DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
3/9/2017 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 $379,364.00. 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. Southwest Texas Equipment Distributors, Inc. dba Mission Restaurant Supply for the Lease of Ice Machines, $33,000.00 annually; $165,000.00 contract period (1 contract, Citywide)
B. Genuine Parts Company for Public Safety Automotive Batteries, $287,000.00 annually, $1,148,000.00 contract period (1 contract, Building Equipment Services, Police, Fire and Aviation Departments)
C. Selrico Services, Inc. for amendment to Annual Contract for Custodial Services for San Antonio Branch Libraries, $59,364.00 increase, $6,875,000.00 total contract value (1 contract, Library 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 bid:
A. Southwest Texas Equipment Distributors, Inc. dba Mission Restaurant Supply for the Lease of Ice Machines, $33,000.00 annually; $165,000.00 contract period, April 1, 2017 through June 30, 2020, with two, one-year renewal options - will provide City departments with a contractor for the rental of ice making machines, freezer storage bins, and any necessary adapters. The ice machines will be utilized by City departments in daily operations. The contractor will provide delivery and installation as well as preventive maintenance and service of all equipment.
Contract procured on the basis of cooperative purchasing:
B. Genuine Parts Company for Public Safety Automotive Batteries, $287,000.00 annually, $1,148,000.00 contract period, upon award through September 6, 2020, with one, one-year renewal option - will provide automotive batteries for public safety vehicles maintained and utilized by Building and Equipment Services (BES), Police, Fire and Aviation Departments. The Labor Relations Committee recommends the Optima Yellow Top battery based on the dual purpose battery design, which maximizes the alternator’s charge of the battery, requires fewer jump starts, and provides more efficiency and reliability to add on systems such as COBAN, laptops, police light bars, strobes, electrical systems, radar units, and police radio systems. Optima Yellow Top batteries are standard equipment on Police Interceptors.
This purchase is being made through National Joint Powers Alliance contract number 062916-GPC. This purchase is made in accordance with the interlocal agreement with National Joint Powers Alliance (NJPA) passed through Ordinance 2009-02-12-0102, dated 02/12/2009.
Amendment:
C. Selrico Services, Inc. for amendment to Annual Contract for Custodial Services for San Antonio Branch Libraries, $59,364.00 increase, $6,875,000.00 total contract value, upon award through June 30, 2018 - The City of San Antonio City Council, through Ordinance No. 2013-06-20-0429, established a contract with Selrico Services, Inc. for custodial services at branch libraries. A subsequent City Council Ordinance No. 2015-10-01-0838 added Encino Branch Library to the original contract. Change Order No. 3 will add the new Schaefer Branch Library, slated for opening in March 2017, to the contract.
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. Lease of Ice Machines - The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
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 Program does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Public Safety Automotive Batteries - The Small Business Economic Development Advocacy (SBEDA) requirements were waived due to the lack of qualified SMWBE’s available to provide the goods and services.
The recommended award is an exception to the Local Preference Program.
The Veteran-Owned Business Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Amendment to Annual Contract for Custodial Services for San Antonio Branch Libraries -
The Local Preference Program does not apply to this amendment since it was solicited prior to May 1, 2013, the effective date of the program.
The VOSBPP does not apply to this amendment since it was solicited prior to January 15, 2014, the effective date of this program.
ALTERNATIVES:
A. Lease of Ice Machines - Should this contract not be approved, the City of San Antonio will be required to lease ice machines on an as needed basis. Non-contract rates may result in increased costs and adversely affect timeliness of services.
B. Public Safety Automotive Batteries - Should this contract not be approved, BES, Police, Fire and Aviation Departments would be required to purchase automotive batteries on an as needed basis wherein increased costs due to non-contract buying could be realized as well as increased downtime of critical public safety vehicles.
C. Amendment to Annual Contract for Custodial Services for San Antonio Branch Libraries - Should this contract not be approved, the Library Department is not staffed to perform custodial duties at each branch location. A new solicitation would have to be prepared and re-solicited which may result in a lack of custodial service impacting the public and staff.
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 bid, cooperative purchasing, and contract amendment and Contract Disclosure Forms are not required.