DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
Annual Contract for Trash Liners - Citywide
SUMMARY:
An Ordinance authorizing a contract with Gulf Coast Paper Company to provide the City with the purchase and delivery of trash liners for an estimated annual cost of $335,000.00. The initial term of this contract is upon award through March 31, 2019 with two, one-year renewal options. No funds will be encumbered by this ordinance which provides for the procurement of trash liners as required, based upon the Department’s available budget.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the bid submitted by Gulf Coast Paper Company (Alternate Bid) for Trash Liners. This contract will provide the City with the purchase and delivery of trash liners in various sizes, strengths and thicknesses for use by City departments. Gulf Coast Paper Company will deliver orders on an as-needed basis with a minimum of twice a week delivery.
In accordance with the Office of Sustainability’s recommendations, this contract will include “Environmentally Preferred Products”. These products have a lesser or reduced effect on human health and the environment when compared with competing products that serve the same purpose.
Based on the current pricing structure for trash liners, the City will realize a savings of 2% on high use trash liners of various sizes, strengths and thicknesses. These savings will favorably impact 85% of the projected spend on this contract. The balance of the projected spend will be from lower use trash liners available through Gulf Coast Paper’s specified catalog at one set discount.
ISSUE:
The City issued an Invitation for Bid (IFB) for an “Annual Contract for Trash Liners - Citywide” (IFB 6100006659) on October 23, 2015 and five bids were received on November 13, 2015. Two bids were evaluated for Trash Liners - Citywide. Staff recommends acceptance of the low responsive alternate bid from Gulf Coast Paper Company.
A comprehensive evaluation of all bids received was conducted by Purchasing staff to determine the overall lowest responsive bidder. The first step was to review bids in an effort to determine their compliance with the IFB requirements which resulted in three bids being disqualified for material deviations to the IFB requirements. The second step was to perform an analysis of the two IFB pricing sections. First, staff evaluated discounts submitted for specified trash liners contained in the bidders’ published catalog. Second, pricing was analyzed for the high volume trash liners purchased by the City. Due to the larger volume, bidders were given the opportunity to provide deeper discounts for these core items versus the remaining items contained in the specified trash liners category. All discounts must remain fixed for the duration of the contract term.
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 goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
Should this contract not be approved, the City would be required to purchase trash liners as needs arise thereby negating the price advantage associated with consolidating the City’s purchasing power through one competitive solicitation. Establishing the contract based upon catalog discounts will secure substantial savings from the published prices for these high use items.
FISCAL IMPACT:
The estimated annual cost for this contract is $335,000.00. No funds are encumbered by this ordinance which provides for the procurement of specified trash liners as required, based upon the Department’s available budget.
RECOMMENDATION:
Staff recommends the approval of this contract with Gulf Coast Paper Company to provide the City with the purchase and delivery of trash liners for an estimated annual cost of $335,000.00.
This contract is procured by means of a low bid and a Contracts Disclosure Form is not required.