DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: All
SUBJECT:
04/17/2014 Annual Contracts
SUMMARY:
An ordinance awarding four 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 $545,000.00. This ordinance provides the procurement of the following item, as needed, and dependent on the Department's available budget, for the terms of the contracts:
A. ARB Fire Protection for Purchase, Inspection & Maintenance of Fire Extinguishers, $86,000.00 annually (1 contract, City Wide)
B. P & T Lawn Service for Aviation Grounds Clearing & Acreage Shredding, $22,000.00 annually; $110,000.00 contract period (1 contract, Aviation)
C. Potters Industries for Aviation Bonding Glass Beads, $37,000.00 annually; $185,000.00 contract period (1 contract, Aviation)
D. Airbus Helicopters, Inc. f.k.a. American Eurocopter Corporation for Helicopter Parts, Engines, and Repairs, $400,000.00 annually (1 contract, Police)
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 qualifying bids:
A. Purchase, Inspection & Maintenance of Fire Extinguishers, $86,000.00 annually, upon award through March 31, 2017 with two, one year renewal options - will provide various City Departments with a contractor to inspect, repair, test, and maintain existing as well as purchase new fire extinguishers utilized at City owned facilities. User departments include but are not limited to Fire, Convention and Sports Facilities, Parks and Recreation and Transportation and Capital Improvements. This contract is necessary to maintain compliance with safety regulations and fire codes at city facilities.
B. Aviation Grounds Clearing & Acreage Shredding, $22,000.00 annually; $110,000.00 contract period, upon award through June 30, 2017 with two, one year renewal options - will provide the Aviation Department, Airside Maintenance Division, with a vendor to perform grounds clearing and acreage shredding services for the San Antonio Airport System.
C. Aviation Bonding Glass Beads, $37,000.00 annually; $185,000.00 contract period, upon award through June 30, 2017 with two, one year renewal options - will provide the Aviation Department, Airside Maintenance Division, with a vendor to furnish bonding glass beads to improve visibility & safety of airport runway/taxiway traffic approved paint markings at the San Antonio International Airport.
Contract procured on the basis of low bid:
D. Helicopter Parts, Engines, and Repairs, $400,000.00 annually, upon award through March 31, 2017 with two, one year renewal options - will provide the Police Department with a contract for American Eurocopter helicopter parts for maintenance and repair of one American Eurocopter AS350B3 and two EC120B helicopters. These police helicopters are utilized by the Police Department's Helicopter Unit Detail. These multi-function helicopters are used for various search, rescue and overall public safety missions in support of the goals of Homeland Security and assist the mission of Alamo Area Council of Governments (AACOG's ) Regional Law Enforcement Academy in mutual aid requests. The company known as American Eurocopter Corporation has changed its name to Airbus Helicopters, Inc.
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. Purchase, Inspection & Maintenance of Fire Extinguishers - 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 valued of the contract, no SBEDA tool is available.
In accordance with the Local Preference Program (LPP), 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 (VOSB) Preference Program does not apply to non-professional service contracts.
B. Aviation Grounds Clearing & Acreage Shredding - 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.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore application of the LPP was not required.
The VOSB Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
C. Aviation Bonding Glass Beads - 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 VOSB Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Helicopter Parts, Engines, and Repairs - 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 VOSB Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Purchase, Inspection & Maintenance of Fire Extinguishers - Should this contract not be approved, the City would be required to purchase, maintain and inspect fire extinguishers and parts on an as needed basis to maintain compliance with safety regulations and fire codes. Non-contract rates may result in increased costs adversely affecting timely service and delivery.
B. Aviation Grounds Clearing & Acreage Shredding - Should this contract not be approved, the Aviation Department will make purchases as needed which may cause higher pricing and delay the services needed.
C. Aviation Bonding Glass Beads - Should this contract not be approved, the Aviation Department will make purchases as needed which may cause higher pricing and affect delivery.
D. Helicopter Parts, Engines, and Repairs - Should this contract not be approved, the Police Department would have to procure items on an as-needed basis. This may increase the cost of parts as well as downtime of equipment, thus hindering timely completion of maintenance and repair.
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 on this ordinance is approximately $545,000.00. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of 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 and Contracts Disclosure Forms are not required.