DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
11/13/14 Annual Contracts
SUMMARY:
An ordinance awarding five 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 $251,293.00. 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. Butler Animal Health Supply, LLC d/b/a Henry Schein Animal Health, MWI Veterinary Supply, Patterson Veterinary Supply, and Pethealth Services USA Inc. for Veterinary Supplies, $241,000.00 annually (4 contracts, Animal Care Services Department)
B. NEC Corporation of America for an amendment to SAPD Automated Fingerprint Identification, $93,620.00 one-time cost; $10,293.00 annually (1 contract, Police 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 qualifying bid:
A. Butler Animal Health Supply, LLC d/b/a Henry Schein Animal Health, MWI Veterinary Supply, Patterson Veterinary Supply, and Pethealth Services USA Inc. for Veterinary Supplies, $241,000.00 annually, upon award through December 31, 2016 with a one year renewal option - will provide Animal Care Services with various veterinary supplies utilized by veterinary and animal care personnel to treat animals in their care or to maintain the facility clean and orderly.
Amendment:
B. NEC Corporation of America for an Amendment to SAPD Automated Fingerprint Identification, $93,620.00 one-time cost; $10,293.00 annually, until terminated by either party - will provide the City of San Antonio Police Department with an expansion of the Automated Fingerprint Identification System (AFIS) database license from 120,000 to 240,000 records for a one-time cost of $93,620.00 along with an additional annual maintenance fee of $10,293.00. Maintenance and annual support for the AFIS will continue annually as previously approved by City Council through Ordinance 2010-12-16-1057.
NEC holds all patents and has exclusive software rights on all applications and fingerprinting matching algorithms and native fingerprint images. No other vendor can legally convert proprietary data.
ISSUE:
This contract represents 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. Veterinary Supplies - 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 value of the contract, no SBEDA tool is available.
In accordance with the Local Preference Program (LPP), Items 1, 5, 16, 17, 18, 19, 20, 30, 32, 49, 65, 71, 75 are recommended for award to Patterson Veterinary Supply, the low responsive bidder, who is also a local business. Therefore, application of the Local Preference Program (LPP) was not required.
In accordance with the LPP, Items 14 and 69 are recommended for award to Patterson Veterinary Supply, a local bidder submitting a bid within 3% of non-local bidders. The LPP award will result in an additional cost to the City of $3.04.
In accordance with the LPP, all other items are recommended for award to Butler, MWI Veterinary Supply and Pethealth. In accordance with the LPP, no local preference was applied, since the local bidders are not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program (VOSBPP) does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Amendment to SAPD Automated Fingerprint Identification - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
The LPP does not apply to this contract since it was solicited prior to May 1, 2013, the effective date of the program.
The VOSBPP does not apply to this contract since it was solicited on or prior to January 15, 2014, the effective date of the program.
ALTERNATIVES:
A. Veterinary Supplies - Should this contract not be approved, Animal Care Services will be required to purchase veterinary supplies on an as needed basis wherein increased costs due to non-contract buying would be realized. This could affect Animal Care Services' ability to provide medical care to animals in their care on a timely basis, potentially causing a public health issue.
B. Amendment to SAPD Automated Fingerprint Identification - Should this amendment not be approved, the San Antonio Police Department would not have ability to expand the AFIS database by an additional 120,000 license records.
FISCAL IMPACT:
A. 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.
B. The one-time costs associated with SAPD Automated Fingerprint Identification, will be funded through the Information Technology Capital Project. The maintenance costs will be funded through the annually adopted Police Department's Budget. All expenditures will be in accordance with the Department's adopted budget approved by City Council.
RECOMMENDATION:
Staff recommends the acceptance of five 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 bid and an amendment and Contracts Disclosure Forms are not required.