DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
5/30/2019 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 $559,000.00. 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. Litho Press, Inc. for Solid Waste Management Department Services Guides, $65,000.00 annually (1 contract, Solid Waste Management Department)
B. Ennis Flint, Inc. for Hot Applied Thermoplastic and Permanent Prefabricated Pavement Markings, $494,000.00 annually (1 contract, Transportation and Capital Improvements)
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. Litho Press, Inc. for Solid Waste Management Department Services Guides, $65,000.00 annually, upon award through December 31, 2020 with two, one year renewal options - will provide the purchase of Solid Waste Services Guide Packages on as needed basis for the City of San Antonio Solid Waste Management Department (SWMD). The services guides will be utilized in assisting San Antonio residents to know what specific items can or cannot be accepted according to the City’s recycling, organics and garbage programs.
B. Ennis Flint, Inc. for Hot Applied Thermoplastic and Permanent Prefabricated Pavement Markings, $494,000.00 annually, upon award through December 31, 2022, with two, one-year renewal options - will provide the Transportation and Capital Improvements Department, Traffic Management Division with a contractor to furnish hot applied thermoplastic and permanent prefabricated pavement marking materials utilized throughout the City. This material is used to mark directional legends and symbols in intersections for school cross walk routes and bicycle lanes in neighborhoods where appropriate traffic control is needed.
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. Solid Waste Management Department Services Guides - 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.
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 service contracts, so no preference was applied to this contract.
B. Hot Applied Thermoplastic and Permanent Prefabricated Pavement Markings - 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 Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Solid Waste Management Department Services Guides - Should this contract not be approved, the department will be required to purchase services guides on an as needed basis, wherein increased costs due to non-contract buying could be realized.
B. Hot Applied Thermoplastic and Permanent Prefabricated Pavement Markings - Should this contract not be approved, the Transportation and Capital Improvements Department, Traffic Management Division would be required to solicit quotes on an as needed basis, potentially resulting in increased costs and possible delays in completion of City projects.
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 low bid and Contract Disclosure Forms are not required.