferguson Waterworks of Fort Worth, Texas and authorizing the City Manager to re-advertise the bid on behalf of the City of Keller, Texas.
Action Requested:
Reject the proposal for Water/Sewer Line Parts received on November 28, 2018 Ferguson Waterworks of Fort Worth, Texas.
Background:
This rejection will mark the second time this type of bid has been rejected.
On October 2, 2018, city staff received only one (1) proposal for Water/Sewer Line Parts from Ferguson Waterworks. While reviewing the bid received, staff determined that a required part of the submission was missing. Because of this missing item, the City was required to reject the bid and re-advertise for Water/Sewer Line Parts.
The City re-advertised for Water/Sewer Line Parts on October 29, 2018. City staff received only one (1) proposal for Water/Sewer Line Parts, again from Ferguson Waterworks. While reviewing the bid received, staff determined that the pricing in the bid appears excessive and is higher than the first rejected bid. Because of this issue, the City will reject the bid for Water/Sewer Line Parts.
The proposing vendor indicated a price increase of two hundred forty-seven percent (247%) over the FY 2017-18 agreement. Two other vendors were notified of the bid advertisement and indicated their desire to submit, but neither responded with a proposal.
Staff will conduct further research to improve our existing bid and/or entering into cooperative purchasing agreements with neighboring cities. It is our desire and first choice to improve the existing bid further because other agreements provide for only a portion of the parts we require. However, due to the lack of responses, further research will be conducted so that we may fully understand the implications of cooperative purchasing on items which are required as a part of our construction specifications.
Financial Impact:
Not applicable
Citizen Input/Board Review:
Not applicable
Legal Review:
The City Attorney has reviewed the course of action and concurs with staff.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Reject all proposals and authorize re-advertising.