DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
8/9/2018 Annuals
SUMMARY:
An ordinance awarding two 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 $232,000.00. 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. Jaco Industrial Supply, Inc. for Orange Citrus Solvent Degreaser, $47,000.00 annually; $235,000.00 contract period (1 contract, Transportation and Capital Improvements)
B. SAT Radio Communications, LTD for Emergency Lights and Accessories, $185,000.00 annually (1 contract, San Antonio Fire Department)
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. Jaco Industrial Supply, Inc. for Orange Citrus Solvent Degreaser, $47,000.00 annually; $235,000.00 contract period, upon award through December 31, 2021, with two additional one-year renewal options - will provide the Transportation and Capital Improvements Department, Streets Division, with a citrus solvent product in 55 gallon drums. This citrus cleaning solvent will be utilized for the removal of tar and asphalt from the Transportation and Capital Improvements Department pothole patch trucks, tools and equipment.
Public Health of Safety Exemption:
B. SAT Radio Communications, LTD for Emergency Lights and Accessories, $185,000.00 annually, October 1, 2018 through March 31, 2021 with two, one year renewal options - will provide the San Antonio Fire Department (SAFD) with a contract for the purchase of Emergency Vehicle Lights and Accessories. This contract will allow the Services Division to purchase the emergency lights and accessories necessary for new installs and to make repairs to the emergency vehicles in the fleet.
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. Orange Citrus Solvent Degreaser -
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 Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
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.
B. Emergency Lights and Accessories -
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 (VOSB) Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. SAT Radio Communications, LTD is a Small Business Enterprise (SBE) firm that will be self-performing the 9% Small Business Enterprise (SBE) subcontracting goal.
ALTERNATIVES:
A. Orange Citrus Solvent Degreaser - Should this contract not be approved, the Transportation and Capital Improvements Department would be required to purchase materials on an as needed basis where increased costs and delivery times would be realized delaying the completion of ongoing maintenance and service of the vehicles and equipment.
B. Emergency Lights and Accessories - Should this contract not be approved, the SAFD staff would be required to solicit bids for these parts on an as needed basis which would be time consuming and could result in delivery delays for emergency equipment. In addition, the City would not realize cost savings customarily associated with long term agreements.
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 two 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.