DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
6/8/2017 Annual Contracts
SUMMARY:
An ordinance awarding one contract to provide the City with commodities and services on an annual basis for the term of the contract, for an estimated annual cost of $240,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the term of the contracts:
A. TXTOW Corp DBA Texas Towing for Towing Services for Vehicles & Equipment, $240,000.00 annually (1 contract, Citywide)
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. TXTOW Corp DBA Texas Towing for Towing Services for Vehicles & Equipment, $240,000.00 annually, upon award through September 30, 2020 with two, one-year renewal options - This contract will provide various City Departments with consent towing services and general vehicle and equipment transportation of both operable and non-operable City-owned vehicles in compliance with State of Texas and Federal Towing/Vehicle Transport guidelines.
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. Towing Services for Vehicles & Equipment - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires solicitations be reviewed by a Goal Setting Committee (GSC) to establish a requirement and/or incentive in an effort to maximize the amount of Small, Minority, and Women-owned business participation. The GSC applied the Small Business Enterprise (SBE) Subcontracting Program with a SBE Subcontracting goal of twenty two (22%) percent. TXTOW Corp dba Texas Towing is a small business and has committed to self-perform the contract.
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 services, so no preference was applied to this contract.
ALTERNATIVES:
A. Towing Services for Vehicles & Equipment - Should this contract not be approved, City Departments would be required to provide towing services on an as needed basis which may result in higher prices and delays in vehicle and equipment pick up.
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 one contract 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.
This contract was procured on the basis of low bid, and a Contract Disclosure Form is not required.