Title
MOTION TO APPROVE THE PURCHASE OF UTILITIES PARTS, FITTINGS, AND ACCESSORIES, ON AN AS-NEEDED BASIS FROM CONSOLIDATED PIPE & SUPPLY COMPANY INC, FORTILINE, INC., AND FERGUSON US HOLDINGS INC, UTILIZING PRICING ESTABLISHED BY THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING COOPERATIVE GROUP (CO-OP) BID NO. ITB 25-017, FOR AN ANNUAL AGGREGATE AMOUNT NOT TO EXCEED $500,000, PURSUANT TO SECTION 35.18(C)(6) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City's Code of Ordinances is titled "PROCUREMENT PROCEDURES, PUBLIC FUNDS."
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(6) states that, "Cooperative purchasing plans are exempt from this section."
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission Approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Utilities Department is responsible for the maintenance and repair of the City’s water distribution and wastewater collection systems, via its operations and maintenance function sourcing contractor, Jacobs-OMI.
2. Maintenance and repair of these systems requires the procurement of various parts, fittings, and accessories. Staff has determined that direct procurement of these parts and fittings is in the City’s best interest since the City is a tax-exempt entity.
3. On June 6, 2025, the lead agency, the City of Deerfield Beach, awarded Bid No. ITB 25-017 to the following companies:
Consolidated Pipe & Supply Company, Inc.
Fortiline Waterworks
Ferguson Enterprises, LLC.
4. The Co-Op agreement is for the term of June 6, 2025 to June 5, 2028 with two optional 1-year renewal terms.
5. The Co-Op agreement provides category-based discounts from list pricing. The bid tabulation file attached identifies the applicable discounts for each manufacturer and product category. Vendors must include both the list price and the discounted price when submitting quotes and may only quote items within the categories they were awarded. No single vendor submitted pricing for all requested parts.
6. Staff recommends the City Commission approve the purchase of utilities parts, fittings, and accessories, on an as-needed basis from Consolidated Pipe & Supply Company Inc., Fortiline, Inc., and Ferguson US Holdings Inc., utilizing pricing established by the South East Florida Cooperative Group (Co-Op) Bid No. ITB 25-017, for an annual aggregate amount not to exceed $500,000, pursuant to Section 35.18(C)(6) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $500,000 annually
b) Amount budgeted for this item in Account No: Account coding will vary depending on what the parts and fittings will be used for. Funds are budgeted based on actual usage.
c) Source of funding for difference, if not fully budgeted: Funds are mainly budgeted in Account no. 471-533-6032-546150-0000-000-0000- (R&M Land & Building) and 471-535-6021-546150-0000-000-0000- (R&M Land & Building)
d) 5 year projection of the operational cost of the project
|
|
Current FY |
FY 2027 |
FY 2028 |
Year 4 |
Year 5 |
|
Revenues |
|
|
|
|
|
|
Expenditures |
$500,000 |
$500,000 |
$375,000 |
|
|
|
Net Cost |
$500,000 |
$500,000 |
$375,000 |
|
|
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.