DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/21/2017 Annuals
SUMMARY:
An ordinance awarding five 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 $461,000.00. 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. Ford Audio-Video Systems, LLC for Paging/Speaker System Support & Maintenance at San Antonio International Airport, $100,000.00 annually (1 contract, Aviation)
B. Full Service Auto Parts, Genuine Parts Company, IBS of Paseo Del Rio, and River Birch Way dba Batteries Plus Bulbs for Automotive, Industrial, and Utility Batteries, $361,000.00 annually (4 contracts, Building and Equipment Services, Solid Waste Management, Fire Department, 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.
Contracts procured on the basis of low bid:
A. Ford Audio-Video Systems, LLC for Paging/Speaker System Support & Maintenance at San Antonio International Airport, $100,000.00 annually, October 1, 2017 through March 31, 2020 - will provide the Aviation Department with an annual contract for Support and Maintenance to include the performance of remote and on-site maintenance, software support and updates, semi-annual preventive maintenance and testing, repairs and training as needed for the existing Paging and Speaker System (System) in Terminals A and B at the San Antonio International Airport. This contract will also include an initial System assessment to identify any deficiencies and an inventory of System components and spare parts. The contract will not include replacement of obsolete parts for the aging System; however, the contractor will either rebuild such parts or provide substitute replacement parts.
B. Full Service Auto Parts, Genuine Parts Company, IBS of Paseo Del Rio, and River Birch Way dba Batteries Plus Bulbs for Automotive, Industrial, and Utility Batteries, $361,000.00 annually, October 1, 2017 through August, 31, 2020, with the exception of River Birch Way dba Batteries Plus Bulbs eligible for two, one-year extension years through the Minority Distributorship Development Program (MDDP) - This contract will provide Building & Equipment Services, Solid Waste Management, Fire and Aviation departments with automotive, industrial, and utility batteries to support approximately 3,700 various types of vehicles and equipment utilized throughout the City. Units utilizing the batteries include passenger vehicles, emergency, light, medium, and heavy duty trucks, utility vehicles, and other various equipment. This contract will be monitored by the Building and Equipment Services Department and the Solid Waste Management Department.
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. Paging/Speaker System Support & Maintenance - 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. Automotive, Industrial, and Utility Batteries - 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 utilize small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Minority Distributorship Development Program to this solicitation, which incentivizes manufacturers to create SBEDA eligible M/WBE Distributor/Dealer to respond to the solicitation. If the SBEDA eligible M/WBE Distributor/Dealer is awarded the contract, they shall receive additional two (2) one-year options if awarded this contract. River Birch Way, LLC dba Batteries Plus Bulbs is a Small, Minority/Woman Owned Business Enterprise and was awarded additional contract year under the Minority Distributorship Development Program.
The recommended awards are to the lowest responsive bidders, who are also local businesses; 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. Paging/Speaker System Support & Maintenance - Should this contract not be approved, the Aviation Department would be required to procure Paging/Speaker System Support & Maintenance on an as-needed basis which could expose airport operations to the risks of delayed repairs, System outages and higher costs.
B. Automotive, Industrial, and Utility Batteries - Should this contract not be approved, the City could lose the pricing advantage afforded through a competitively bid contract, and increase delivery time for automotive, industrial and utility batteries.
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 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 bid, and Contract Disclosure Forms are not required.