DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
6/2/2016 Annual Contracts
SUMMARY:
An ordinance awarding seven 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 $3,602,000.00. 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. Vulcan Construction Materials, LLC for Flexible Base and Flexible Base for Stabilization, $82,000.00 annually (1 contract, Transportation and Capital Improvements Department)
B. Poppe Automotive for Automotive & Truck Air Conditioning Parts, $25,000.00 annually; $125,000.00 contract period (1 contract, Solid Waste Management, Building and Equipment Services, Aviation, and Fire Departments)
C. Siddons Martin Emergency Group, LLC, Metro Fire Apparatus Specialists, and Frazer, Ltd., for Emergency Vehicle Parts & Service, $1,000,000.00 annually (3 contracts, Fire Department)
D. Valero Marketing & Supply Company for SAFD Fleet Fueling Card System, $2,400,000.00 annually (1 contract, Fire Department)
E. Siemens Industry for Heating, Ventilation, & Air-Conditioning (HVAC) Control Services of APOGEE Building Automation System, $95,000.00 annually (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.
Contract procured on the basis of low qualifying bid:
A. Vulcan Construction Materials, LLC for Flexible Base and Flexible Base for Stabilization, $82,000.00 annually, July 1, 2016 through March 31, 2019 - will provide the Transportation and Capital Improvements Department - Street Maintenance Division with a vendor to furnish flexible base and flexible base for stabilization. This material will be utilized for the reinforcement of street sub-grades in base failures and used as a base for all concrete construction projects throughout the City.
Contracts procured on the basis of low bid:
B. Poppe Automotive for Automotive & Truck Air Conditioning Parts, $25,000.00 annually; $125,000.00 contract period upon award through June 30, 2019, with two, one year renewal options - will provide air conditioning parts for repair and preventative maintenance performed by the Solid Waste Management, Building and Equipment Services, Aviation, and the Fire Departments on automobiles and trucks utilized by City departments.
C. Siddons Martin Emergency Group, LLC, Metro Fire Apparatus Specialists, and Frazer, Ltd., for Emergency Vehicle Parts & Service, $1,000,000.00 annually, July 1, 2016 through September 30, 2019 with two, one year renewal options - will provide the San Antonio Fire Department with emergency vehicle truck parts and service. The San Antonio Fire Department and Emergency Medical Services Division (EMS) will utilize this contract to service Fire apparatus and EMS units.
Contract procured on the basis of public health and safety:
D. Valero Marketing & Supply Company for SAFD Fleet Fueling Card System, $2,400,000.00 annually, August 1, 2016 through September 30, 2019 with two, one year renewal options - will provide the San Antonio Fire Department with a fleet fueling card program for its emergency First Responder vehicles to include ambulances, fire apparatus, and other Fire emergency vehicles. Vehicles requiring such fuel are housed at various facilities throughout the City.
Contract procured on the basis of sole source:
E. Siemens Industry for Heating, Ventilation, & Air-Conditioning (HVAC) Control Services of APOGEE Building Automation System, $95,000.00 annually, upon award through August 31, 2019 with one, one year renewal option - will provide the Aviation Department with software support, updates, data protection/recovery, user licenses, monthly staffing support and technical support including on-line, telephone and on-site service for the Siemens APOGEE Building Automation System which monitors and controls critical environmental conditions at the San Antonio International Airport.
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. Flexible Base and Flexible Base for Stabilization - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
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 goods/supplies contracts, so no preference was applied to this contract.
B. Automotive & Truck Air Conditioning Parts - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
The recommended award is to 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.
C. Emergency Vehicle Parts & Service - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
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.
D. SAFD Fleet Fueling Card System - Due to the lack of small, minority, and/or women businesses available to provide these goods and services, the SBEDA Program did not apply to this solicitation.
The recommended award is to 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 Program does not apply to good/supplies contracts, so no preference was applied to this contract.
E. Heating, Ventilation, & Air-Conditioning (HVAC) Control Services of APOGEE Building Automation System - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Flexible Base and Flexible Base for Stabilization - Should this contract not be approved, the Transportation and Capital Improvements Department will be required to procure materials on an as needed basis. The City could lose the pricing advantage afforded through a competitively bid contract. While the flexible base and flexible base for stabilization may be purchased for each individual project, the department’s budget could be negatively impacted through continuous price variations and longer lead times for delivery.
B. Automotive & Truck Air Conditioning Parts - Should this contract not be approved, the Solid Waste Management and other user departments will be required to procure automotive and truck air conditioning parts on an as-needed basis which may result in higher pricing and delays in performing maintenance on City owned vehicles.
C. Emergency Vehicle Parts & Service - Should this contract not be approved, the City will be required to purchase emergency vehicle truck parts and service on an as needed basis wherein increased cost due to noncontract buying could be realized. This may delay the timely completion of maintenance and repair thus increasing the down time of emergency vehicles which could compromise the emergency response to the residents of San Antonio.
D. SAFD Fleet Fueling Card System - Should this contract not be approved, the San Antonio Fire Department’s emergency vehicles will have to rely on the limited number of City sites for refueling. Fuel supply to emergency vehicles could be interrupted if City fuel sites are not operational, leading to a decrease in the availability of emergency services. Many fire stations may be located miles from the nearest City fueling sites. Fueling solely at the City sites would mean the vehicles will have to travel out of their initial response areas, resulting in delayed emergency response assistance.
E. Heating, Ventilation, & Air-Conditioning (HVAC) Control Services of APOGEE Building Automation System - Should this contract not be approved, the Aviation Department will be required to procure parts and preventive maintenance on an as needed basis. Lack of a contract could result in delaying repairs, resulting in an inefficient and less cost effective method of servicing City owned equipment.
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 seven 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, low bid, public health and safety and sole source and Contract Disclosure Forms are not required.