DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
5/14/15 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 contracts, for an estimated annual cost of $467,000.00. 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. Heil of Texas for Rear Load Cart Lifter Parts & Service, $30,000.00 annually; $150,000.00 contract period (1 contract, Solid Waste Management Department)
B. Clampitt Paper Company for Copier Paper and Card Stock, $207,000.00 annually (1 contract, City Wide)
C. Consolidated Traffic Controls, Inc. for Pedestrian Countdown Timers, $130,000.00 annually (1 contract, Transportation and Capital Improvements Department)
D. 3M Company and American Traffic Safety Materials, Inc. for Transparent Non-Reflective Film, $76,000.00 annually (2 contracts, Transportation and Capital Improvements Department)
E. Litho Press, Inc. for Quarterly Flight Guide Brochures, $24,000.00 annually; $120,000.00 contract period (1 contract, Aviation 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. Heil of Texas for Rear Load Cart Lifter Parts & Service, $30,000.00 annually; $150,000.00 contract period, July 1, 2015 through December 31, 2018 with two, one year renewal options - will be utilized by the Solid Waste Management Department for repairs and replacement of malfunctioning parts on current and newly-purchased refuse collection trucks equipped with the Toter and Perkins D6200 Series Truck Mount Cart Lifters. The City currently has 31 rear-loader refuse collection trucks in the fleet designed to collect trash from carts located in alley ways and other hard-to-reach areas where side loader trucks are unable to fit.
B. Clampitt Paper Company for Copier Paper and Card Stock, $207,000.00 annually, upon award through June 30, 2018 with a one year renewal option - will provide the City with the purchase and delivery of letter and legal-sized copier or multi-purpose paper as well as report or presentation cover card stock utilized by departments City-wide for various printing requirements.
C. Consolidated Traffic Controls, Inc. for Pedestrian Countdown Timers, $130,000.00 annually, July 1, 2015 through September 30, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with a contractor to furnish and deliver pedestrian countdown timers. These countdown timers are pedestrian crosswalk signals with illuminated LED countdown timers showing time allowed for pedestrian crossing.
Contracts procured on the basis of low qualifying bid:
D. 3M Company and American Traffic Safety Materials, Inc. for Transparent Non-Reflective Film, $76,000.00 annually, upon award through September 30, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department, Traffic Operations Division with transparent non-reflective film to be utilized for the fabrication of street signs and directional markings.
E. Litho Press, Inc. for Quarterly Flight Guide Brochures, $24,000.00 annually; $120,000.00 contract period, upon award through September 30, 2018 with two, one year renewal options - will provide the City of San Antonio Aviation Department with a vendor to produce and deliver 9,000 Flight Guide Brochures per quarter. The brochures facilitate travel planning by providing passengers with flight information for all airlines and destinations available to and from San Antonio International Airport. The brochure is distributed in the San Antonio Business Journal. In addition, the Aviation Department does limited quantity of direct mail marketing with the brochures.
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. Rear Load Cart Lifter Parts & Service - This contract is within the scope of the Small Business Economic Development Advocacy (SBEDA) Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
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 (VOSBPP) does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Copier Paper and Card Stock - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
The recommended award is to the lowest responsive bidder who is also a local business. Therefore, application of the LPP was not required.
The VOSBPP does not apply to goods/supplies contracts so no preference was applied to this contract.
C. Pedestrian Countdown Timers - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
There were no bids submitted from local bidders for this contract, therefore, the LPP was not applied.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Transparent Non-Reflective Film - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
In accordance with the LPP, no local preference was applied, since the local bidder(s) are not within 3% of the recommended lowest non-local bidder.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
E. Quarterly Flight Guide Brochures - This contract is within the scope of the SBEDA Program. However, due to the type of commodities/services being procured and value of the contract, no SBEDA tool is available.
This recommended award is in accordance with the LPP and will result in an additional annual cost to the City of $540.65. Litho Press Inc., the recommended local bidder, is within 3% of Clear Visions Inc., the lowest non-local bidder.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Rear Load Cart Lifter 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.
B. Copier Paper and Card Stock - Should this contract not be approved, the City would be required to purchase paper and card stock as need arises which may result in an increased cost per order and may negatively affect delivery times as well. Establishing a fixed price contract will secure volume discounts and will allow price adjustments which will be based on increases and decreases to the Producer Price Index.
C. Pedestrian Countdown Timers - Should this contract not be approved, the Transportation and Capital Improvements Department will be required 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.
D. Transparent Non-Reflective Film - Should this contract not be approved, the TCI, Traffic Operations Division will be required to process individual procurements as need arises. Therefore, processing requirements as spot-purchases will not realize a cost savings customarily associated with long-term agreements.
E. Quarterly Flight Guide Brochures - Should this contract not be approved, the City will continue to do informal solicitations to perform printing services for the publication of brochures. This alternative increases costs and causes delay in delivery times.
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 low qualifying bids and Contracts Disclosure Forms are not required.