DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
1/18/2018 Annual Contracts
SUMMARY:
An ordinance awarding four 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 $595,400.00. This ordinance provides the procurement of the following item, as needed, and dependent on the Department's available budget, for the term of the contracts:
A. BWI Companies, Inc., KBW Supply, and Lowe’s Home Centers, LLC for Horticultural Supplies and Tools for San Antonio Airport System, $43,400.00 annually; $217,000.00 total contract term (3 contracts, Aviation Department)
B. Cintas Corp. for Purchase of Uniforms and Accessories, $552,000.00 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.
Contracts procured on the basis of low bid:
A. BWI Companies, Inc., KBW Supply, and Lowe’s Home Centers, LLC for Horticultural Supplies and Tools for San Antonio Airport System, $43,400.00 annually; $217,000.00 total contract term, upon award through June 30, 2021 with two, one year renewal options - will provide the Aviation Department with suppliers to furnish and deliver a wide variety of horticultural supplies and tools to be used in maintaining landscaped areas throughout the San Antonio Airport System.
Cooperative:
B. Cintas Corp. for Purchase of Uniforms and Accessories, $552,000.00 annually, upon award through September 30, 2019, with one, one-year renewal option - will provide various City of San Antonio departments with uniforms, safety footwear and accessories for staff in supporting roles such as custodial and maintenance, kitchen/chef, business/administration staff, and other trades. The uniform garments include pants, shorts, denim jeans, polo shirts, woven work shirts, woven commercial shirts, dress shirts and blouses, lightweight, mid-weight, and insulated heavy weight outerwear, vests, coveralls, and safety footwear.
This procurement is made utilizing the US Communities cooperative contract number 12-JLH-011C and will be made in accordance with the Interlocal Agreement number 97097 passed on 1/30/2003. This agreement will provide a non-exclusive contract for a wide variety of manufacturers of uniforms, safety footwear, and accessories.
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. Horticultural Supplies and Tools - 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.
This recommended award is in accordance with the Local Preference Program. As a result, Item 5m was awarded to Lowes Home Centers, LLC at an additional annual cost to the City of $3.15. Lowes Home Centers, LLC, the recommended local bidder, submitted a bid of $178.65 for item 5m and is within 3% of BWI-San Antonio, the lowest non-local bidder, who submitted a bid of $175.50 for this item.
The Veteran-Owned Small Business Preference Program does not apply to non-professional services, so no preference was applied to this contract.
B. Purchase of Uniforms and Accessories - 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 15% Minority/Women Business Enterprise (M/WBE) subcontracting goal. Cintas Corp. has committed to 15% M/WBE subcontractor participation.
This award is an exception to 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.
ALTERNATIVES:
A. Horticultural Supplies and Tools - Should these contracts not be approved, the Aviation Department will not have reliable and continuous suppliers for the purchase of horticultural supplies and tools necessary for maintaining the landscape at the San Antonio Airport System.
B. Purchase of Uniforms and Accessories - Should this contract not be approved, the City of San Antonio will be required to process individual procurements on an as needed basis. Therefore, the ordering departments will not realize the cost savings of utilizing a cooperative agreement.
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 these four 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 cooperative and Contract Disclosure Forms are not required.