DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
5/16/2019 Annual Contracts
SUMMARY:
An ordinance awarding two 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 $769,000.00. This ordinance provides the procurement of the following items, as needed, and dependent on the Department's available budget, for the term of the contract:
A. Cintas Corporation for Purchase of Uniforms and Accessories, $750,000.00 annually (1 contract, Citywide)
B. Selrico Services, Inc. for Amendment to Annual Contract for Custodial Services - Various Facilities, $19,000.00 increase; $1,119,000.00 annually (1 contract, Development Services Department, Information Technology Services Department, Center City Development Operations, Transportation and Capital Improvements Department, and Solid Waste Management 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.
Cooperative:
A. Cintas Corporation for Purchase of Uniforms and Accessories, $750,000.00 annually, upon award through October 31, 2020, with one, one-year renewal option - will provide various City of San Antonio departments with uniforms, safety footwear and accessories for staff in supporting roles such as custodial and maintenance, kitchen/chef, business/administration staff, and other trades. The uniform garments include pants, shorts, denim jeans, polo shirts, woven work shirts, woven commercial shirts, dress shirts and blouses, lightweight, mid-weight, and insulated heavy weight outerwear, vests, coveralls, and safety footwear. This contract offers uniforms, accessories and footwear from leading manufacturers such as 511 Tactical, Red Kap, Gildan, Port Authority, Cintas, Timberland and Wolverine at a predetermined discount.
This procurement is made utilizing the US Communities cooperative contract number R-BB-19002 and will be made in accordance with the Interlocal Agreement number 97097 passed on 1/30/2003. This agreement will provide a non-exclusive contract for the purchase of uniforms, safety footwear, and accessories.
Council previously approved use US Communities cooperative contract number 12-JLH-011C to purchase uniforms and accessories for the period of January 18, 2018 through September 30, 2019 with the option to renew for one additional year. US Communities chose not to negotiate an extension this agreement and instead rebid. Cintas Corporation was awarded the resultant contract and discounts offered to the City remain consistent with the prior agreement.
Amendment:
B. Selrico Services, Inc. for Amendment to Annual Contract for Custodial Services - Various Facilities, $19,000.00 increase annually; $1,119,000.00 annually, upon award through October 31, 2023 with two, two-year renewal options - On December 6, 2018 City Council approved Ordinance 2018-12-06-0958 authorizing the City to execute a three year contract with two, one year renewal options for custodial services at various facilities throughout the City for an estimated amount of $1,100,000.00 annually. These two change orders will provide custodial services at the following locations not previously included in the contract: Deco Store Front for Development Services Department, Brooks City Base Building 912 for Information Technology Services Department, Culebra Complex Building 4 for Transportation and Capital Improvements Department, and City Marina for the Center City Development Operations Department. Additionally, the square footage for custodial services provided at Warehouse Building 6 for the Solid Waste Management Department will be decreased by 1,580 square feet.
The contractor will clean the facilities on varying days and times in accordance with the service level and specified hours for each facility. The contractor will ensure the facilities are continuously and uniformly cleaned, orderly and attractive for patrons. The custodial services include, but are not limited to, general cleaning, disinfecting, trash removal, floor cleaning, and floor maintenance. The contractor shall provide all cleaning supplies and equipment to perform the services, as well as products to re-stock facilities including restrooms.
The net result of these change orders will increase the contract value by approximately $19,000.00 annually.
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. Purchase of Uniforms and Accessories - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. Cintas Corporation has committed to satisfying the 10% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal.
The recommended award is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Amendment to Annual Contract for Custodial Services - Various Facilities
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Purchase of Uniforms and Accessories - Should this contract not be approved, the City of San Antonio will be required to process individual procurements on an as needed basis. Therefore, the ordering departments will not realize the cost savings of utilizing a cooperative agreement.
B. Amendment to Annual Contract for Custodial Services - Should this contract not be approved, the City will be required to rent equipment on an as needed basis. Lack of contract could increase the time necessary to obtain rental equipment, thus negatively impacting completion of Transportation and Capital Improvement, Parks and Recreation, Convention and Sports Facilities and Solid Waste Management Department projects requiring heavy construction equipment.
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 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 cooperative purchasing and amendment, and Contract Disclosure Forms are not required.