DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Annual Contract for Municipal Commercial Garbage Collection, Disposal and Recycling Services
SUMMARY:
This ordinance authorizes acceptance of a contract with BFI Waste Systems of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio, to provide commercial garbage collection, disposal and recycling services for the City of San Antonio municipal facilities for an estimated annual cost of $910,000.00. This ordinance also authorizes acceptance of Amendment Two to extend current contract with Waste Management of Texas, Inc. to provide commercial garbage collection, disposal and recycling services for an additional 60 day period for an estimated total amount of $146,000.00. The amendment is necessary to provide services during the transition phase to a new contractor. Funding is available through the FY 2018 Operating Budget.
BACKGROUND INFORMATION:
A. Submitted for Council consideration and action is a proposal submitted by BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio to provide commercial garbage collection, disposal and recycling services for municipal facilities throughout the City of San Antonio.
The City issued a Request for Proposal on the basis of a Public Health & Safety Exemption for an “Annual Contract for Municipal Commercial Garbage Collection, Disposal and Recycling Services” on September 6, 2016, with a submission deadline of July 26, 2017. Three proposals were received. One proposal was deemed non-responsive by the Economic Development Department due to respondent's failure to meet the Small Business Economic Development Advocacy subcontracting requirement. BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio was selected based on the City's standard RFP evaluation process.
The evaluation committee consisted of representatives from the Convention and Sports Facilities Department, Parks and Recreation Department, Solid Waste Management Department, Aviation and the Finance Department. The Finance Department, Purchasing Division, facilitated by ensuring compliance with City procurement policies and procedures. The proposals were evaluated based on the firm’s qualifications, experience, service quality, previous performance, proposed plan and price schedule. Additional categories of consideration included references and financial qualifications.
The evaluation of each proposal response was based on a total of 100 points; 30 points allotted for experience, background, qualifications; 30 points allotted for proposed plan; and 25 points allotted for respondent’s price schedule. Ten preference points were allotted for the Local Preference Program, and five points allotted for the Veteran-Owned Small Business Preference Program.
The evaluation committee met on September 22, 2017 to discuss the two responsive proposals received. After committee review and discussion, the selection committee recommended interviewing the two responsive respondents. The interviews were held on October 10, 2017. Following the interviews, individual scores were submitted. The City requested a Best and Final Offer from both respondents on October 17, 2017 with responses to be received by October 20, 2017. After scores were finalized, BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio received the highest ranking and was recommended for award by the evaluation committee.
The initial term of the agreement shall be December 1, 2017 through November 30, 2019. Two additional one-year renewals at the City’s option shall also be authorized by this ordinance.
B. Submitted for Council consideration and action is Amendment Two to City approved Ordinance 2016-11-10-0888 awarded to Waste Management of Texas, Inc. This Amendment will extend the term of the current contract for 60 days, December 1, 2017 through January 31, 2018 and will provide continued municipal commercial garbage collection and disposal services and recycling services to City facilities during the transition phase to the new provider. The 60 days extension will provide for a smooth transition from the current contractor, Waste Management of Texas, Inc. to the new recommended respondent BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio.
ISSUE:
A. This contract with BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio will provide commercial garbage collection, disposal and recycling services for the City of San Antonio municipal facilities for various city departments. The garbage collection and disposal services consists of the rental equipment of 111 front load containers, (2, 4, 6, and 8 cubic yards), and 19 open top containers and compactors (15, 20, 22, 30, 40 and 42 cubic yards). The containers are serviced for collection and disposal several times a week on scheduled routes and also on an on call basis as determined by the city departments. The City will realize a 16.02% annual average price decrease for commercial garbage collection, disposal and recycling services on the existing 111 front loader accounts, and a 17.85% annual average price decrease on the existing current accounts for open top containers and compactors located throughout the City.
This contract will also provide for the recycling of commercial garbage services for municipal facilities. The contract provides for the container rental, collection, hauling and processing of all recyclable contents received from open top and compactor rental containers, sizes 20 cu yds or greater. The containers shall be serviced for collection and processing of recyclables as determined by the city departments. The City will receive a rebate of 70% of the high side of the applicable range in Official Board Market, OBM, Southwest region rate. The rebate will be calculated by multiplying 70% of the OBM rate, by the amount received of single stream processed recyclables. The contractor will not charge a processing fee or residual fee. The City currently has thirteen locations, consisting of five departments that are receiving recycling services.
The City of San Antonio does not currently possess the vehicles, equipment and containers to provide for this service in-house, thus the commercial garbage collection, disposal and recycling services for municipal facilities has continued to be outsourced.
This contract was procured by means of a Public Health or Safety Exemption.
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 set a 8% Minority/Women Business Enterprise (M/WBE) subcontracting goal. BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio has committed to 8.46% M/WBE subcontractor participation.
In accordance with Local Preference Program, the recommended respondent received 5 points for having a local office in the incorporated San Antonio city limits for the requisite time period, and with the requisite number of employees.
There were no proposals submitted from veteran-owned small business respondents for this contract; therefore, the Veteran-Owned Small Business Preference Program was not applied.
B. This Amendment will extend the term of the current contract for 60 days, December 1, 2017 through January 31, 2018 and will provide continued municipal commercial garbage collection and disposal services and recycling services to City facilities during the transition phase to a new contractor.
ALTERNATIVES:
Should this contract not be approved, commercial garbage collection, disposal and recycling services would not be provided to city departments for their daily operations. The City of San Antonio does not currently possess the vehicles, equipment and containers to provide for this service in-house. The Finance Department, Purchasing Division will be required to re-solicit for commercial garbage disposal services for municipal commercial facilities.
FISCAL IMPACT:
A. This ordinance authorizes a contract with BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio to provide commercial garbage collection, disposal and recycling services for municipal facilities throughout the City of San Antonio for an estimated annual cost of $910,000.00. Funding for this contract is available through the FY 2018 Operating Budget.
B. This ordinance amends the current contract with Waste Management, Inc. to increase the contract by $146,000.00 to continue to provide commercial garbage collection, disposal and recycling services for municipal facilities throughout the City of San Antonio. Funding for this amendment is available through the FY 2018 Operating Budget.
RECOMMENDATION:
A. Staff recommends approval of the contract with BFI Waste Services of Texas, LP, dba Allied Waste Services of San Antonio / Republic Services of San Antonio to provide commercial garbage collection, disposal and recycling services for municipal facilities throughout the City of San Antonio for an estimated annual cost of $910,000.00.
This contract was procured through a discretionary process and a Contracts Disclosure Form is required.
B. Staff recommends approval of an amendment in the amount of $146,000.00 to the current contract with Waste Management, Inc. to provide commercial garbage collection, disposal and recycling services for municipal facilities throughout the City of San Antonio for the period December 1, 2017 through January 31, 2018.
This contract was procured through a discretionary process and a Contracts Disclosure Form is required.