DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
12/11/14 Annual Contracts
SUMMARY:
An ordinance awarding six 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 $155,000.00. 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. Advanced Filtration Products, LLC, All Materials Construction, LLC, Dustless Air Filter Co. and JF Filtration for HVAC Disposable Air Filters, $53,000.00 annually (4 contracts, Aviation Department)
B. Western BRW Paper for Copier and Printer Paper, $48,000.00 annually (1 contract, Finance Department)
C. Alamo Distribution LLC, d/b/a Alamo Iron Works for Reinforced Steel and Mesh Wire, $54,000.00 annually (1 contract, Transportation and Capital Improvements 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.
Contract procured on the basis of low qualifying bid:
A. HVAC Disposable Air Filters, $53,000.00 annually, upon award through December 31, 2017 with two, one year renewal options - will provide for the purchase and delivery of specialty Heating, Ventilation, and Air Conditioning (HVAC) disposable air filters and pads for Citywide departments. HVAC air filters are required for regular maintenance and efficient operation of HVAC systems. Different filters will be utilized at various City facilities and will be ordered on an as needed basis.
Contracts procured on the basis of low bid:
B. Copier and Printer Paper, $48,000.00 annually, upon award through December 31, 2017 with two, one year renewal options - will provide the Finance Department, Print & Mail Operations, with a contractor to provide a continuous supply of a variety of copier and printer paper for use at the print shop to handle citywide printing job orders in a timely and cost effective manner.
C. Reinforced Steel and Mesh Wire, $54,000.00 annually, upon award through June 30, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with a contractor to furnish and deliver reinforcing steel, welded wire and dowels utilized in the maintenance and repair of City highways, streets and bridges.
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. HVAC Disposable Air Filters - 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.
Item 2 - 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 applied.
Items 3, 5, 9 and 10 - In accordance with the LPP, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
Item 6 - This recommended award is in accordance with the LPP and will result in an additional estimated annual cost to the City of $185.00. Dustless Air Filter, the recommended local bidder, submitted a bid of $13,160.25 and is within 3% of JF Filtration, the lowest non-local bidder, who submitted a bid of $12,975.25.
The Veteran-Owned Small Business Preference Program (VOSBPP) does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Copier and Printer Paper - 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.
In accordance with the LPP, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Reinforced Steel and Mesh Wire - This contract is within the scope of the SBEDA Program. However, the Goal Setting Committee did not apply a SBEDA tool as the SBEDA tools available for this contract were not feasible.
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. HVAC Disposable Air Filters - Should this contract not be approved, the City will be required to purchase specialty HVAC filters on an as needed basis, where increased costs due to non-contract buying could be realized and cause a delay in delivery times.
B. Copier and Printer Paper - Should this contract not be approved, Finance Department will be required to secure paper on an as needed basis, wherein increased costs due to non-contract buying could be realized as well as delays in print project completion.
C. Reinforced Steel and Mesh Wire - Should this contract not be approved, the Transportation and Capital Improvements Department would be required to purchase materials on an as needed basis where increased costs and delivery times would be realized delaying the completion of ongoing maintenance and repair of City highways, streets and bridges.
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 in this ordinance is approximately $155,000.00. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of six 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 qualifying and low bid and Contracts Disclosure Forms are not required.