DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
5/28/2015 Annual Contracts
SUMMARY:
An ordinance awarding four 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 $634,000.00. 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. Bankson Group, Ltd d/b/a Alamo Tees & Advertising for Promotional Shirts, $132,000.00 annually (1 contract, City Wide)
B. Zamorano Enterprises, Inc., for Decorative Metal Recycling & Dual Metal Trash Receptacles, $287,000.00 annually (1 contract, Parks & Recreation Department)
C. Brown Traffic Products, Inc., for Traffic Signal Heads, $185,000.00 annually (1 contract, Transportation & Capital Improvements Department)
D. Diversified Inspections/ITL for Inspection of Aerial Apparatus and Ground Ladders, $30,000.00 annually; $150,000.00 contract period (1 contract, San Antonio Fire 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. Bankson Group, Ltd d/b/a Alamo Tees & Advertising for promotional shirts, $132,000.00 annually, upon award through June 30, 2018 with two, one year renewal options - will provide city departments with a contractor to furnish promotional shirts for city staff and support programs and promotional events sponsored by the City. Promotional shirts are utilized by city departments for various giveaways to promote city programs and for a casual work uniform alternative for city staff with standard uniform attire. The shirts will be available in youth, adult, tall sizes, white and assorted colors, short-sleeves or long-sleeves, and made of cotton, cotton poly blend, or wicking polyester material.
Contracts procured on the basis of low bid:
B. Zamorano Enterprises, Inc., for Decorative Metal Recycling & Dual Metal Trash Receptacles, $287,000.00 annually, upon award through December 31, 2015 with two, one year renewal options - will provide for the purchase and delivery of decorative metal recycling and dual metal trash receptacles for the Parks & Recreation Department. These receptacles will be utilized in various parks throughout the city to support the control of litter. Metal Recycling and Dual trash and recycling receptacles will be installed within downtown parks. Installation of receptacles will be provided by another annual contract vendor or in-house staff. The recyclable receptacles will be installed next to trash receptacles to prevent cross contamination in the recycling units.
C. Brown Traffic Products, Inc., for Traffic Signal Heads, $185,000.00 annually, July 1, 2015 through September 30, 2018, with two, one year renewal options - will provide the Transportation & Capital Improvements Department, Traffic Operations Division with a contractor to supply and deliver traffic signal heads, visors, and back plates to be used in the construction and maintenance of traffic signalized intersections throughout the City.
D. Diversified Inspections/ITL for Inspection of Aerial Apparatus and Ground Ladders, $30,000.00 annually, July 1, 2015 through September 30, 2018 with two, one year renewal options - will provide the San Antonio Fire Department (SAFD) with a contract for the annual inspection of aerial apparatus vehicles (ladder trucks) including front line vehicles, reserve vehicles and ground ladders. Aerial type apparatus include aerials, aerial platforms and elevated stream devices. The SAFD's fleet inventory includes 27 aerial apparatus and 8,000 feet of ground ladders. This contract provides the SAFD with the third party inspections required in order to be compliant with the National Fire Protection Association (NFPA) 1911 standard.
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. Promotional Shirts - 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 Local Preference Program (LPP) was not required.
The Veteran-Owned Small Business Preference Program (VOSBPP) does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Decorative Metal Recycling & Dual Metal Trash Receptacles - 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 LPP was not required.
The VOSBPP does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Traffic Signal Heads - SBO approves this waiver due to the lack of qualified S/M/WBE vendors available to provide the required goods and services.
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. Inspection of Aerial Apparatus and Ground Ladders - 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.
ALTERNATIVES:
A. Promotional shirts - Should this contract not be approved, city departments will be required to procure promotional shirts on an as needed basis, where increased costs due to non-contract buying could be realized and cause a delay in delivery times.
B. Decorative Metal Recycling & Dual Metal Trash Receptacles - Should this contract not be approved, the Parks & Recreation Department will not be able to install new trash and recycling receptacles as part of future park improvements or replace damaged receptacles. Department would also have to purchase items on an as needed basis wherein increased costs due to non-contract buying would be realized.
C. Traffic Signal Heads - Should this contract not be approved, the Traffic Operations Division will be required to process individual procurements as needs arise. As a result, processing requirements as spot purchases will not realize the cost savings customarily associated with long-term agreements.
D. Inspection of Aerial Apparatus and Ground Ladders - Should this contract not be approved, SAFD would be required to contract with another third party inspector on an as needed basis in order to be in compliance with the required NFPA 1911 standard. Obtaining inspections on an as needed basis could increase the inspection cost due to non-contract buying. Lack of a contract could also affect the operational status of the SAFD ladder trucks which could negatively impact the availability of emergency services to the citizens of San Antonio.
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 four 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 bid and Contracts Disclosure Forms are not required.