DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
10/18/2018 Annual Contracts
SUMMARY:
An ordinance awarding four contracts to provide the City with commodities and services on an annual basis for the term of the contract, for an estimated annual cost of $728,882.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the term of the contract:
A. Epic Aviation for Bulk Jet-A Fuel, $155,000.00 annually (1 contract, San Antonio Police Department)
B. Ace Spring Service, Inc. for Automotive & Truck Spring Parts & Service, $50,000.00 annually (1 contract, Citywide)
C. ARINC Incorporated for Common Use Passenger Processing System, $73,882.00 increase; $1,848,384.00 total contract value (1 contract, Aviation)
D. CDS Properties, dba Southwest Public Safety for Police Vehicle Graphic Kits, Emergency Equipment Parts, and Installation, Removal and Repair of Equipment, $450,000.00 for the duration of the extension (1 contract, San Antonio Police 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. Epic Aviation for Bulk Jet-A Fuel, $155,000.00 annually, upon award through September 30, 2021, with two, one year renewal options - will provide the San Antonio Police Department Helicopter Detail with a contractor to provide Bulk Jet-A Fuel for use in City owned helicopters. The Contractor will transport and pump bulk Jet-A Fuel into an above ground storage tank located at Stinson Municipal Airport. Approximately 2,000 gallons up to a full tanker load of 7,500 gallons will be pumped each trip with an estimated annual consumption of 70,000 gallons. Contract requirements call for delivery within 24 hours of notice, Monday through Friday and the ability to accept and deliver an order 24 hours a day, 365 days a year.
B. Ace Spring Service, Inc. for Automotive & Truck Spring Parts & Service, $50,000.00 annually, upon award through December 31, 2021 with two, one-year renewal options - will furnish automotive and truck spring parts and service on an annual basis. The City’s fleet consists of over 5,000 vehicles and equipment, which require suspensions to be maintained in a safe working order.
Amendments:
C. Amendment to Annual Contract for Common Use Passenger Processing System, $73,882.00 increase; $1,848,383.00 total contract value, March 1, 2018 through February 28, 2021, with two, one year renewal options - This contract change order will add necessary hardware, and associated services/licenses, components needed to deploy the active network required for the Common Use Passenger Processing System (CUPPS) and provides for ARINC to configure, maintain, and support the equipment.
On March 1, 2018 the City Council approved and authorized Ordinance 2018-03-01-0152 allowing the City to execute a three year contract for a CUPPS that enables multiple airlines, service providers, or other users to share physical check-in or gate podium positions for an estimated total contract value of $1,774,502.00. The ordinance allowed for two, one year renewal options without further action by Council, subject to and contingent upon budget appropriations.
This change order will increase the contract value by $73,882.00 for an estimated total contract value of $1,848,384.00 for the contract period. The change order is in accordance with Local Government Code 252.048.
D. Ratification of amendment to Annual Contract for Police Vehicle Graphic Kits, Emergency Equipment Parts, and Installation, Removal and Repair of Equipment, $450,000.00 for the duration of the extension with CDS Properties, dba Southwest Public Safety, October 1, 2018 through December 31, 2018 - will provide the San Antonio Police Department (SAPD) with a single vendor for the purchase of vehicle graphic kits and required emergency vehicle equipment, such as (gun racks, push bumpers, consoles, light bars, and security curtains); installation, removal and repair services for police equipment. SAPD utilizes the vehicle graphic kits on all marked emergency vehicles for the purpose of identification. Emergency equipment parts and repair services are required to keep police vehicles in optimal operational condition.
Change Order #1 - Amend the existing contract to extend the original term of the contract, as renewed and extended, for up to an additional 90 days (three 30 day periods) under the same terms and conditions.
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. Bulk Jet-A Fuel - 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 goods/supplies contracts, so no preference was applied to this contract.
B. Automotive & Truck Spring Parts & Service - 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 non-professional services, so no preference was applied to this contract.
C. Common Use Passenger Processing System - Not Applicable
D. Police Vehicle Graphic Kits, Emergency Equipment Parts, and Installation, Removal and Repair of Equipment - Not Applicable
ALTERNATIVES:
A. Bulk Jet-A Fuel - Should this contract not be approved, the City would be required to procure jet-a fuel on an as needed basis which may result in higher costs and delays adversely affect timelines of delivery.
B. Automotive & Truck Spring Parts & Service - Should this contract not be approved, the City would be required to provide parts and repairs to the City’s fleet on an as needed basis which may result in higher prices and delays in vehicle repairs.
C. Common Use Passenger Processing System amendment - Should this contract not be approved, the equipment necessary to implement CUPPS will not have the long distance service capability required by the airlines. In the absence of a change order, the implementation will be delayed while another means of purchasing is identified and conducted.
D. Police Vehicle Graphic Kits, Emergency Equipment Parts, and Installation, Removal and Repair of Equipment - Should this contract extension not be approved, SAPD would be required to hire a minimum of eight certified technicians and two supervisors to perform the installation, removal and repair of equipment in the police vehicles. SAPD would be required to lease a facility to perform this type of work for over 650 assigned police vehicles. Additionally, SAPD will be required to purchase materials on an as needed basis, wherein increased costs due to non-contract buying could be realized and cause a delay in delivery times.
FISCAL IMPACT:
A. Bulk Jet-A Fuel - 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.
B. Automotive & Truck Spring Parts & Service - 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.
C. Common Use Passenger Processing System - this Ordinance will approve an increase of $73,882.00 to the contract with ARINC, Inc., to be funded by Airport Capital Improvement funds.
D. Police Vehicle Graphic Kits, Emergency Equipment Parts, and Installation, Removal and Repair of Equipment - this Ordinance will approve an amendment to extend the term of the contract, to be funded within the Department’s adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of these two contracts and two contract amendments 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 a Contract Disclosure Form is required for Item C only.