Natural gas for city's wastewater treatment plants

The City of Amarillo, Texas is seeking proposals for natural gas procurement for its two wastewater treatment plants located at Hollywood Road and River Road. The procurement is an Invitation to Bid (ITB 284-25) for a one-year contract with potential for four additional one-year extensions. The successful vendor will provide natural gas meeting specific quality standards, including a minimum gross heating value of 950 BTUs per cubic foot, measured under standard conditions of 14.73 psia pressure and 60 degrees Fahrenheit. Pricing will be based on the Market Center Spot-Gas Price for West Texas Waha, as published in the Inside FERC's Gas Market Report, with an additional negotiable fixed dollar amount per MMBtu and a 1.25% fuel charge. The maximum daily quantity is set at 800 MMBTU per day, with delivery directly to the meter locations at each treatment plant. The bid is scheduled to close on October 15, 2025, at 2:30 PM, with the City Council expected to review proposals on October 28, 2025.

The procurement includes several key restrictions and considerations for potential vendors. Local Amarillo businesses may receive preference if their bid is within 5% of the lowest non-local bid, potentially allowing award based on the best combination of price and economic development opportunities. Vendors must complete a Texas Ethics Commission Form 1295 and comply with specific state regulations, including provisions related to business practices involving energy companies, firearms entities, and international business restrictions. Bidders must certify they are not suspended or debarred by federal agencies and cannot conduct business with certain restricted entities. The total contract value is not to exceed $137,000.00 per year, and vendors must be prepared to provide comprehensive insurance documentation within 10 business days of contract award. Additionally, the procurement includes provisions for cooperative purchasing and requires vendors to meet specific measurement and delivery standards.