DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
2/23/2017 Annuals
SUMMARY:
An ordinance awarding four 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 $1,753,000.00. 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. S&S Worldwide, Inc. for Arts and Crafts Supplies, $95,000.00 annually (1 contract, Parks and Recreation, San Antonio Public Library, and Pre-K for SA)
B. Grande Truck Center for Differential Component and Rebuilt Exchange Units Parts & Service, $40,000.00 annually; $200,000.00 contract period (1 contract, Citywide)
C. Arrow International, Inc. for EZ-IO Intraosseous Vascular Access System, $307,000.00 annually (1 contract, Fire Department)
D. Zoll Medical Corporation for X Series 12 Lead Defibrillators & Accessories, $1,311,000.00 annually (1 contract, Fire 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. S&S Worldwide, Inc. for Arts and Crafts Supplies, $95,000.00 annually, upon award through September 30, 2019 with two, one-year renewal options - will provide the San Antonio Public Library, Pre-K for SA, and the Parks and Recreation Department with a wide variety of games, novelties and arts and crafts supplies. These items will be provided at catalog discount pricing on an “as needed” basis and will be used to support the programs offered by the Parks and Recreation Department such as Summer Youth Program, Day Camps, Art programs, classroom supplies for Pre-K 4 SA and on-going programming at the San Antonio Public Library.
B. Grande Truck Center for Differential Component and Rebuilt Exchange Units Parts & Service, $40,000.00 annually; $200,000.00 contract period, April 1, 2017 through March 31, 2020 with two, one-year renewal options - will provide new differential units and differential component parts, as well as labor and repair services of vehicle and equipment differentials. This contract will service approximately 673 medium and heavy trucks utilized by Solid Waste Management, Public Works, Transportation & Capital Improvements Department, and the San Antonio Fire Department.
Contract procured on the basis of sole source:
C. Arrow International, Inc. for EZ-IO Intraosseous Vascular Access System, $307,000.00 annually, April 1, 2017 through June 30, 2020 with two, one-year renewal options - The City of San Antonio issued a Request for Offer to establish an annual contract for the purchase and delivery of Arrow EZ-IO Intraosseous Vascular System and related accessories. These items will be utilized by the San Antonio Fire Department Emergency Medical Services (EMS) during emergency responses. The Arrow EZ-IO Intraosseous Vascular Access System has been approved by the EMS Administration and Office of the Medical Director.
Contract procured on the basis of public health & safety exemption:
D. Zoll Medical Corporation for X Series 12 Lead Defibrillators & Accessories, $1,311,000.00 annually, upon award through February 22, 2019 - will provide the San Antonio Fire Department, EMS Division with Zoll X-Series Manual Monitor/Defibrillators, ancillary supplies for the Zoll X Series Monitor, X Series Service Plans and Extended Warranty, and Zoll X-Series Monitor Repair 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. Arts and Crafts Supplies - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
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. Differential Component and Rebuilt Exchange Units Parts & Service - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
The recommended award is to the lowest responsive bidder, who is also a local business; 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.
C. EZ-IO Intraosseous Vascular Access System - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
This contract is an exception to the Local Preference Program; therefore no Local Preference was applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. X Series 12 Lead Defibrillators & Accessories - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to utilize small, minority, and women-owned business participation on the contract. The Goal Setting Committee set a 11% Minority/Women Business Enterprise (M/WBE) subcontracting goal to which an exception was approved for Zoll Medical Corporation. In addition, the Goal Setting Committee applied the Minority Distributorship Development Program to this solicitation, which incentivizes manufacturers to create SBEDA eligible M/WBE Distributor/ Dealer to respond to the solicitation. If the SBEDA eligible M/WBE Distributor/Dealer is awarded the contract, they shall receive additional three (3) one-year options if awarded this contract. Zoll Medical Corporation chose not to participate in the Minority Distributorship Development Program and will not be awarded the additional option years.
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 Ordinance does not apply to goods/supplies contracts; therefore, the Veteran Owned Small Business Preference Program was not applied.
ALTERNATIVES:
A. Arts and Crafts Supplies - Should this contract not be approved, the City would be required to solicit quotes for required arts and craft supplies on an as needed basis, where increased costs due to non-contract buying could be realized. Non-contract rates may result in increased costs and adversely affect timeliness of delivery.
B. Differential Component and Rebuilt Exchange Units Parts & Service - Should this contract not be approved, the City would have to recruit additional staff to maintain the current inventory of Fleet vehicles and equipment. There are no funds budgeted for additional positions. Departments would also have to purchase items on an as needed basis wherein increased costs due to non- contract buying would be realized.
C. EZ-IO Intraosseous Vascular Access System - Should this contract not be approved, the Fire Department’s Emergency Medical Services Division would be unable to comply with new cardiac arrest initiatives and would have less than optimum intravenous access for the administration of medications. Administering the medication through the EZ-IO intraosseous infusion needles will reduce the patient’s discomfort or potentially save a patient’s life.
D. X Series 12 Lead Defibrillators & Accessories - Should this contract not be approved, the Fire Department, EMS Division would be required to purchase equipment and supplies as requirements arise. Without operational monitors/defibrillators, the EMS Division will not be able to provide critical cardiac treatment on patients who are experiencing cardiac arrest symptoms.
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, sole source, and public health and safety exemption and Contract Disclosure Forms are not required.