DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
3/8/2018 Annuals
SUMMARY:
An ordinance awarding three 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 $1,289,000.00. 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. Texas Star Supply, LLC for Asphalt Emulsion Sealcoat Material, $125,000.00 annually (1 contract, Transportation and Capital Improvements)
B. Clean Harbor Environmental Services, Inc. for Incineration Services, $64,000.00 annually (1 contract, Citywide)
C. GT Distributors, Inc. for Ammunition for SAPD and other Law Enforcement, $1,100,000.00 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. Texas Star Supply, LLC for Asphalt Emulsion Sealcoat Material, $125,000.00 annually, upon award through March 31, 2019, with one, one year renewal option - will provide the Transportation and Capital Improvements Department, Streets Maintenance Division with a vendor to furnish asphalt pavement sealer materials. These paving materials are used for the construction and repair of streets for pavement preservation throughout the City.
Public Health or Safety Exemption:
B. Clean Harbor Environmental Services, Inc. for Incineration Services, $64,000.00 annually, upon award through December 31, 2021, with two, one year renewal options - will provide the City of San Antonio with vendor services for incineration. The vendor shall incinerate all items provided by the City immediately upon arrival at the Vendor’s location.
C. GT Distributors, Inc. for Ammunition for SAPD and Other Law Enforcement, $1,100,000.00 annually, upon award through March 31, 2021 - will provide the City of San Antonio Police, Aviation Police, Fire Arson Bureau and Parks Police Departments with brand specific ammunition and specialty ammunition. This ammunition is used by law enforcement officers in the field and for cadet and in-service training.
Under the Collective Bargaining Agreement, the Labor Relations Committee (LRC) approves all Police equipment. The San Antonio Police Department's firearms staff conducted ammunition testing and submitted a list of ammunition recommended to the Chief of Police. The ammunition listed is specific to manufacturer, description, caliber, bullet type and part number, with no comparable substitutions.
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. Asphalt Emulsion Sealcoat Material - 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 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 goods/supplies contracts, so no preference was applied to this contract.
B. Incineration Services - 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; therefore, the Local Preference Program was not applied.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
C. Ammunition for SAPD and other Law Enforcement - 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; 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.
ALTERNATIVES:
A. Asphalt Emulsion Sealcoat Material - Should this contract not be approved, Transportation and Capital Improvements Department will be required to procure materials on an as needed basis where increased costs and delivery times could occur and result in delays in the completion of city projects.
B. Incineration Services - Should this contract not be approved, City will be required to submit a request each time services are required. Without a contract, the City could experience inconsistent pricing and potential delays in service.
C. Ammunition for SAPD and other Law Enforcement - Should this contract not be approved, the City will be required to purchase ammunition on an as needed basis, wherein increased costs due to non-contract buying could be realized, as well a delay in delivery times.
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 three 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 public health or safety exemption, and Contract Disclosure Forms are not required.