DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
5/21/2015 Annual Contracts
SUMMARY:
An ordinance awarding three 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 $186,000.00. 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. Southwest Public Safety for Installs, Removals, and Repairs of Equipment for Police Motorcycles, $81,000.00 annually (1 contract, San Antonio Police Department)
B. Johnson Controls, Inc., for Ice Sheet Chiller Maintenance and Repair Services for Alamodome, $30,000.00 annually; $152,000.00 contract period (1 contract, Convention and Sports Facilities Department)
C. Centerline Supply for Pavement Marking Material, $75,000.00 annually (1 contract, 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.
Contract procured on the basis of low qualifying bid:
A. Southwest Public Safety for Installs, Removals, and Repairs of Equipment for Police Motorcycles, $81,000.00 annually, upon award through December 31, 2015 with two, one year renewal options - will provide the San Antonio Police Department (SAPD) with labor and repair services to install, remove, and restore safety equipment utilized on the Honda Goldwing Motorcycles, as needed, for the SAPD Motorcycle Detail Unit. This annual contract will also include the labor to remove and repair existing equipment from one motorcycle and install it on another.
Contracts procured on the basis of low bid:
B. Johnson Controls, Inc. for Ice Sheet Chiller Maintenance and Repair Services for Alamodome, $30,000.00 annually; $152,000.00 contract period, upon award through June 30, 2018 with two, one year renewal options - will provide preventive maintenance service and repairs on two, 240 ton reciprocating ice sheet chillers at the Alamodome for the Convention and Sports Facilities Department. This service is needed by the Alamodome to maintain two ice rink systems year round for various types of events. Services will be performed on a monthly, annual, and on an on-call basis for immediate needs.
C. Centerline Supply for Pavement Marking Material, $75,000.00 annually, July 1, 2015 through December 31, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department with a contractor that will furnish thermosplastic pavement marking material. This material will be used in the application of street markings.
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. Installs, Removals, and Repairs, of Equipment for Police Motorcycles - 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 award is to the lowest responsive bidder, who is also a local business. Therefore application of the Local Preference Program was not required.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Ice Sheet Chiller Maintenance and Repair Services - 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. Pavement Marking Material - This contract is within the scope of the SBEDA Program. However, due to the type of commodity/service being procured and value of 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.
ALTERNATIVES:
A. Installs, Removals, and Repairs of Equipment - Should this contract not be approved, the SAPD would be required to procure services on an as-needed basis, wherein increase costs due to non-contract buying could be realized. The department could also be at risk of service delays due to non-contract service providers not being familiar with components.
B. Ice Sheet Chiller Maintenance and Repair Services - Should this contract not be approved, the Convention and Sports Facilities Department will be required to procure parts and preventive maintenance on an as needed basis, thus not realizing the benefit of contract pricing. Performing the services in-house will require additional staff, equipment and materials.
C. Pavement Marking Material - 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. The lack of a contract would require the Transportation and Capital Improvements Department, Traffic Division to revert to painted pavement markings which have a shorter life span of three months versus several years with the application of the thermoplastic pavement marking material.
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 three 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 qualifying and low bids and Contract Disclosure Forms are not required.