DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
1/12/2017 Annual Contracts
SUMMARY:
An ordinance awarding seven 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 $1,470,168.00. 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. Butler Animal Health Supply, LLC dba Henry Schein Animal Health, Midwest Veterinary Supply, MWI Veterinary Supply Co. dba MWI Animal Health, and Patterson Veterinary for Veterinarian Vaccines, Pharmaceuticals and Supplies, $240,000.00 annually (4 contracts, Animal Care Services Department)
B. GemSeal Pavement Products for Crack Sealant, $264,000.00 annually (1 contract, Transportation and Capital Improvements Department)
C. Star Shuttle, Inc. for an amendment to Annual Contract for Temporary Busing Services for San Antonio International Airport, $500,000.00 increase; $4,787,000.00 total contract value (1 contract, Aviation Department)
D. Selrico Services, Inc. for amendment to Annual Contract for Custodial and Supplemental Conversion/Labor Services at the Alamodome, $466,168.00 for a four month period; $1,766,168.00 total contract value (1 contract, Convention and Sports Facilities Department)
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. Butler Animal Health Supply, LLC dba Henry Schein Animal Health, Midwest Veterinary Supply, MWI Veterinary Supply Co. dba MWI Animal Health, and Patterson Veterinary for Veterinarian Vaccines, Pharmaceuticals and Supplies, $240,000.00 annually, upon award through September 30, 2018 with a one year renewal option -will provide a variety of veterinary vaccines, pharmaceuticals and supplies for use with the animals served by Animal Care Services Department (ACS). As a municipally-owned animal shelter, ACS operates under an open-admission system, caring for approximately 25,000 animals per year. These veterinary vaccines, pharmaceuticals and supplies will ensure ACS animals receive an appropriate level of veterinary care and that proper supplies are available to the ACS employees who work and care for these animals.
B. GemSeal Pavement Products for Crack Sealant, $264,000.00 annually, upon award through March 31, 2020 with two, one year renewal options - will provide the Transportation & Capital Improvements Department with a vendor to furnish crack sealant to repair asphalt streets throughout the City.
Amendments:
C. Star Shuttle, Inc. for an amendment to Annual Contract for Temporary Busing Services for San Antonio International Airport, $500,000.00 increase; $4,787,000.00 total contract value, June 18, 2015 through March 31, 2017 with two, one year renewal options - An amendment to City approved Ordinance No. 2015-06-18-0551, passed on June 18, 2015 which established a contract for temporary busing services at San Antonio International Airport during the construction of the Consolidated Rental Car Facility and for supplemental busing services, as required to transport passengers between outlying surface parking lots and the terminals. This amendment will increase the contract value by $500,000.00. Aviation has exceeded the original estimated contract value due to high demand and use.
D. Selrico Services, Inc. for an amendment to Annual Contract for Custodial and Supplemental Conversion/Labor Services at the Alamodome, $466,168.00 for a four month period through May 31, 2017 - Amendment I will extend the contract awarded to Selrico Services, Inc. on October 29, 2015 and will provide Convention and Sports Facilities Department with an additional four months of custodial and supplemental conversion/labor services at the Alamodome for an estimated cost of $466,168.00 for the period February 1, 2017 through May 31, 2017, with the option to extend month to month not to exceed three months.
The Alamodome requires custodial services including daily, pre-event, event, post-event, and special project cleaning for the interior of the Alamodome excluding catering and concession areas and tenant leased areas. Supplemental conversion and labor services include providing staff to assist Alamodome staff in the setup of events, event staffing requirements, and special projects or maintenance as well as repair tasks. The contract shall provide an onsite Site Manager to manage the operations and personnel such as Custodial/Conversion Supervisor, Custodial Technician (Daily), Custodial Technician (Event/Other), and Conversion Technician to perform the required services.
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. Veterinarian Vaccines, Pharmaceuticals and Supplies - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
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.
B. Crack Sealant - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Amendment to Annual Contract for Temporary Busing Services for San Antonio International Airport -
This contract is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
D. Amendment to Annual Contract for Custodial and Supplemental Conversion/Labor Services at the Alamodome -
This contract is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Veterinarian Vaccines, Pharmaceuticals and Supplies - Should this contract not be approved, requirements for veterinary vaccines, pharmaceuticals and some supplies would be procured by the Animal Care Services Department as needs arise. However, establishing a requirements supply contract will not just allow Animal Care Services Department to achieve economies of scale by aggregating long-term demands but also reduce the administrative costs associated with soliciting small, repetitive and frequent purchases.
B. Crack Sealant - Should this contract not be approved, the City will be required to purchase crack sealant on an as needed basis. The lack of a contract could result in the department’s inability to provide street maintenance in a timely manner and the City could lose the pricing advantage afforded through a competitive bid contract.
C. Amendment to Annual Contract for Temporary Busing Services for San Antonio International Airport - Should this amendment not be approved, the Aviation Department will lose the means to provide passengers safe access to and from the long term garage and the airport terminals during the construction of the Consolidated Rental Car Facility. In addition, when Aviation owned buses are out of commission or Aviation staff drivers are not available, the necessary supplemental services would not be available to fill the gap in service. As a result, service could not be maintained at the desired level.
D. Amendment to Annual Contract for Custodial and Supplemental Conversion/Labor Services at the Alamodome - Should this amendment not be approved, the Alamodome would be required to process individual procurements to provide custodial and supplemental conversion/labor services thus affecting the cleanliness and appearance of the facility and setup times for events. The department does not have the staff to perform these services in-house. Processing individual procurements will affect the cost of services due to non-contract pricing.
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 seven 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 contract amendments and Contract Disclosure Forms are not required.