DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
2/2/2017 Annual Contracts
SUMMARY:
An ordinance awarding six 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 $532,000.00. 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. Michelson Found Animals Foundation, Inc. for Registered Microchips for Animal Care Services, $133,000.00 annually (1 contract, Animal Care Services)
B. Supply Innovations Co. LLC., Mastermans LLP, and Sunbelt Mill Supply, Inc. for Electrolyte Replacement Drinks, $53,000.00 annually (3 contracts, Citywide)
C. Texas Star Supply, LLC. for Asphalt Emulsion Sealcoat Material, $292,000.00 Annually (1 contract, Transportation and Capital Improvements)
D. Hays City Corp dba Tex-Con Oil Co. for Bulk Diesel Exhaust Fluid, $54,000.00 annually (1 contract, Building and Equipment Services)
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. Michelson Found Animals Foundation, Inc. for Registered Microchips for Animal Care Services, $133,000.00 annually, upon award through September 30, 2018 with two, one year renewal options - will provide Animal Care Services (ACS) with a supplier for the purchase and delivery of registered microchips. These microchips are utilized by ACS as a permanent form of licensing and as a way to identify animals in the event they become lost or stolen. All animals reclaimed by their owner or adopted from ACS are microchipped, unless medically prohibited. Registered microchips are recorded in a National Pet Recovery System listing contact information for the pet’s owner, alternate contact information for the pet owner, and veterinarian information shortly after the adoption is finalized. Registered microchips play a vital role in ensuring lost pets are returned to their owners. By recording the pet owner’s contact information with the microchip provider, Animal Care Services will enhance their resources to help ensure the pet is returned to their family. In addition to increasing the shelter’s live release rate, these pet-owner reunions ease shelter overcrowding by facilitating positive outcomes earlier.
B. Supply Innovations Co. LLC., Mastermans LLP, and Sunbelt Mill Supply, Inc. for Electrolyte Replacement Drinks, $53,000.00 annually, upon award through September 30, 2018 with one, one year renewal option - will provide various City Departments with electrolyte replacement drinks in both powder and ready-to-drink varieties. Electrolytes are chemicals that form ions in body fluids and help make sure specific bodily functions run at optimal levels. This drink will be utilized by City employees to maintain consistent hydration and electrolyte replenishment when performing manual labor in hot and/or humid conditions. The powder mix is utilized by TCI, Solid Waste and BES Departments. The ready-to-drink electrolyte replacement drink is utilized by the Fire Department for both the SAFD firefighters and EMS Paramedics.
C. Texas Star Supply, LLC. for Asphalt Emulsion Sealcoat Material, $292,000.00 annually, upon award through December 31, 2017 - will provide the Transportation and Capital Improvements Department, Streets Maintenance Division with a vendor to furnish asphalt pavement sealer materials. These paving materials are used for the construction and repair of streets for pavement preservation throughout the City.
D. Hays City Corp dba Tex-Con Oil Co. for Bulk Diesel Exhaust Fluid, $54,000.00 annually, upon award through June 30, 2020, with two, one year renewal options - This contract will provide bulk supply and delivery of Diesel Exhaust Fluid (DEF) as well as providing returnable/refillable service. Returnable/refillable service is defined as bulk delivery of the Diesel Exhaust Fluid to various locations on an as needed basis so the City has adequate supply for operations. This product is utilized by the Building and Equipment Services Department.
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. Registered Microchips - 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.
There were no bids submitted from local bidders for this contract; therefore, the Local Preference Program was not applied.
The Veteran-Owned Small Business Preference Program Ordinance does not apply to goods/supplies contracts; therefore, the Veteran Owned Small Business Preference Program was not applied.
B. Electrolyte Replacement Drinks - 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 awards for Line Items 1-3 and 8-10 are to the lowest responsive bidders, who are also local businesses; therefore, application of the Local Preference Program was not applied. For line Items 4-7, no local preference was applied, since the local bidders for said items were not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Asphalt Emulsion Sealcoat Material - 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 Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
D. Bulk Diesel Exhaust Fluid - 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.
In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Registered Microchips - Should this contract not be approved, requirements for microchips would be procured by the ACS Department as needs arise. However, establishing a requirements supply contract will not just allow the ACS Department to achieve economies of scale by aggregating long-term demands but will also reduce the administrative costs associated with soliciting small, repetitive and frequent purchases.
B. Electrolyte Replacement Drinks - Should this contract not be approved, using departments would be required to purchase electrolyte replacement drinks as their individual needs arise. However, aggregating demands by establishing a requirements contract will result in lower, fixed prices for an extended period of time.
C. Asphalt Emulsion Sealcoat Material - Should this contract not be approved, Transportation and Capital Improvements Department will be required to procure materials on an as needed basis where increased costs and delivery times would occur and result in delays in the completion of city projects.
D. Bulk Diesel Exhaust Fluid - Should this contract not be approved, the Building and Equipment Services Department will be required to procure bulk supply and delivery of Diesel Exhaust Fluid (DEF) on an as-needed basis which may result in higher pricing and delays of maintenance for City owned vehicles.
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 six 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, and Contract Disclosure Forms are not required.