DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/20/2018 Annuals
SUMMARY:
An ordinance awarding five 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 $825,000.00. 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. Air Flite, Inc. for SAPD Helicopter: Parts, Engines and Repairs, $400,000.00 annually (1 contract, San Antonio Police Department)
B. Anderson Machinery Company, Cooper Equipment Co., and Waukesha Pearce Industries LLC for Light, Medium & Heavy Duty Equipment Parts, $380,000.00 annually (3 contracts, Solid Waste Management Department)
C. Paints4Less for Recycled Paint, $45,000.00 annually; $225,000.00 contract period (1 contract, Code Enforcement 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.
Contracts procured on the basis of low bid:
A. Air Flite, Inc. for SAPD Helicopter: Parts, Engines and Repairs, $400,000.00 annually, upon award through August 31, 2021 with two, one year renewal options - will provide the City of San Antonio Police Department with an annual contract to provide helicopter parts and repair services for its fleet of helicopters, turbine engines and accessories. The helicopters are used in various search, rescue, and support of overall public safety missions for Homeland Security and the AACOG region in mutual aid requests.
B. Anderson Machinery Company, Cooper Equipment Co., and Waukesha Pearce Industries LLC for Light, Medium & Heavy Duty Equipment Parts, $380,000.00 annually, upon award through December 31, 2021, with two, one year renewal options - will furnish parts for in-house repairs performed by the Solid Waste Management Department Fleet Division. This contract will be maintained and utilized by the Solid Waste Management Department for the purchase of parts for: Bomag milling machines, Gradall excavators, Komatsu crawler dozers, Cimline paving equipment, and Liugong loaders.
C. Paints4Less for Recycled Paint, $45,000.00 annually; $225,000.00 contract period, October 1, 2018 through September 30, 2021 with two, one year renewal options - will provide recycled paint of various colors in 5 gallon containers for the Code Enforcement Department Field Services Division on an as needed basis. The recycled paint requires a minimum of 50% post- consumer content, in keeping with the City of San Antonio Green Initiative, and will be used to paint over graffiti on retaining walls, walkways, underpasses and chronically tagged privacy fences.
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. SAPD Helicopter: Parts, Engines and Repairs - 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 for this contract; 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.
B. Light, Medium & Heavy Duty Equipment 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 awards are 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 (VOSB) Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Recycled Paint - This contract is within the scope of the SBEDA Program. However, due to lack of available firms and/or subcontracting opportunities, the Goal Setting Committee was unable to apply a SBEDA tool to this contract.
There were no bids submitted from local bidders for this contract; therefore, 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.
ALTERNATIVES:
A. SAPD Helicopter: Parts, Engines and Repairs - Should this contract not be approved, the San Antonio Police Department would be required to procure services on an as-needed basis, wherein increased costs and delivery times due to non-contract buying could be realized. Lack of a contract could affect timely repairs of the helicopters, thus impacting mobilization to support various search and rescue missions. Also, support of public safety missions for Homeland Security and in AACOG region mutual aid requests would be compromised.
B. Light, Medium & Heavy Duty Equipment Parts - Should this contract not be approved, the Solid Waste Management Department would be required to procure Bomag Milling Machines, Gradall, Komatsu, Cimline, and Liugong Loader parts on an as-needed basis which could result in higher pricing and delays in repairing this equipment.
C. Recycled Paint - Should this contract not be approved, the Code Enforcement Department would be required to purchase recycled paint on an as needed basis, wherein increased costs due to non-contract purchasing could be realized and cause a delay in the delivery timeline.
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 five 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 Contract Disclosure Forms are not required.