DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Professional Services Contract for Corporate Purchasing Card Services
SUMMARY:
An Ordinance authorizing the execution of a professional services contract with Wells Fargo Bank for corporate purchasing card services for an initial term of five years with two additional, two year renewal terms.
BACKGROUND INFORMATION:
The City of San Antonio established a Corporate Purchasing Card Program in order to streamline the purchasing process for small dollar, non-contract, and non-biddable purchases. The purchasing card program also provides a process for making emergency purchases as needed, to include Emergency Operations Center cards, which are only activated during an emergency situation. The implementation of the Corporate Purchasing Card Program is intended to align with Administrative Directives 1.6 (Purchasing) and 8.3 (Accounts Payable).
A Request for Proposal (RFP) was released on November 20, 2013 with proposals due on December 13, 2013. The City of San Antonio advertised the RFP in the San Antonio Express News and the City's website. A Pre-Submittal Conference was held on November 26, 2013. The City of San Antonio received nine proposals for the Corporate Purchasing Card Program RFP. Upon completion of minimum requirements review, three proposals were deemed non-responsive.
The Evaluation Committee consisted of personnel from the Finance Department including two Assistant Directors, two Department Fiscal Administrators, and one Department Fiscal Manager. The evaluation committee met on May 7, 2014 to review the six responsive proposals. The committee elected to shortlist four firms and conducted interviews / demonstrations on May 23, 2014 and May 28, 2014. After a thorough review of the four firms, the Evaluation Committee recommended Wells Fargo Bank for contract reward.
ISSUE:
An Ordinance authorizing the execution of a professional services contract with Wells Fargo Bank for corporate purchasing card services for an initial term of five years with two additional two year renewal terms.
Wells Fargo Bank will provide all necessary services to maintain and improve the current corporate purchasing card program while in compliance with all federal, state and local laws.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Small Business Enterprise (SBE) Prime Contract Program to this solicitation with 20 evaluation preference points. No evaluation preference points were awarded to Wells Fargo Bank, as they are not a certified SBE located within the San Antonio Metropolitan Statistical Area.
In accordance with the Local Preference Program, the recommended financial institution received five points for having a local office in the incorporated San Antonio city limits for the requisite time period, and with the requisite number of employees.
The Veteran-Owned Small Business Program does not apply to this contract since it was solicited before January 15, 2014, the effective date of the program.
ALTERNATIVES:
Should this contract not be approved, City Council could elect to eliminate the Corporate Purchasing Card Program, putting the burden on City staff to facilitate the purchase of items under $3,000.00, that are not on contract or not biddable.
FISCAL IMPACT:
The contract is expected to generate an additional $36,000.00 in revenue annually for the Procurement Fund. There is a one-time fee of $450.00 to design the card layout, which includes the City of San Antonio Logo, which will be paid out of the Procurement Fund.
RECOMMENDATION:
Staff recommends the approval of this contract for Corporate Purchasing Card with Wells Fargo Bank.
This contract was procured by means of a Request for Proposal and a Contracts Disclosure Form is required.