DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
4/19/2018 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 $1,061,000.00. 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. Grande Truck Center for Volvo/Mack/Western Star & Medium/Heavy Duty Ford Truck Parts, $325,000.00 annually (1 contract, Solid Waste Management Department)
B. ZW USA, Inc. dba Mutt Mitt for Pet Waste Bags, $36,000.00 annually; $180,000.00 contract term (1 contract, Parks and Recreation Department)
C. Graybar Electric Company for amendment to Electrical and Lighting Parts and Supplies contract, $700,000.00 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. Grande Truck Center for Volvo/Mack/Western Star & Medium/Heavy Duty Ford Truck Parts, $325,000.00 annually, upon award through September 30, 2021, with two, one year renewal options - will provide the Solid Waste Management Department (SWMD) with parts for Heavy Duty Volvo, Mack, Western Star and Medium and Heavy Duty Ford Trucks (E350, F350 and above). This contract will provide parts for in-house repairs only. These parts are primarily utilized on Solid Waste Management Department’s refuse collection trucks.
B. ZW USA, Inc. dba Mutt Mitt for Pet Waste Bags, $36,000.00 annually; $180,000.00 contract term, upon award through March 31, 2021, with two, one year renewal options - will provide the Parks and Recreation Department with a vendor to provide Pet Waste Bags for Park locations throughout the City on an as-needed basis. The pet waste bags will be utilized by the department and placed in designated dog park dispensers located at various parks throughout the City. The Pet Waste Bags will allow pet owners to safely pick up their pet waste and dispose of it properly.
Amendment:
C. Graybar Electric Company for an amendment to the Electrical and Lighting Parts and Supplies contract, $700,000.00 annually, upon award through March 31, 2019 - an amendment to City Ordinance No. 2016-06-09-0429, passed on June 9, 2016 that established a contract for the purchase and delivery of electrical and lighting parts and supplies citywide. This amendment adds an additional year to the contract term and revises the original U.S. Communities contract number.
This purchase is made in accordance with the US Communities Cooperative Program passed through Ordinance 98797 dated 2/12/2004; US Communities, Electrical, Lighting, Data/Communication, Networking & Security Contract # EV-2370 that expires January 31, 2023.
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. Volvo/Mack/Western Star & Medium/Heavy Duty Ford Truck Parts - 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 applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. Pet Waste Bags - This contract is within the scope of the SBEDA Program. However, due to lack available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tools to this contract.
In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business (VOSB) Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Amendment to Electrical and Lighting Parts and Supplies contract -
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business (VOSB) Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Volvo/Mack/Western Star & Medium/Heavy Duty Ford Truck Parts - Should this contract not be approved, SWMD will be required to procure parts for Heavy Duty Volvo, Mack, Western Star and Medium and Heavy Duty Ford Trucks (E350, F350 and above) on an as-needed basis which may result in higher pricing and delays in repairing equipment.
B. Pet Waste Bags - Should this contract not be approved, the department would have to procure the pet waste bags on an as needed basis wherein increased costs due to non-contract pricing could be realized.
C. Amendment to Electrical and Lighting Parts and Supplies contract - Should this amendment not be approved, City departments would be required to procure electrical and lighting parts and supplies on an as-needed basis which could lead to delays in response time of maintenance and repair requests. In addition, the cost of parts and supplies may be adversely affected from not aggregating requirements Citywide.
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 amendment, and Contract Disclosure Forms are not required.