DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
8/15/2019 Annual Contracts
SUMMARY:
An ordinance awarding seven 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 $2,946,000.00. 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. Mosty Brothers Nursery Inc., SiteOne Landscape Supply Holding LLC, and Sorell Farms LLC dba Bob Wells Nursery for Supply of Trees, $242,000.00 annually (3 contracts, Parks and Recreation Department)
B. Poppe Automotive Warehouse for Automotive & Heavy Equipment Filters, $240,000.00 annually (1 contract, Citywide)
C. San Antonio Belting & Pulley Co. Inc. for Hydraulic, Air, Water, Fuel, & Industrial Hose & Fittings, $250,000.00 annually (1 contract, Solid Waste Management Department)
D. Vulcan, Inc., dba Vulcan Signs, dba Vulcan Aluminum for Aluminum Signs, $1,914,000.00 annually (1 contract, Transportation and Capital Improvements)
E. Casco Industries Inc. for Helmets and Repair Parts for the San Antonio Fire Department, $300,000.00 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.
Contracts procured on the basis of low bid:
A. Mosty Brothers Nursery Inc., SiteOne Landscape Supply Holding LLC, and Sorell Farms LLC dba Bob Wells Nursery for Supply of Trees, $242,000.00 annually, upon award through June 30, 2021 with a one year renewal option - will provide the Parks and Recreation Department with contractors to furnish and deliver a wide variety of 1, 5, 7, and 15 gallon trees on an as-needed basis throughout the City of San Antonio. The list of shade and ornamental tree species includes, but is not limited to, Anacacho Orchid, Bur Oak, Cedar Elm, Chinkapin Oak, Crape Myrtle, Desert-Willow, Eve’s Necklace, Lacey Oak, Live Oak, Mexican Buckeye, Mexican Plum, Mexican Sycamore, Mexican White Oak, Montezuma Cypress, Pecan (native or papershell), Possumhaw, Retama (thornless), Texas Mountain Laurel, Texas Persimmon, Texas Red Oak, and Texas Redbud. The list of fruit species includes, but is not limited to, apple, apricot, avocado, fig, lemon, lime, nectarine, olive, orange, peach, pear, persimmon, plum, and pomegranate. The trees will be utilized by the Parks and Recreation Department to enhance the tree population throughout the City of San Antonio and for tree adoption opportunities for the public.
B. Poppe Automotive Warehouse for Automotive & Heavy Equipment Filters, $240,000.00 annually, September 1, 2019 through September 30, 2022, with two, one year renewal options - will provide the Building and Equipment Services Department - Fleet Services Division, Aviation, Solid Waste Management and Fire with automotive & heavy equipment filters. The specific types of filters used for replacement and preventive maintenance include: automotive and light-duty fuel, air, oil, and transmission filters and medium- and heavy-duty coolant, fuel, air, oil, and transmission filters.
C. San Antonio Belting & Pulley Co. Inc. for Hydraulic, Air, Water, Fuel, & Industrial Hose & Fittings, $250,000.00 annually, upon award through December 31, 2022 with two, one year renewal options - will provide Solid Waste Management Fleet Operations with a contractor to furnish hydraulic, air, water, fuel and industrial hoses and fittings parts for use on approximately 800 refuse trucks, brush and bulky collection trucks, heavy equipment tractors, and tractor trailers to be used by various City departments.
D. Vulcan, Inc., dba Vulcan Signs, dba Vulcan Aluminum for Aluminum Signs, $1,914,000.00 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 aluminum sign blanks; pre-sheeted aluminum sign blanks to be used to fabricate traffic control signs; and finished traffic control signs to be used for immediate installation. This material will be used in the manufacturing and installation of traffic control signs throughout the City.
Health & Safety Exemption:
E. Casco Industries Inc. for Helmets and Repair Parts for the San Antonio Fire Department, $300,000.00 annually, upon award through December 31, 2020 with two, one-year renewal options - will provide the San Antonio Fire Department (SAFD) with Cairns & Brother Helmets and repair parts. These helmets will be utilized by Firefighting personnel to protect their head, neck, and ears from heat as well as absorb shock from falling objects while fighting structural fires.
A trial test was conducted and the Personal Protective Equipment (PPE) committee evaluated and concluded that the Brand Specific MSA Cairnes 1010 and 1044 Helmets met and exceeded the current National Fire Protection Association (NFPA) standards and requirements for SAFD.
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. Supply of Trees - 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.
B. Automotive & Heavy Equipment Filters - 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 goods/supplies contracts, so no preference was applied to this contract.
C. Hydraulic, Air, Water, Fuel, & Industrial Hose & Fitting - 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 service contracts, so no preference was applied to this contract.
D. Aluminum Signs - 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.
E. Helmets and Repair 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.
This award is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Supply of Trees - Should this contract not be approved, Parks and Recreation Department would be required to procure trees on an as needed basis. The Department will not realize fixed pricing and order consolidation cost savings associated with having a term contract.
B. Automotive & Heavy Equipment Filters - Should this contract not be approved, the City would be required to procure items on an as-needed basis. This would increase down time on equipment, thus hindering timely completion of maintenance and repair.
C. Hydraulic, Air, Water, Fuel, & Industrial Hose & Fitting - Should this contract not be approved, the City will be required to purchase various hoses and fitting parts on an as needed basis which could result in higher costs and increased down time of vehicles and equipment, thus delaying timely completion of maintenance and repair.
D. Aluminum Signs - 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.
E. Helmets and Repair Parts - Should this contract not be approved, the Fire Department could experience increased delivery times for essential firefighting gear. This could result in firefighters not being properly equipped to perform their job fighting fires.
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 Health & Safety Exemption, and Contract Disclosure Forms are not required.