DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
5/11/2017 Annual Contracts
SUMMARY:
An ordinance awarding two contracts to provide the City with commodities and services on an annual basis for the term of the contracts, for an estimated annual cost of $137,733.68. This ordinance provides for the procurement of the following items, as needed, and dependent on the departments’ available budget, for the term of the contract:
A. SJ&J Solutions dba Affordable Window Washing Services for Pressure Washing Services, $96,000.00 annually (1 contract, Aviation)
B. CCG Systems, Inc. dba Faster Asset Solutions for amendment to Annual Contract for Building and Equipment Services Faster Fleet Annual Support, $41,733.68 year one; $84,719.37 total contract value (1 contract, Building Equipment Services)
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 bid:
A. SJ&J Solutions dba Affordable Window Washing Services for Pressure Washing Services, $96,000.00 annually, upon award through June 30, 2020, with two, one-year renewal options - will provide power washing services for the San Antonio International Airport to remove contaminants to include, but not limited to, surface oxidation, black algae, mold, dirt, grime, food, beverage spills, grease, oil, gum, tar and other foreign substances from concrete, pavers, stone, and other hard surfaces utilizing a non-destructive process for each type of flat or vertical surface material (up to 40 ft. high).
Amendment/Sole Source:
B. CCG Systems, Inc. dba Faster Asset Solutions for amendment to Annual Contract for Building and Equipment Services Faster Fleet Annual Support, $41,733.68 year one; $84,719.37 total contract value, upon award through March 31, 2018 with a one-year renewal option - This Amendment will provide the Building and Equipment Services Department with an extension to the current contract through March 31, 2018 and will allow for a one year renewal option. This contract provides annual support of an enterprise license for Faster Fleet software. This license provides continued use of this comprehensive asset management software to manage and track various types of assets, repairs, maintenance, fuel, labor, and parts.
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:
This contract represents 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. Pressure Washing Services - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Minority/Women Business Enterprise (M/WBE) Subcontracting Program with a M/WBE Subcontracting goal of seventeen percent (17%). SJ&J Solutions dba Affordable Window Washing Services is a Small, Minority African American Owned business and has committed to self-perform 100% of the contract.
The recommended award is to the low 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. Faster Fleet Annual Support - 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.
ALTERNATIVES:
A. Pressure Washing Services - Should this contract not be approved, the Aviation Department will have to procure pressure washing services on an as needed basis, which may result in higher pricing and affect timely delivery of services.
B. Faster Fleet Annual Support - Should this contract not be approved, BES will not have an enterprise license and will be unable to maintain the collective fleet management records database for all City-owned vehicles and equipment. The City would be required to purchase client licenses for existing software on an as-needed basis resulting in increased costs.
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 Departments 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 amendment/sole source, and Contract Disclosure Forms are not required.