DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
12/15/2016 Annual Contracts
SUMMARY:
An ordinance awarding three 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 $499,000.00. 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. Garces Enterprises, dba Garces Waterjet for Park Identification Signs and Logo Plates, $26,000.00 annually; $130,000.00 contract period (1 contract, Parks and Recreation Department)
B. Martin Marietta for Aggregate for Surface Treatment, $73,000.00 annually (1 contract, Transportation and Capital Improvements)
C. Ag-Pro Texas LLC for John Deere Tractor Parts and Service, $400,000.00 annually (1 contract, Solid Waste Management, Transportation & Capital Improvements, Parks and Recreation)
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. Garces Enterprises, dba Garces Waterjet for Park Identification Signs and Logo Plates, $26,000.00 annually; $130,000.00 contract period, upon award through December 31, 2019 with two, one year renewal options - will provide the Parks and Recreation Department with a contractor that will manufacturer and deliver metal park identification signs and logo plates on an as needed basis. The cold rolled steel sheet metal identification signs and logo plates are used to display the Park name and address at Park locations throughout the City.
B. Martin Marietta for Aggregate for Surface Treatment, $73,000.00 annually, January 1, 2017 through March 31, 2020 with two, one year renewal options - will provide Transportation & Capital Improvements Department - Streets Maintenance Division with a contractor to furnish aggregate used as surface treatments for asphalt, de-icing material and for the control of asphalt bleeding. Aggregate materials are utilized to improve the durability of asphalt paving projects, construction and repairs throughout the City.
C. Ag-Pro Texas LLC for John Deere Tractor Parts and Service, $400,000.00 annually, January 1, 2017 through March 31, 2020, with two, one year renewal options - will provide repair parts and service for John Deere Agriculture Tractors in accordance with the specifications listed in the IFB. This contract shall be utilized by the Transportation & Capital Improvements, Parks and Recreation and the Solid Waste Management Departments.
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. Park Identification Signs and Logo Plates - 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 was applied.
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. Aggregate for Surface Treatment - 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.
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 goods/supplies contracts, so no preference was applied to this contract.
C. John Deere Tractor Parts and Service - 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.
ALTERNATIVES:
A. Park Identification Signs and Logo Plates - Should this contract not be approved, the City would be required to purchase Park identification signs and logo plates on an as needed basis. Non-contract rates may result in increased costs and adversely affect timeliness of services.
B. Aggregate for Surface Treatment - Should this contract not be approved, the Transportation and Capital Improvements Department will be required to procure this material on an as needed basis. The City could lose the pricing advantage afforded through a competitively bid contract. The lack of a contract could result in the department’s inability to provide street maintenance in a timely manner.
C. John Deere Tractor Parts and Service - Should this contract not be approved, the user will be required to procure repair parts and service for John Deere Agriculture Tractors and Off-Road Construction Equipment on an as-needed basis which may result in higher pricing and delays on maintenance for City owned equipment.
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 Contract Disclosure Forms are not required.