DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
8/3/2017 Annual Contracts
SUMMARY:
An ordinance awarding three contracts to provide the City with commodities and services on an annual basis for the term of the contract, for an estimated annual cost of $187,300.00. 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. Southwest Companies dba Southwest Wheel for Trailer and Tarp Parts and Service, $40,000.00 annually; $200,000.00 Contract period (1 contract, Solid Waste Management and Transportation and Capital Improvements)
B. Municipal Emergency Services, Inc. for Fire Hoses, $147,300.00 annually (1 contract, San Antonio 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.
Contract procured on the basis of low bid:
A. Southwest Companies dba Southwest Wheel for Trailer and Tarp Parts and Service, $40,000.00 annually; $200,000.00 Contract period, upon award through October 31, 2020 with two, one-year renewal options - will provide the Solid Waste Management Department, Fleet Operations Division, and Transportation and Capital Improvements with repair and labor services for high capacity trailers and tarp assemblies, and haul vehicles used to pick up brush throughout the City.
Contract procured on the basis of public health and safety exemption:
B. Municipal Emergency Services, Inc. for Fire Hoses, $147,300.00 annually, upon award through July 31, 2020 - This contract will provide the San Antonio Fire Department (SAFD) with a vendor that can supply fire hose and couplings that meet the standards of NFPA 1961. The SAFD utilizes fire hose to mitigate fire emergencies such as house, car or grass fires in both residential and commercial settings. The awarded vendor will provide red line booster hoses, double jacket rubber lined and thermoplastic lined fire hoses, large diameter supply lines and woodland forestry fire hoses. Currently, SAFD’s entire inventory of hose is manufactured by Firequip. This manufacturer’s product was chosen after extensive testing by the Tool and Equipment Committee.
At issue is the fact that different manufacturers have different fitting tolerances resulting in a poor fit between unlike brands, leading to leakage and unsecure connections. The National Fire Prevention Association (NFPA) 1962 standard dictates that the authority having jurisdiction determines the life expectancy of the hose. Current industry standard is 10 years and current policy with SAFD goes with the same recommendation. Because testing occurs annually, hoses will be replaced consistently throughout the life of the contract.
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. Trailer and Tarp Parts and 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, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to non-professional services, so no preference was applied to this contract.
B. Fire Hoses - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts to 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 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 two (2) one-year options if awarded this contract. Municipal Emergency Services, Inc. chose not to participate in the Minority Distributorship Development Program and will not be awarded the additional option years.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional services, so no preference was applied to this contract.
ALTERNATIVES:
A. Trailer and Tarp Parts and Service - Should this contract not be approved, City Departments would be required to procure trailer and tarp repair services on an as needed basis which may result in higher prices and delays in vehicle and equipment repairs.
B. Fire Hoses - Should this contract not be approved, the SAFD’s operational activities would be unfavorably impacted. The department will be required to procure fire hoses on an as needed basis, which could lead to inconsistent pricing and delivery delays. Delivery delays could put first responders and the residents of San Antonio at risk.
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 three 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 public health and safety exemption, and Contract Disclosure Forms are not required.