DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
10/30/14 Annual Contracts
SUMMARY:
An ordinance awarding two 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 $47,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contracts:
A. Kinloch Equipment & Supply, Inc. for Elgin Sweeper Parts and Service, $25,000.00 annually; $125,000.00 contract period (1 contract, Solid Waste Management and Transportation and Capital Improvements Departments)
B. Casares Sand Pit & Trucking for Sand Products, $22,000.00 annually; $110,000.00 contract period, (1 contract, Transportation and Capital Improvements and Parks and Recreation 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.
Contracts procured on the basis of low bid:
A. Kinloch Equipment & Supply, Inc. for Elgin Sweeper Parts and Service, $25,000.00 annually; $125,000.00 contract period, upon award through December 31, 2017 with two, one year renewal options - will provide the Solid Waste Management Department with parts and repair services for 11 Elgin Sweepers in the City's fleet. Elgin Sweepers must be maintained by a factory authorized repair facility to function properly. This equipment is used by the Transportation and Capital Improvements Department.
B. Casares Sand Pit & Trucking for Sand Products, $22,000.00 annually; $110,000.00 contract period, upon award through December 31, 2017, with two, one year renewal options - will provide Transportation and Capital Improvements and Parks and Recreation Departments with the supply and delivery of various sand products. These products are primarily utilized for street and drainage construction, maintenance of ballparks and general landscaping 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. Elgin Sweeper Parts and Service - This contract is within the scope of the Small Business Economic Development Advocacy (SBEDA) Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
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 Program (VOSBPP) does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Sand Products - 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.
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.
ALTERNATIVES:
A. Elgin Sweeper Parts and Service - Should this contract not be approved, the City will be required to purchase parts and service on an as needed basis wherein an increased cost due to non-contract buying could be realized and this may increase the down time of equipment, thus delaying timely completion of maintenance and repair.
B. Sand Products - Should this contract not be approved, City departments will be required to process procurements on an as needed basis. However, processing procurements as the needs arise will negatively impact timely delivery of sand products required for urgent requests as well as eliminating cost savings customarily associated with aggregate spending.
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. The estimated annual cost for the contracts listed on this ordinance is approximately $47,000.00. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of two 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 and Contracts Disclosure Forms are not required.