DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
8/13/2015 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 $680,000.00. 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. Arnett Marketing, LLC for Holiday Lighting, $260,000.00 annually
(1 contract, Center City Development and Operations, Parks & Recreation, Convention and Sports Facilities and San Antonio Public Library Departments)
B. Cortez Liquid Waste Services, Inc. for Portable Chemical Toilets, $345,000.00 annually (1 contract, Parks & Recreation, Convention & Sports Facilities, Solid Waste Management and Culture & Creative Development Departments)
C. AskReply d/b/a B2GNOW for Maintenance and Support for B2GNOW Software, $75,000.00 annually (1 contract, Economic Development and Transportation and Capital Improvement Departments)
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:
A. Arnett Marketing, LLC for Holiday Lighting, $260,000.00 annually, upon award through March 30, 2016 with two, one year renewal options - will provide Center City Development and Operations, Parks & Recreation, Convention and Sports Facilities and San Antonio Public Library Departments with a contractor to furnish all labor necessary to install, maintain, and remove City-owned LED holiday lighting on assorted trees, structures and statues located in Downtown San Antonio. The service will include, but is not limited to, the installation, maintenance, and removal of holiday lighting and running power cable(s) to fixed or temporary electrical panels. This contract also includes an option for City to rent various holiday lighting such as C-9 LED, LED Minibulbs and C-7 LED lights from the Contractor. Contractor will supply timers as needed to turn lights on at dusk and off at dawn, or as city requires.
Contracts procured on the basis of low bid:
B. Cortez Liquid Waste Services, Inc. for Portable Chemical Toilets, $345,000.00 annually, October 1, 2015 through December 31, 2016 with two, one year renewal options - will provide the Parks & Recreation, Convention & Sports Facilities, Solid Waste Management and Culture & Creative Development Departments with a contractor that will furnish and service standard and ADA compliant portable chemical toilets at various City locations. Services include maintenance, cleaning and re-stocking portable toilets with toilet tissue. These portable toilets are utilized by the general public at parks, special outdoor events or when facilities are undergoing repairs. The Parks Department currently has a total of 140 portable toilet units at over 80 park locations that are maintained on a scheduled basis.
Contracts procured on the basis of Sole Source:
C. Maintenance and Support for B2GNOW Software, $75,000.00 annually, upon award through September 30, 2016 with four, one year renewal options - will provide Economic Development and Transportation and Capital Improvements Departments with maintenance and support agreement for the B2GNOW Diversity Management System used by the City to meet its business diversity program requirements. This contract will also provide EDD and TCI with SAP integration.
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. Holiday Lighting - The Goal Setting Committee applied a four percent (4%) Small Business Enterprise subcontracting goal in accordance with the Small Business Economic Development Advocacy (SBEDA) Program. The successful respondent, Arnett Marketing, LLC, is a small, women-owned company and will be utilizing a small, minority-owned company to meet the 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 Preference Program does not apply to non-professional contracts, so no preference was applied to this contract.
B. Portable Chemical Toilets - Due to lack of subcontracting opportunities, the Goal Setting Committee did not apply a specific SBEDA tool to this contract. However, the recommended bidder is a small, minority, women-owned company.
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 Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Maintenance and Support for B2GNOW Software - This contract is excluded from the scope of the SBEDA program, as it is designated a sole-source procurement.
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. Holiday Lighting - Should this contract not be approved, City departments will be required to procure the installation, maintenance and removal of holiday lights on an as needed basis. Lack of a contract could result in increased cost and delay the installation, maintenance, and removal of holiday lighting.
B. Portable Chemical Toilets - Should this contract not be approved, the City will be required to purchase rental of portable chemical toilets services on an as needed basis. Lack of a contract could result in increased costs and delayed delivery times or lack of availability for scheduled events.
C. Maintenance and Support for B2GNOW Software - Should this contract not be approved, City departments would no longer receive updates, upgrades or technical assistance for the software installed and currently in use to support EDD and TCI. Lack of a contract could result in the City’s inability to accurately and efficiently monitor SBEDA, DBE and Prevailing Wage Requirements.
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 qualifying, low bid, and sole source and Contracts Disclosure Forms are not required.