DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
6/12/2014 Annual Contracts
SUMMARY:
An ordinance awarding ten 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 $1,992,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contracts:
A. TXTOW Corp d/b/a Texas Towing for Towing Services for Vehicles & Equipment, $100,000.00 annually (1 contract, Building and Equipment Services and Fire Departments)
B. Casares Sand Pit & Trucking for Black Soil Products, $76,000.00 annually (1 contract, City Wide)
C. Nesco, LLC for Aerial Lift Truck Rental, $74,000.00 annually (1 contract, Transportation & Capital Improvements)
D. Air Flite, Inc. for Helicopter Parts, Engines, and Repairs, $350,000.00 annually (1 contract, Police)
E. AgH20 Holdings, LLC for Supply of Trees, $306,000.00 annually (1 contract, Parks and Recreation Department)
F. John Deere Landscapes, White Dove Distributing and Winfield, LLC for Herbicides, $41,000.00 annually; $205,000.00 contract period (3 contracts, Transportation & Capital Improvements)
G. Airport Lighting Systems, Inc. for Airport Lighting Parts, Signs, and Accessories, $192,000.00 annually (1 contract, Aviation)
H. 3M Company for 3M RFID Service Agreement, $853,000.00 contract period (1 contract, Library)
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. TXTOW Corp d/b/a Texas Towing for Towing Services for Vehicles & Equipment, $100,000.00 annually, upon award through September 30, 2015 with two, one year renewal options - will provide the Building and Equipment Services Department and the San Antonio Fire Department with an experienced, state licensed and qualified towing service company to provide consent towing services and general vehicle and equipment transportation of both operable and non-operable City owned vehicles.
B. Casares Sand Pit & Trucking for Black Soil Products, $76,000.00 annually, upon award through September 30, 2017 with two, one year renewal options - will provide various City departments with the supply and delivery of top soil and top dressing. These products are primarily utilized by the Transportation & Capital Improvements Department, Streets Maintenance Division, for re-construction of street infrastructures located throughout the City as well as the Parks and Recreation Department for general landscaping purposes such as a base for newly installed lawns and plants.
C. Nesco, LLC for Aerial Lift Truck Rental, $74,000.00 annually, upon award through June 30, 2017 with two, one year renewal options - will provide various City departments with the rental of two types of truck-mounted aerial lifts on an as needed basis for the purpose of maintenance operations throughout the City. The maintenance operations include but are not limited to the construction and maintenance of traffic signal equipment and the trimming of trees in parks. The rentals may occur on a daily or monthly basis depending upon department's requirements.
D. Air Flite, Inc. for Helicopter Parts, Engines, and Repairs, $350,000.00 annually, upon award through March 31, 2017 with two, one year renewal options - will provide the Police Department with a contract for Turbomeca, Rolls Royce, and Sikorsky/Schweizer helicopter replacement engine and parts for maintenance and repair of Eurocopter and Sikorsky/Schweizer helicopters. These multi-function helicopters are used by the Police Department 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.
E. AgH20 Holdings, LLC for Supply of Trees, $306,000.00 annually, upon award through September 30, 2015 with a one year renewal option - will provide the Parks and Recreation Department with a contractor to furnish and deliver a variety of 5 and 15 gallon size trees. These trees will be used to increase the City's canopy cover, reduce energy consumption, reduce storm water runoff and help beautify the City of San Antonio.
F. John Deere Landscapes, White Dove Distributing and Winfield, LLC for Herbicides, $41,000.00 annually; $205,000.00 contract period, upon award through May 31, 2017 with two, one year renewal options - will provide the Transportation & Capital Improvements Department, Storm Water Operations Division, with a contractor to furnish and deliver various herbicides and materials assisting in controlling vegetation for invasive species within natural areas and eradication of vegetation within improved concrete channels.
G. Airport Lighting Systems, Inc. for Airport Lighting Parts, Signs, and Accessories, $192,000.00 annually, upon award through September 30, 2017 with two, one year renewal options - will provide the Aviation Department, Airside Maintenance Division, with a vendor to furnish FAA certified and approved airfield lighting parts, signs, and accessories to improve visibility & safety for airport arrivals and departures at the San Antonio International Airport and Stinson Municipal Airport. The recommended vendor will provide certified equipment and manufacturers under the Airport Lighting Equipment Certification Program (ALECP), as specified in Federal Aviation Administration (FAA) Advisory Circular 150/5345-53D, or latest edition.
Contracts procured on the basis of sole source exemption:
H. 3M Company for 3M RFID Service Agreement, $853,000.00 contract period, upon award through September 30, 2015 with two, one year renewal options - will provide the San Antonio Public Library (SAPL) with continuation of the service agreement for maintenance and repair of the 3M RFID equipment currently installed. Pricing includes labor and parts necessary to maintain the equipment in proper operating condition.
These items are being purchased as Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
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. Towing Services for Vehicles & Equipment - 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.
The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the Local Preference Program (LPP) was not required.
The Veteran-Owned Small Business Preference Program (VOSBPP) does not apply to non-professional services contracts, so no preference was applied to this contract.
B. Black Soil Products - 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 the lowest responsive bidder, who is also a local business. Therefore application of the LPP is not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Aerial Lift Truck Rental - 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.
There were no bids submitted from local bidders for this contract; therefore, the LPP was not applied.
The VOSBPP does not apply to non-professional service 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 the lack of available firms and/or contracting 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 LPP was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
E. Supply of Trees - 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.
There were no bids submitted from local bidders for this contract; therefore, the LPP was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
F. Herbicides - 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.
There were no bids submitted from local bidders for this contract; therefore, the LPP was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
G. Airport Lighting Parts, Signs, and Accessories - The SBEDA Ordinance requirements were waived due to the lack of qualified SMWBE's available to provide the goods and services.
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 VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
H. 3M RFID Service Agreement - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA Program.
The recommended award is an exception to the LPP.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Towing Services for Vehicles & Equipment - Should this contract not be approved, the Building and Equipment Services and Fire Departments will be required to secure towing services on an as needed basis resulting in increased costs and potential tow delays.
B. Black Soil Products - Should this contract not be approved, City departments will be required to process procurements as needs arise. However, processing procurements as the needs arise will negatively impact timely delivery of soil products required for ongoing projects as well as negating cost savings customarily associated with aggregate spending.
C. Aerial Lift Truck Rental - Should this contract not be approved, City departments may choose to process individual procurements for the services on an as needed basis, thus not realizing the benefit of contract pricing and resulting in possible delays in completion of City projects.
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 increase downtime of equipment, thus hindering timely completion of maintenance and repair.
E. Supply of Trees - Should this contract not be approved, the Parks and Recreation Department would be required to procure trees on an as needed basis. The department will not realize fixed pricing and order consolidation cost savings associated with having a term contract in place.
F. Herbicides - Should this contract not be approved, the Transportation & Capital Improvements Department, Storm Water Operations Division, will be required to process individual procurements as needs arise. In addition, the department will not realize fixed pricing and order consolidation cost savings associated with having a term contract in place.
G. Airport Lighting Parts, Signs, and Accessories - Should this contract not be approved, the Aviation Department will make purchases as needed which may cause higher pricing and affect delivery.
H. 3M RFID Service Agreement - Should this contract not be approved, the library collection management system currently installed throughout SAPL system will not receive the maintenance required to continue optimum operation. 3M owns the intellectual property rights to the 3M Library Collection Management System and software. 3M is the sole manufacturer and distributor of the associated replacement parts and has the licensed rights to the software. Any maintenance or modifications must originate from 3M.
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 $1,992,000.00. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of ten 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, low qualifying and sole source and Contracts Disclosure Forms are not required.