DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/7/2017 Annual Contracts
SUMMARY:
An ordinance awarding twelve contracts to provide the City with commodities and services on an annual basis for the term of the contract, for an estimated annual cost of $2,411,000.00. 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. Bayscan Technologies, LLC for 3M Radio Frequency Identification (RFID) Tags, $44,000.00 annually; $176,000.00 contract period (1 contract, San Antonio Public Library)
B. Safeway Oil Recovery for Used Coolant Collection, Transportation, Recycling and Disposal, $12,000.00 annually; $60,000.00 contract period (1 contract, Building and Equipment Services, Aviation, Solid Waste Management, and Fire Departments)
C. Bibliotheca, LLC for 3M RFID Maintenance Agreement, $312,000.00 average annual amount, $935,000.00 total contract value (1 contract, San Antonio Public Library)
D. Management Information Technology USA, dba ChildPlus Software for ChildPlus Subscription, $43,000.00 annually; $128,000.00 contract period (1 contract, Department of Human Services)
E. Doggett Freightliner of South Texas, LLC, Fox Truck World, LLC, Heil of Texas San Antonio, Industrial Brake & Clutch, Inc., River City Hydraulics, Rush Truck Centers of Texas, LP, Southern Tire Mart, LLC, and Strategic Fleet Solutions for On-Call Medium and Heavy Duty Truck Repairs, $2,000,000.00 annually (8 contracts, Solid Waste Management)
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. Bayscan Technologies, LLC for 3M Radio Frequency Identification (RFID) Tags, $44,000.00 annually; $176,000.00 Contract period, upon award through September 30, 2019 with two, one year renewal options - will provide for the purchase and delivery of Radio Frequency Identification (RFID) Tags for use by the San Antonio Central Public Library and its branch libraries located throughout the City of San Antonio. These RFID tags are utilized in a variety of sizes for labeling books, videos, DVD’s, CD’s, and other library media.
B. Safeway Oil Recovery for Used Coolant Collection, Transportation, Recycling and Disposal, $12,000.00 annually; $60,000.00 contract period, upon award through September 30, 2020, with two, one year renewal options - will provide collection, transportation, recycling, and disposal of automotive and heavy equipment coolant in accordance with the specifications listed in the IFB and all applicable municipal, state, and federal statutes. This contract shall be utilized by the City’s Building and Equipment Services Department, Aviation Department, Solid Waste Management Department and Fire Department.
Contracts procured on the basis of sole source:
C. Bibliotheca, LLC for 3M RFID Maintenance Agreement, $312,000.00 average annual amount, $935,000.00 total contract value, October 1, 2017 through September 30, 2018 with two, one year renewal options - This contract will provide the San Antonio Public Library (SAPL) with continuation of the annual service agreement for maintenance and repair of the 3M RFID (Radio Frequency Identification) equipment installed in all branches as well as continuation of the software maintenance agreement installed in the Command Center. In 2015, Bibliotheca, LLC assumed all contractual obligations from 3M Company Library services. Pricing includes labor, service parts, and periodic software upgrades necessary to maintain the equipment in proper operating condition.
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.
D. Management Information Technology USA, dba ChildPlus Software for ChildPlus Subscription, $43,000.00 annually; $128,000.00 contract period, upon award through July 31, 2018 with two, one year renewal options - This contract provides the Department of Human Services (DHS) with training, software maintenance, back-ups and upgrades for ChildPlus Software Subscription services. These services include online applications, attendance application, custom module designer, email notifications for parents and staff, plus all the basic functions DHS needs, i.e. eligibility, waiting lists, enrollment, attendance, health, immunizations, nutrition and many more.
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 Sole Source.
Exemption:
E. Doggett Freightliner of South Texas, LLC, Fox Truck World, LLC, Heil of Texas San Antonio, Industrial Brake & Clutch, Inc., River City Hydraulics, Rush Truck Centers of Texas, LP, Southern Tire Mart, LLC, and Strategic Fleet Solutions for On-Call Medium and Heavy Duty Truck Repairs, $2,000,000.00 annually, upon award through March 31, 2019 with a one year renewal option - will provide the Solid Waste Management Department (SWMD) with eight contractors to perform repairs on various medium and heavy duty trucks in the SWMD fleet. By awarding to multiple on-call vendors a more timely return of vehicles to service can be achieved. These proposed contracts will provide general repairs to the City’s Class 4 through Class 8 trucks, including multiple makes and models of refuse trucks, fifth wheel tractor/trailers, grappler trucks, roll-off trucks, aerial lift trucks, street sweepers and pothole patch trucks.
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. 3M Radio Frequency Identification (RFID) Tags - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
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 non-professional services, so no preference was applied to this contract.
B. Used Coolant Collection, Transportation, Recycling and Disposal - The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
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.
C. 3M RFID Maintenance Agreement - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
This contract is exempt from the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional services, so no preference was applied to this contract.
D. ChildPlus Subscription - This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
This contract is exempt from the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies conracts, so no preference was applied to this contract.
E. On-Call Medium and Heavy Duty Truck Repairs - The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
The recommended awards are to the responsive offerors; 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.
ALTERNATIVES:
A. 3M Radio Frequency Identification (RFID) Tags - Should this contract not be approved, the Library would be required to purchase radio frequency identification tags and hubs on an as needed basis which may result in higher costs and negatively affect delivery schedules.
B. Used Coolant Collection, Transportation, Recycling and Disposal - Should this contract not be approved, departments will be required to procure collection, transportation, recycling, and disposal of automotive and heavy equipment coolant on an as-needed basis which may result in higher pricing.
C. 3M RFID Maintenance Agreement - Should this contract not be approved, the library collection management system currently installed throughout SAPL will not receive the maintenance and repairs required to continue optimum operation. As the equipment is proprietary, there is no other vendor that can provide maintenance service.
D. ChildPlus Subscription - Should this contract not be approved, the City would lose the right to receive updates, upgrades, patches and technical support services. Any support for the childplus management system would have to be secured on an as-needed basis wherein increased costs and delivery times due to non-contract buying would be realized.
E. On-Call Medium and Heavy Duty Truck Repairs - Should this contract not be approved, the SWMD would be required to procure truck repair services on an as needed basis wherein increased costs due to non-contract buying could be realized.
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 twelve 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, sole source, and exemption and Contract Disclosure Forms are not required.