DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
1/14/2016 Annual Contracts
SUMMARY:
An ordinance awarding five 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 $1,573,200.00. 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. Midwest Veterinary Supply and Patterson Veterinary for Veterinarian Pharmaceuticals and Vaccine Supplies, $422,000.00 annually (2 contracts, Animal Care Services Department)
B. Stryker Sales Corporation for the Purchase & Maintenance of Ambulance Stretchers, Combination Chairs & Cot Holders, $1,000,000.00 annually (1 contract, San Antonio Fire Department)
C. Ungerboeck Software International, Inc. for Ungerboeck Maintenance & Support $54,000.00 annually (1 contract, Convention & Visitors Bureau and Convention, Sports & Entertainment Facilities Departments)
D. Cartegraph Systems, Inc. for Cartegraph Upgrades to include Maintenance and Support, $97,200.00 Year 1, $36,500.00 annually thereafter (1 contract, Transportation & 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. Midwest Veterinary Supply and Patterson Veterinary for Pharmaceuticals and Vaccine Supplies, $422,000.00 annually, upon award through August 31, 2017 with two, two year renewal options - will provide the Animal Care Services Department with annual supplies of veterinarian pharmaceuticals and vaccines for its municipally-owned and operated animal shelters.
Contract procured on the basis of public health & safety exemption:
B. Stryker Sales Corporation for the Purchase & Maintenance of Ambulance Stretchers, Combination Chairs & Cot Holders, $1,000,000.00 annually, upon award through June 30, 2018 with two, one year renewal options - will provide the San Antonio Fire Department with the purchase and delivery of powered ambulance stretchers as well as the maintenance and extended warranty on ambulance stretchers.
These stretchers are utilized by the Emergency Medical Service Division during emergency incidents for moving and transporting patients. The proposed stretchers have been approved and recommended by the EMS Tool and Equipment Committee. The committee did extensive research on a variety of stretchers and recommended the Stryker brand due to an innovative battery-powered hydraulic system that raises and lowers the patient with the touch of a button, reducing strenuous lifting and the associated risk of back injury to medics.
SAFD research showed that the Stryker brand met all requirements of crash ratings, patient safety, longevity, ease of use, and paramedic safety. All ambulances are currently configured to accept Stryker stretchers and all paramedics receive specialized stretcher training. As ambulances are removed from service for preventative maintenance or repairs, the paramedics are assigned to other ambulances. By maintaining a standardized fleet, stretchers are interchangeable with all ambulances. As a result, a smaller spare stretcher and parts inventory can be maintained reducing the overall cost to the City.
Contracts procured on the basis of sole source:
C. Ungerboeck Software International, Inc. for Ungerboeck Maintenance & Support, $54,000.00 annually, upon award through September 30, 2016 with four one year renewal options - will provide the Convention & Visitors Bureau (CVB) and Convention, Sports and Entertainment Facilities (CSEF) Departments with a three year maintenance agreement for software maintenance and support for the Event Booking Management System (EBMS). This system is used to book and manage CVB and CSEF events for the City.
These items are being purchased as Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
D. Cartegraph Systems, Inc. for Cartegraph Upgrades to include Maintenance and Support, $97,200.00 Year 1, $36,500.00 annually thereafter; $171,000.00 contract period upon award through February 23, 2017 with two, one year renewal options - will provide the Transportation & Capital Improvements Department (TCI) with an upgrade to the current Cartegraph System to include maintenance and support. The Cartegraph System provides a platform to collect asset data and store condition data, assess maintenance needs, store maintenance and inspection information of the City’s infrastructure such as streets, sidewalks, channels, underground storm drainage pipes etc. This system automatically alters condition scores based on life cycle performance curve. This information allows TCI to decide on appropriate maintenance work for City infrastructure.
These items are being purchased as Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
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. Veterinarian Pharmaceuticals and Vaccine Supplies - 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.
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 good/supplies contract, so no preference was applied to this contract.
B. Purchase & Maintenance of Ambulance Stretchers, Combination Chairs & Cot Holders - 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.
The recommended award is an exception to the Local Preference Program.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
C. Ungerboeck Maintenance & Support - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
The recommended award is an exception to the 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.
D. Cartegraph Upgrades to include Maintenance and Support - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
The recommended award is an exception to the Local Preference Program.
This Veteran-Owned Small Business Preference Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Veterinarian Pharmaceuticals and Vaccine Supplies - Should this contract not be approved the Animal Care Services Department will have to buy these chemicals, medicines and drugs on an as-needed basis that could lead to higher costs as well as delays in deliveries of required items.
B. Purchase & Maintenance of Ambulance Stretchers, Combination Chairs & Cot Holders - Should this contract not be approved, the San Antonio Fire Department would have to procure stretchers and service on current inventory on an as-needed basis. This may increase the cost of parts and labor as well as delays in providing services.
C. Ungerboeck Maintenance & Support - Should this contract not be awarded, the City would lose the license agreement to receive updates, upgrades, patches and technical support services for the Event Business Management System (EBMS). Any required support for this system would have to be secured on an as needed basis wherein increased cost and delivery time due to non-contract buying would be realized.
D. Cartegraph Upgrades to include Maintenance and Support - Should this contract not be approved, the Transportation & Capital Improvements Department (TCI) would not have an upgrade to the current Cartegraph System including maintenance and support. TCI would have to depend on the current configuration of the existing system for maintaining infrastructure.
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 five 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 bid, public health & safety and sole source exemptions and Contract Disclosure Forms are not required.