DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
04/09/15 Annual Contracts
SUMMARY:
An ordinance awarding four contracts to provide the City with commodities and services on an annual basis for the terms of the contracts, for an estimated annual cost of $2,713,550.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contracts:
A. Vulcan Construction Materials for Ready Mix Concrete, $1,510,000.00 annually (1 contract, Transportation and Capital Improvements Department)
B. Baggett Claim Service, Inc. for Vehicle Appraisal Services, $95,000.00 annually (1 contract, Building and Equipment Services, Aviation and Solid Waste Management Departments)
C. OverDrive, Inc. for Digital Library Reserve Access Agreement, $1,000,000.00 annually; $3,450,000.00 contract period (1 contract, Library)
D. Library Ideas, LLC for an Amendment to the Downloadable Music and Streaming Services contract, $108,550.00 annually; $599,807.27 amendment contract not to exceed $899,807.27 (1 contract, Library)
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 bid:
A. Vulcan Construction Materials for Ready Mix Concrete, $1,510,000.00 annually, upon award through June 30, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with various grades of ready mix concrete. The contract provides the option for the City to pick up the ready mix concrete or have it delivered to a City specified location. This concrete will be utilized for various applications such as sidewalks, curbs, retaining walls and other construction projects throughout the City.
Contract procured on the basis of low qualifying bid:
B. Baggett Claim Service, Inc. for Vehicle Appraisal Services, $95,000.00 annually, upon award through March 31, 2018 with two, one year renewal options - will provide the Building and Equipment Services Department, Fleet Operations Division, City of San Antonio Aviation Department and Solid Waste Management Department, Fleet Operations Division with vehicle appraisal services. These appraisal services are necessary to assess and establish fair market value on City vehicles that are damaged in the performance of city business. Prior to the repair of a damaged vehicle or piece of equipment, an appraisal is performed to establish the cost of repairs and to determine whether it is economically feasible to repair the vehicle or equipment.
Contract procured on the basis of sole source:
C. OverDrive, Inc. for Digital Library Reserve Access Agreement, $1,000,000.00 annually; $3,450,000.00 contract period, upon award through January 31, 2016 with two, one year renewal options - will provide the San Antonio Public Library with an annual subscription for copyrighted downloadable audio books, videos, music and e-books. These downloadable services are used by the San Antonio Public Library staff and patrons to download titles directly to their computer or laptop, burn to compact disc, or transfer to portable devices, including supported MP3 players. The contract will also provide software maintenance for OverDrive Media stations located at select library branch locations.
These items are being purchased as Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
Amendment:
D. Library Ideas, LLC. for Amendment to Downloadable Music and Streaming Services, $108,550.00 annually; $599,807.27 amendment increase; not to exceed $899,807.27, upon award through February 28, 2016 with four, one year renewal options - amendment to City approved Ordinance 2011-02-10-0107 awarded to Library Ideas, LLC will extend the term of the contract by five additional years for a subscription agreement authorizing access of copyrighted Freegal Music and Streaming of Sony Music Entertainment's copyrighted distributed recordings for the purpose of delivering MP3 downloads to registered cardholders of the San Antonio Public Library system. The service will be available to customers and staff using library and home computers 24 hours a day, seven days a week.
These items are being procured as a Sole source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements.
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. Ready Mix Concrete - This contract is within the scope of the Small Business Economic Development Advocacy (SBEDA) Program. However, no API was recommended due to limited availability.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the Local Preference Program (LPP) was not required.
The Veteran-Owned Small Business Preference Program (VOSBPP) does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Vehicle Appraisal Services - The SBEDA Ordinance requirements were waived due to the lack of qualified SWMBE'S available to provide the goods and services.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the LPP was not required.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Digital Library Reserve Access Agreement - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA Program.
This contract is an exception to the LPP.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Amendment to Downloadable Music and Streaming Services - This contract is exempt from competitive bidding and is excluded from the SBEDA program.
The LPP does not apply to this contract since it was solicited prior to May 1, 2013, the effective date of the program.
The VOSBPP does not apply to this contract since it was solicited prior to January 15, 2014, the effective date of this program.
ALTERNATIVES:
A. Ready Mix Concrete - Should this contract not be approved, Transportation and Capital Improvements Department will be required to process individual procurements as needs arise. Processing requirements as a spot-purchase will not realize the volume cost savings customarily associated with a long term agreement.
B. Vehicle Appraisal Services - Should this contract not be approved, the City's fleet divisions would be required to contract vehicle appraisal services on an as needed basis which could result in higher cost and delays in the timely appraisal of damaged vehicles.
C. Digital Library Reserve Access Agreement - Should this contract not be approved, the Library would be required to submit a purchase requisition each month for services needed. However, processing requirements on an as needed basis will not realize a cost savings customarily associated with long-term agreements.
D. Amendment to Downloadable Music and Streaming Services - Should this contract amendment not be approved, the San Antonio Public Library system will be unable to meet patron demands for an innovative music service and patrons will be required to seek these services elsewhere.
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 four 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 bid, low qualifying, sole source and contract amendment and Contracts Disclosure Forms are not required.