DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
11/12/2015 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 contract, for an estimated annual cost of $590,000.00. 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. San Antonio Express-News and SA Legal News, LLC d/b/a the Hart Beat for Official & Other Newspaper Advertisements, $353,000.00 annually (2 contracts, Citywide)
B. Consolidated Traffic Controls, Inc. for School Zone Flasher Communication, $237,000.00 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.
Contracts procured on the basis of low bid:
A. San Antonio Express-News and SA Legal News LLC d/b/a the Hart Beat for Official & Other Newspaper Advertisements, $353,000.00 annually, January 1, 2016 through March 31, 2019 with two, one renewal options - will provide newspaper and internet advertisements of legally required notices as well as, but not limited to, official bid notices, election notices, annexation notices and advertisements for City job openings on behalf of various City departments. Advertisements are for legally required notices and for items of general interest. In addition, advertisements may be placed to meet the requirements of the City’s Small Business Economic Development Advocacy Ordinance.
B. Consolidated Traffic Controls, Inc. for School Zone Flasher Communication, $237,000.00 annually, upon award through April 30, 2017 - will provide the Transportation and Capital Improvements Department, Traffic Division, with the purchase and installation of communication equipment to be deployed at each of the existing school zones to provide two-way communications. This communication equipment will allow remote trouble shooting and adjustments to the school zone flashers.
This purchase is made through the Houston-Galveston Area Council of Governments (HGAC) Contract PE05-15 in accordance with the Houston-Galveston Cooperative Purchasing Program Passed on Resolution 96-41-48 dated 10-10-1996.
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. Official & Other Newspaper Advertisements - 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.
San Antonio Express-News - 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.
SA Legal News, LLC d/b/a the Hart Beat - 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 Veteran-Owned Small Business Preference Program does not apply to non professional service contracts, so no preference was applied to this contract.
B. School Zone Flasher Communication - Due to the specialized nature of the goods being purchased, the SBEDA Program did not apply to this solicitation.
The recommended award is an exception to Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Official & Other Newspaper Advertisements - Should this contract not be approved, various City departments would be required to procure advertisement services on an as needed basis wherein increased costs due to non-contract buying could be realized. As a result, this would delay publication of legal notices and items of general interest to the citizens of San Antonio.
B. School Zone Flasher Communication - Should this contract not be approved, the City would lose the ability of two-way communication with the school zone flashers for remote trouble shooting and setting of time of day functions. The Transportation and Capital Improvements Department could procure school zone flasher equipment on an as needed basis but the communication devices are custom manufactured and the cost could increase due to non-contract procurements.
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 bid and Contract Disclosure Forms are not required.