Sole Source for S71-S26642 - Approve the sole source purchase of water meters and water meter replacement parts, as shown below, in the amount not to exceed $28,132,253.94 for Houston Public Works.

Specific Explanation:

The Director of Houston Public Works and the Chief Procurement Officer recommend that City Council approve the sole source purchase of water meters and water meter replacement parts, as shown below, in the amount not to exceed $28,132,253.94 for Houston Public Works and that authorization be given to make purchases, as needed, for a 36-month period, with two one-year options.  These awards are for water meters and water meter replacement parts, such as measuring chambers, rotor assemblies, gear train assemblies, calibration vane stem gears, spindles, inlet and outlet assembly parts, and drive pinions to be used by the department to replace and repair both residential and commercial water meters citywide.

The sole source awards are as follows:

Badger Meter, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $15,137,775.75.  Badger Meter, Inc. is the sole manufacturer, supplier, and distributor of Badger water meters and water meter replacement parts.

Itron, Inc.:  Approve the award for the purchase of water meter replacement parts in the amount not to exceed $6,323,349.58.  Itron, Inc. is the sole manufacturer, supplier, and distributor of Itron, Inc. water meter replacement parts.

KROHNE, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $922,024.58.  KROHNE, Inc. is the sole manufacturer, supplier, and distributor of KROHNE water meters and water meter replacement parts.

Siemens Industry, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $2,300,549.60.  Siemens Industry, Inc. is the manufacturer of Siemens water meters and water meter replacement parts and will not utilize its distributor for this procurement.

Sensus USA, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $82,520.04.  Sensus USA, Inc. is the manufacturer of Sensus water meters and water meter replacement parts and will not utilize its distributor for this procurement.

ABB, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $1,824,619.23.  ABB, Inc. is the manufacturer of ABB water meters and water meter replacement parts and will not utilize its distributor for this procurement.

Neptune Technology Group, Inc.:  Approve the award for the purchase of water meters and water meter replacement parts in the amount not to exceed $1,541,415.16.  Neptune Technology Group, Inc. is the sole manufacturer, supplier, and distributor of Neptune water meters and water meter replacement parts.

This recommendation is made pursuant to Chapter 252, Section 252.022 (a)(7)(A) "a procurement of items that are available from only one source, including: items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies"  and Chapter 252, Section 252.022 (a)(7)(D) "a procurement of items that are available from only one source, including captive replacement parts or components for equipment" of the Texas Local Government Code for exempted procurements.

M/WBE Participation:

Zero percentage goal document approved by the Office of Business Opportunity.

Hire Houston First:

This procurement is exempt from the City's Hire Houston First Ordinance.  Bids/proposals were not solicited because the department is utilizing sole source suppliers for these purchases.

Fiscal Note:

Funding for this item is included in the FY19 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.