DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
5/7/15 Annual Contracts
SUMMARY:
An ordinance awarding nine 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 $433,000.00. 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. Princeton Medical Solutions, LLC. for Medical Vaccines & Biologicals, $148,000.00 annually (1 contract, San Antonio Metro Health Department)
B. Petroleum Solutions, Inc. for Tank Level Sensing and Leak Detection Parts & Service, $20,000.00 annually; $100,000.00 contract period (1 contract, Building and Equipment Services Department)
C. RDO Equipment Company for John Deere Industrial Parts & Service, $30,000.00 annually; $150,000.00 contract period (1 contract, Solid Waste Management, Fleet Operations, Parks and Recreation, Transportation and Capital Improvement Departments)
D. Consolidated Traffic Controls, Inc., Electrotechnics Corporation, K & K Systems, Inc., Paradigm Traffic Systems, Inc., Texas Highway Products, and Traffic Parts, Inc. for Solar School Flasher and Parts, $235,000.00 annually (6 contracts, Transportation and Capital Improvements 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.
Contracts procured on the basis of low bid:
A. Princeton Medical Solutions, LLC. for Medical Vaccines & Biologicals, $148,000.00 annually, upon award through June 30, 2017 with two, one year renewal options - will provide the City of San Antonio Metropolitan Health Department with medical vaccines and biologicals used to immunize infants, children and adults who depend on the SAMHD Health Clinic for immunization services. The pediatric vaccines will be used for those infants and children who are not eligible to receive federally funded vaccines. The adult vaccines will be used in SAMHD Immunization Clinic for clients traveling to foreign countries where certain vaccines are required before entry as well as for walk-in
and diagnosed clients that are in need of booster doses of certain recommended vaccines.
B. Petroleum Solutions, Inc. for Tank Level Sensing and Leak Detection Parts & Service, $20,000.00 annually; $100,000.00 contract period, July 1, 2015 through December 31, 2018 with two, one year renewal options - will provide the Building and Equipment Services Department with parts, service, and preventative maintenance on an annual basis to the Veeder-Root Monitoring Systems. The Veeder-Root Monitoring System monitors the tank levels and detects any leakage of petroleum products consisting of unleaded gasoline, diesel, new motor oil, and waste oil. This contract will support approximately 17 fuel monitoring locations throughout the City.
C. RDO Equipment Company for John Deere Industrial Parts & Service, $30,000.00 annually; $150,000.00 contract period, upon award through September 30, 2018 with two, one year renewal options - will provide the Solid Waste Management, Fleet Operations, Parks and Recreation, and Transportation and Capital Improvement Departments with parts and service for John Deere Industrial equipment. There are currently 5 John Deere Industrial units in the City's inventory.
Contract procured on the basis of low qualifying bid:
D. Consolidated Traffic Controls, Inc., Electrotechnics Corporation, K & K Systems, Inc., Paradigm Traffic Systems, Inc., Texas Highway Products, and Traffic Parts, Inc. for Solar School Flasher and Parts, $235,000.00 annually, Upon award through June 30, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with a contractor that will furnish and deliver solar school flasher parts for warning signals at various school zone locations throughout the City of San Antonio.
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. Medical Vaccines & Biologicals - Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
There were no bids submitted from local bidders for this contract; therefore, the Local Preference Program (LPP) was not applied.
The Veteran-Owned Business Program (VOSBPP) does not apply to good/supplies contracts, so no preference was applied to this contract.
B. Tank Level Sensing and Leak Detection Parts & Service - Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
The recommended award is to the lowest responsive bidder who is also a local business. Therefore, application of the LPP was not required.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
C. John Deere Industrial Parts & Service - Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
There were no bids submitted from local bidders for this contract, therefore, the Local Preference Program was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Solar School Flasher and Parts - The SBEDA Ordinance requirements were waived due to the lack of qualified SMWBE's available to provide the goods and services.
There were no bids submitted from local bidders for this contract, therefore, the Local Preference Program was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Medical Vaccines & Biological - Should this contract not be approved, the Health Department will be required to purchase the vaccines and biologicals on an as needed basis wherein increased costs and delivery times due to non-contract buying would be realized. Lack of a contract could affect the department's ability to continue providing the public with cost effective alternatives for infants, children and adults as well as foreign travel vaccines.
B. Tank Level Sensing and Leak Detection Parts & Service - Should this contract not be approved, the City would be required to purchase parts and services off contract which could result in higher costs and/or delay of time for the services to be completed.
C. John Deere Industrial Parts & Service - Should this contract not be approved, the City would be required to purchase parts and services off contract which could result in higher costs and/or delay of time for the services to be completed.
D. Solar School Flasher and Parts - Should this contract not be approved, the Transportation and Capital Improvements Department will have to spot purchase from various vendors on an as needed basis which may result in higher pricing and affect delivery time. This could potentially cause a public safety issue.
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 nine 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 low qualifying bid and Contracts Disclosure Forms are not required.