DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
5/17/2018 Annuals
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 $1,943,000.00. 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. Texan Waste Equipment Inc. dba Heil of Texas and Reliance Truck & Equipment, Ltd. for Refuse Trucks Body Parts, $1,250,000.00 annually (2 contracts, Solid Waste Management Department)
B. Fox Truck World, LLC for Rotobec Grappler Parts, $60,000.00 annually (1 contract, Solid Waste Management Department)
C. Hesselbein Tire Southwest for Police Pursuit Tires, $633,000.00 annually (1 contract, Building and Equipment Services)
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. Texan Waste Equipment Inc. dba Heil of Texas and Reliance Truck & Equipment, Ltd. for Refuse Trucks Body Parts, $1,250,000.00 annually, upon award through June 30, 2021, with two, one year renewal options - will furnish Heil, Pak-Mor, and New Way King Cobra refuse trucks body parts in accordance with the specifications listed in the IFB. This contract will be utilized for buying parts for in-house repairs only, and will provide all parts needed for the body and the operating mechanism for the body.
B. Fox Truck World, LLC for Rotobec Grappler Parts, $60,000.00 annually, upon award through September 30, 2021, with two, one year renewal options - will furnish Rotobec grappler parts for in house maintenance and repairs of the 37 Rotobec grapplers currently in the City’s fleet. These grapplers are used for curbside brush and bulky collection for City residents and for storm drain, low water crossing, and right of way pickup.
Cooperative:
C. Hesselbein Tire Southwest for Police Pursuit Tires, $633,000.00 annually, upon award through February 28, 2021 - will provide the City of San Antonio with police pursuit tires that will support the City’s fleet of approximately 700 police pursuit vehicles including sedans and SUVs. The tires furnished under this contract will conform to the latest Department of Transportation requirements for police high speed tires.
This procurement is made utilizing Buy Board Cooperative Agreement contract number 553-18 and will be made in accordance with Interlocal Agreement number 97097 passed on 1/30/2003. The City will realize approximately a 4% cost savings through cooperative pricing in comparison to the recent bid pricing.
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. Refuse Trucks Body 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 bidders, who are also local businesses. 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. Rotobec Grappler 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.
C. Police Pursuit Tires - 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 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. Refuse Trucks Body Parts - Should this contract not be approved, the department will be required to procure Heil, Pak-Mor and New Way King Cobra refuse trucks body parts on an as-needed basis which may result in higher pricing and delays in repairing refuse collection bodies.
B. Rotobec Grappler Parts - Should this contract not be approved, the department will be required to procure Rotobec Grappler parts on an as-needed basis which may result in higher pricing and delays in repairing grapplers.
C. Police Pursuit Tires - Should this contract not be approved, departments will be required to purchase police pursuit tires on an as-needed basis which may result in higher pricing and delays in delivery of replacement tires.
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 purchasing, and Contract Disclosure Forms are not required.