DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
12/10/2015 Annual Contracts
SUMMARY:
An ordinance awarding five contracts to provide the City with commodities and services on an annual basis for the terms of the contract, for an estimated annual cost of $396,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contract:
A. Southwest Wheel for Automotive & Industrial Light Assemblies, Lenses & Mirrors, $54,000.00 annually (1 contract, Aviation, Building and Equipment Services, Fire and Solid Waste Management Departments)
B. Petroleum Solutions, Inc. for Lubricant Equipment Parts and Service, $43,000.00 annually; $215,000.00 contract period (1 contract, Aviation, Building and Equipment Services, Fire and Solid Waste Management Departments)
C. Custom-Crete, LLC A U.S. Concrete Company for Low Strength Concrete Material, $40,000.00 annually; $200,000.00 contract period (1 contract, Transportation and Capital Improvements Department)
D. Zonar Systems, Inc. for GPS for SWMD Vehicles, $164,000.00 annually (1 contract, Solid Waste Management Department)
E. Siemens Building Technologies for Full Maintenance and Repair of Computer Room Air Conditioning Units at ITSD and EOC, $95,000.00 annually (1 contract, Information Technology Services and Emergency Operations Center Departments)
BACKGROUND INFORMATION:
The City of San Antonio utilizes annual contracts for procuring high volume repetitive purchases. Annual contracts are an efficient method of securing the best prices through volume purchasing and reducing large amounts of work related to the bid process. Utilization of annual contracts allows the City to procure numerous different commodities in support of the normal daily operations.
Contract procured on the basis of low qualifying bid:
A. Southwest Wheel for Automotive & Industrial Light Assemblies, Lenses & Mirrors, $54,000.00 annually, January 1, 2016 through March 31, 2019 with two, one year renewal options - will provide automotive & industrial light assemblies, lens & mirrors used on all types of automotive vehicles, heavy trucks and equipment. This contract will be utilized by the Aviation, Building and Equipment Services, Fire and Solid Waste Departments on an as needed basis.
Contracts procured on the basis of low bid:
B. Petroleum Solutions, Inc. for Lubricant Equipment Parts and Service, $43,000.00 annually; $215,000.00 contract period January 1, 2016 through March 31, 2019 with two, one year renewal options - will provide the Solid Waste Management’s Heavy Fleet Maintenance Division, Building and Equipment Services - Fleet, Aviation-Fleet, and Fire Dept-Fleet Maintenance & Operations Departments with lubrication equipment parts and service at seven service centers located throughout the City.
C. Custom-Crete, LLC A U.S. Concrete Company for Low Strength Concrete Material, $40,000.00 annually; $200,000.00 contract period January 1, 2016 - June 30, 2019 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with a contractor to furnish and deliver low strength concrete material utilized in various City-wide construction applications such as backfill in utility trenches, pipe bedding, void fill, and open street cuts.
Contracts procured on the basis of cooperative purchasing:
D. Zonar Systems, Inc. for GPS for SWMD Vehicles, $164,000.00 annually, January 1, 2016 through December 31, 2016, with two, one year renewal options - will provide the City of San Antonio Solid Waste Management Department (SWMD) with a contractor to provide the Zonar brand V3 Telematics Platform System for 351 vehicles in the department’s inventory. This contract will provide SWMD with the continued annual service of Zonar’s web-based, real-time tracking application which transmits GPS data and vehicle diagnostic information into the City of San Antonio’s unlimited access of Zonar’s Ground Traffic Control (GTC) site. Additionally, the contract will allow for 100 additional Zonar V3 GPS installation kits for 100 recently purchased SWMD commercial vehicles.
This purchase is made utilizing the National Joint Powers Alliance (NJPA) cooperative contract number 051613-ZS1 and will be made in accordance with the Interlocal Agreement number 2009-02-12-0102 passed on 2/12/2009.
E. Siemens Building Technologies for Full Maintenance and Repair of Computer Room Air Conditioning Units at ITSD and EOC, $95,000.00 annually, upon award through September 30, 2016 with two, one year renewal options - will provide the Information Technology Services Department and Emergency Operations Center with a licensed contractor to perform full maintenance and repair services of the computer room air coolers and refrigeration units currently installed at both locations. These services are required to ensure systems are maintained at peak efficiency while increasing longevity, minimizing disruption of service, and controlling the atmospheric and environmental conditions that are mandatory for all IT equipment to operate effectively in a computer room. This contract allows for the contractor to provide break-fix parts and equipment associated with any mechanical failures that are included in this agreement.
This purchase is made utilizing the State of Texas Department of Information Resources (DIR) contract number DIR-TXMAS-7-08FAC060 and will be made in accordance with the state cooperative program passed on Resolution 91-39-53 dated 9/12/1991.
ISSUE:
These contracts represent a portion of approximately 250 annual contracts that will be brought before City Council throughout the fiscal year. These products and services are used by city departments in their daily operations.
A. Automotive & Industrial Light Assemblies, Lenses & Mirrors - Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Lubricant Equipment Parts and Service - Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Low Strength Concrete Material Lubricant - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
There were no bids submitted from local bidders for this contract; therefore, the Local Preference Program was not applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. GPS for SWMD - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
E. Full Maintenance and Repair of Computer Room Air Conditioning Units at ITSD and EOC - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Automotive & Industrial Light Assemblies, Lenses & Mirrors - Should this contract not be approved, various City departments would be required to purchase automotive & industrial light assemblies, lenses & mirrors on an as needed basis wherein increased costs due to non-contract buying could be realized. Thus, increasing potential downtime of equipment and delaying timely completion of maintenance and repair as well as create safety issues.
B. Lubricant Equipment Parts and Service - Should this contract not be approved, City departments will be required to purchase lubrication equipment parts and service on an as needed basis wherein increased cost due to non-contract buying would be realized. Lack of a contract could result in delaying timely completion of maintenance and repairs.
C. Low Strength Concrete Material - Should this contract not be approved, the Transportation and Capital Improvements Department would be required to purchase materials on an as needed basis where increased costs and delivery times would be realized delaying the completion of ongoing construction applications.
D. GPS for SWMD Vehicles - Should this contract not be approved, the Solid Waste Management Department will continue to operate without the automated vehicle locator services and not realize the potential savings or the increased operational, planning and administrative benefits of this service.
E. Full Maintenance and Repair of Computer Room Air Conditioning Units at ITSD and EOC - Should this contract not be awarded, the City would not be able to take advantage of TXMAS contract pricing and would potentially have to employ licensed HVAC personnel to perform the required preventive maintenance on equipment that cools critical IT infrastructure.
FISCAL IMPACT:
Funds are not encumbered by this ordinance. All expenditures will be in accordance with the Department's adopted budget approved by City Council. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of five contracts submitted through this ordinance to provide the City with specified services on an annual contract basis. These annual contracts are critical to the City's daily operations.
These contracts were procured on the basis of low qualifying bid, low bid and cooperative purchasing and Contract Disclosure Forms are not required.