DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
11/6/2014 Annual Contract
SUMMARY:
An ordinance awarding a contract to provide the City with commodities and services on an annual basis for the terms of the contract, for an estimated annual cost of $100,000.00. This ordinance provides the procurement of the following item, as needed, and dependent on the Department's available budget, for the terms of the contract:
Waukesha Pearce Industries for Galion, Gradall and Bomag Parts and Service, $100,000.00 annually (1 contract, Solid Waste Management 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:
Waukesha Pearce Industries for Galion, Gradall and Bomag Parts and Service, $100,000.00 annually, upon award through December 31, 2017 with two, one year renewal options - will provide the Solid Waste Management Department with original equipment manufacturer replacement parts and service for repairs of motorgraders, excavators, and rollers utilized for street repairs and river maintenance.
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.
Galion, Gradall and Bomag Parts and Service - This contract is within the scope of the Small Business Economic Development Advocacy Program. However, the requirements were waived due to the lack of qualified S/M/WBE vendors available to provide the required 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 Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
Galion, Gradall and Bomag Parts and Service - Should this contract not be approved, the Solid Waste Management Department will continue to buy parts on an as needed basis. This may increase the cost and affect delivery times, which may also increase the downtime of equipment.
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 contract listed on this ordinance is approximately $100,000.00. Purchases made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of the contract submitted through this ordinance to provide the City with specified services on an annual contract basis. This annual contract is critical to the City's daily operations. This contract was procured on the basis of low bid and a Contracts Disclosure Form is not required.