DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/3/2015 Annual Contracts
SUMMARY:
An ordinance awarding two contracts to provide the City with commodities and services on an annual basis for the terms of the contract, for an estimated annual cost of $358,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the terms of the contract:
A. KW Industries for Traffic Signal Steel Poles, $346,000.00 annually (1 contract, Transportation and Capital Improvements Department)
B. Geodetix, Inc., for Aerial Photography for the San Antonio International Airport & Stinson Municipal Airport, $12,000.00 annually; $60,000.00 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. KW Industries for Traffic Signal Steel Poles, $346,000.00 annually, upon award through December 31, 2018 with two, one year renewal options - will provide the Transportation and Capital Improvements Department, Traffic Operations Division, with a vendor to furnish and deliver steel traffic signal poles. These poles will be utilized in the construction of traffic signals at various locations throughout the City to mount traffic signal equipment at street intersections.
B. Geodetix, Inc. for Aerial Photography for the San Antonio International Airport & Stinson Municipal Airport, $12,000.00 annually; $60,000.00 contract period, upon award through December 31, 2018, with two, one year renewal options - will provide the Aviation Department with a contractor to produce color aerial photographs of the San Antonio International Airport and the Stinson Municipal Airport once per year (August/September) for the Aviation Department. Photographs will consist of high resolution and color digital photography including aerial photography services, verification of geographic information system (GIS) mapping points, and other related services. Geodetix, Inc. is a small business.
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. Traffic Signal Steel Poles - The SBEDA Ordinance requirements were waived due to the lack of qualified small, minority, and women businesses available to provide the necessary goods.
There were no bids submitted from local bidders for this contract; therefore, the Local Preference Program was not applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Aerial Photography for the San Antonio International Airport & Stinson Municipal Airport - This contract is within the scope of the Small Business Economic Development Advocacy (SBEDA) Program. While no SBEDA tool was applied to this solicitation due to the type of commodities/services being procured and value of the contract, the recommended bidder, Geodetix, Inc., is a small business enterprise.
The recommended award is the lowest responsive bidder, who is also a local business. Therefore application of the Local Preference Program was not applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Traffic Signal Steel Poles - Should this contract not be approved, the Transportation and Capital Improvements Department will be required to procure materials on an as needed basis. Due to the nature of this product, long delivery lead times are anticipated; therefore non-contract buying could impact the timely completion of traffic signalization projects.
B. Aerial Photography for the San Antonio International Airport & Stinson Municipal Airport - Should this contract not be approved, the City will be required to acquire aerial photography services on an as needed basis, where increased costs due to non-contract buying could be realized and cause a delay in delivery of services.
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 two 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 Contract Disclosure Forms are not required.