DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
4/12/2018 Annuals
SUMMARY:
An ordinance awarding five contracts to provide the City with commodities and services on an annual basis for the term of the contracts, for an estimated annual cost of $6,206,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the term of the contracts:
A. Hesselbein Tire Southwest, Southern Tire Mart, LLC, and T&W Tire, LLC for Tires and Tire Services, $3,500,000.00 annually (3 contracts, Citywide)
B. J.R. Ramon & Sons, Inc. for Demolition Services, $2,200,000.00 annually (1 contract, Development Services Department)
C. GT Distributors, Inc. for Body Armor, Accessories and Helmets, $506,000.00 Contract period (1 contract, San Antonio Police 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. Hesselbein Tire Southwest, Southern Tire Mart, LLC, and T&W Tire, LLC for Tires and Tire Services, $3,500,000.00 annually, upon award through April 30, 2022, with two one year renewal options - will provide the City of San Antonio with tires and tire services that will support the City's Fleet of approximately four thousand vehicles utilized by all City departments. The tire categories included in this contract are for vehicles such as passenger, truck, industrial, emergency, turf, and heavy equipment. In addition, the contract will also include tire services such as retreading, balancing, road service and repairs.
B. J.R. Ramon & Sons, Inc. for Demolition Services, $2,200,000.00 annually, July 1, 2018 through June 30, 2021, with two, 1 year renewal options - will provide the City of San Antonio, Development Services Department with a qualified contractor to provide demolition services for structures throughout the City on an "as needed" basis. Contractor shall survey structures and test and abate for asbestos as required by federal, state, and local laws. Services include any required site fencing, backfill, demolition, transportation and proper disposal of debris from dangerous structures which may be residential and or commercial; structures owned and or acquired by the City for a public improvement project; and other demolition projects identified by the City.
Cooperative:
C. GT Distributors, Inc. for Body Armor, Accessories and Helmets, $506,000.00 Contract period, upon award through December 31, 2018 - The City of San Antonio Police Department (SAPD) solicited an offer to purchase body armor, accessories, and helmets from GT Distributors, Inc. based upon the results of wear test and ballistic performance conducted by SAPD. The items were tested and evaluated over several months and shoot tests were conducted in October 2016 to ensure ballistics performance met National Institute of Justice (NIJ) standards. The selection was based on functionality, durability, reliability and ballistic performance. The equipment will be utilized by the SAPD SWAT Unit, Bomb Squad (Negotiators and K-9 Unit), and other Special Operation Units (SOU) which consists of the Repeat Offenders, Narcotics and Street Crime Units.
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. Tires and Tire Services - The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
Items 1 and 3 are recommended for award to Hesselbein Tire Southwest which is a local business. Therefore, application of the Local Preference Program was not applied.
Items 4, 5, 6 and 7 are recommended for award to Southern Tire Mart and T&W Tire, LLC which are non-local businesses. No Local Preference was applied since the local bidders were not within 3% of the recommended 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.
B. Demolition Services - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. J.R. Ramon & Sons, Inc. is a small, minority-owned firm that will be self-performing the 33% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal and has committed to satisfying the 3% African American Business Enterprise (AABE) subcontracting goal.
The Local Preference Program does not apply to non-professional service contracts of $500,000 or more, so no preference was applied to this contract.
The Veteran-Owned Small Business (VOSB) Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
C. Body Armor, Accessories and Helmets - The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
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. Tires and Tire Services - Should this contract not be approved, departments will be required to procure tires on an as-needed basis which may result in higher pricing and delays in equipment availability.
B. Demolition Services - Should this contract not be approved, the Development Services Department will be unable to complete demolitions of residential or commercial structures that present a health and safety issue to residents. The department would be required to procure these services on an as needed basis wherein increased costs due to non-contract service rates could be realized.
C. Body Armor, Accessories and Helmets - Should this contract not be approved, the SAPD SWAT Unit and Bomb Squad may not be properly equipped to combat ballistic threats and other threat scenarios in the field. This protective equipment is required to replace the current body armor, accessories and helmets after 10 years of service. The alternative would be to purchase without the benefit of a contract wherein non-contract buying could delay the transition process of replacing the aged equipment in a timely manner and result in increased costs.
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 these 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 bid and cooperative purchasing, and Contract Disclosure Forms are not required.