DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
8/22/2019 Annual Contracts
SUMMARY:
An ordinance awarding six 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 $347,200.00. 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. Cooper Equipment Co. for Etnyre Equipment Parts, $85,200.00 annually (1 contract, Solid Waste Management Department)
B. Reliance Truck and Equipment for Wayne Refuse Truck Body Parts, $36,000.00 annually; $180,000.00 contract period (1 contract, Solid Waste Management Department)
C. Life Technologies Corporation for SAMHD-7500 Fast DX Service Agreement, $19,000.00 Year 1; $58,000.00 contract period (1 contract, San Antonio Metropolitan Health District)
D. Johnson Controls, Inc. for City Tower Chiller Maintenance, $75,000.00 annually (1 contract, Building and Equipment Services)
E. Chemsearch, a division of NCH Corporation, for a Change Order for Annual Contract for Industrial Water Treatment, $42,000.00 increase Year 1 (1 contract, Building and Equipment Services)
F. EMR Elevator, Inc. for Change Order for Annual Contract for Elevator and Escalator Preventive Maintenance for Various Locations, $90,000.00 annual increase; $692,000.00 annual contract value (1 contract, Building and Equipment Services)
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. Cooper Equipment Co. for Etnyre Equipment Parts, $85,200.00 annually, upon award through June 30, 2022 with two, one year renewal options - will provide Solid Waste Management, Fleet Operations Division, with a contractor to furnish replacement parts for Etnyre equipment. The Department is required to provide repairs to asphalt equipment utilized in street repairs.
B. Reliance Truck and Equipment for Wayne Refuse Truck Body Parts, $36,000.00 annually; $180,000.00 contract period, upon award through September 30, 2022, with two, one year renewal options - will provide Solid Waste Management, Fleet Operations Division, with a contractor to furnish heavy-duty replacement parts for Wayne Equipment for the purpose of providing needed refuse truck body parts for in-house repairs.
Sole Source:
C. Life Technologies Corporation for SAMHD-7500 Fast DX Service Agreement, $19,000.00 Year 1; $58,000.00 contract period, February 20, 2019 through February 19, 2022 - This contract with Life Technologies Corporation (LT) will provide maintenance and service support for Applied Biosystems® 7500 FAST DX instruments for the San Antonio Metropolitan Health District (SAMHD). The City’s SAMHD Laboratory Services Branch will be the end user of this service agreement.
The Metro Health Laboratory Response Network (LRN) Laboratory effectively serves 29 counties in its jurisdiction and has acquired in previous grant cycles two Applied Biosystems (AB) 7500 Fast DX instruments. To satisfy the Centers for Disease Control and Prevention performance measures, the Metro Health LRN Laboratory must maintain service agreements for all LRN required equipment. These instruments are used to identify the DNA or RNA present in environmental and clinical samples of bioterrorism agents, influenza types and subtypes, and other high consequence biological agents e.g. Ebola, etc.
These items are being purchased as Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
Cooperative:
D. Johnson Controls, Inc. for City Tower Chiller Maintenance, $75,000.00 annually, upon award through July 31, 2020, with a one-year renewal option - will provide Building and Equipment Services (BES) with a contract for the preventive maintenance and repair of two 400 ton chillers at the former Frost Bank Tower, hereinafter referred to as City Tower. This service is needed by BES to maintain two chiller systems year round. Services will be performed on a monthly basis, and on an on-call basis for immediate needs. Monthly and annual maintenance for the chiller systems includes inspection of parts and fluid levels in component such as compressors, controls, pumps and condensers. The Contractor will also perform periodic operational tests on equipment to ensure it is in proper working order.
This purchase will be made in accordance with the Texas Local Government Purchasing Cooperative (BuyBoard) passed on Ordinance No. 97097, dated January 30, 2003.
Amendments:
E. Chemsearch, a division of NCH Corporation, for a Change Order for Annual Contract for Industrial Water Treatment, increase year 1 $42,000.00; total contract increase $123,000.00, October 1, 2019 through December 31, 2020 with three, one year renewal options - This Change Order will provide the Building and Equipment Services Department with a Contractor to provide the necessary labor, materials, and chemicals required to perform scheduled preventive maintenance, chemical treatment, and repairs to the industrial water equipment located at the City Tower. This Change Order will also authorize the Contractor to remove existing chemical control and feeder equipment and provide and install new non-proprietary chemical control and feeder equipment for the boiler and chilled water system at the City Tower for a one-time cost of $15,239.46.
On May 2, 2019 City Council approved Ordinance 2019-05-02-0347 authorizing the City to execute a two year contract with three, one year renewal options for Industrial Water Treatment services at various facilities throughout the City for an estimated amount of $92,000.00 annually.
The net result of this Change Order will increase the contract value by $42,000.00 for Year 1 which includes a one-time equipment purchase of $15,239.46, and approximately $27,000.00 annually thereafter for water treatment chemicals and services for the City Tower.
F. EMR Elevator, Inc. for Change Order for Annual Contract for Elevator and Escalator Preventive Maintenance for Various Locations, $90,000.00 increase annually; $692,000.00 annual contract value, August 1, 2019 through September 30, 2020 with two, one year renewal options - This Change Order will provide the Building and Equipment Services Department with a Contractor to provide inspection, preventive maintenance, repair services, and phone monitoring for thirteen elevators and two escalators located at the City Tower. Services will be performed in accordance with the Texas Department of Licensing & Regulation standards and the American National Standards Institute Regulations for elevators and escalators.
On December 7, 2017 City Council approved Ordinance 2017-12-07-0930 authorizing the City to execute a three year contract with two, one year renewal options for elevator and escalator maintenance at various City locations for an estimated amount of $601,574.00 annually.
The net result of Change Order 3 will increase the contract value by approximately $90,000.00 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. Cooper Equipment Co. for Etnyre 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 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.
B. Wayne Refuse Truck Body Parts -
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 goods/supplies contracts, so no preference was applied to this contract.
C. SAMHD -7500 Fast DX Service Agreement -
This contract is exempt from competitive bidding and is excluded from the scope of the SBEDA program.
This contract 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.
D. City Tower Chiller Maintenance -
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.
This contract 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.
E. Change Order for Annual Contract for Industrial Water Treatment -
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 contract 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.
F. Change Order for Annual Contract for Elevator and Escalator Preventive Maintenance for Various Locations -
This contract 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.
ALTERNATIVES:
A. Etnyre Equipment Parts - 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.
B. Wayne Refuse Truck Body Parts - Should this contract not be approved, the department will be required to process individual procurements as needs arise. As a result, processing spot purchases would delay the timely repair to heavy-duty equipment and the department will not realize the cost savings customarily associated with long-term agreements.
C. SAMHD -7500 Fast DX Service Agreement - Should this contract not be approved, SAMHD would not be able to continue to satisfy the Centers for Disease Control (CDC) performance measures; specifically, PHEP Capability 12, which requires SAMHD to maintain service agreements for all LRN required equipment.
D. City Tower Chiller Maintenance - Should this contract not be approved, the department will be required to process individual procurements resulting in increased costs due to non-contract rates. The integrity and functionality of the chillers could be compromised.
E. Change Order for Annual Contract for Industrial Water Treatment - Should this contract not be approved, the Department would be required to process individual procurements to provide water treatment, maintenance and repair services to the boiler and chilled water system at City Tower on an as needed basis, thus affecting the timeliness of services to the equipment. The department does not have the staff to perform these services in-house. Processing individual procurements will affect the cost of services due to non-contract pricing.
F. Change Order for Annual Contract for Elevator and Escalator Preventive Maintenance for Various Locations - Should this contract not be approved, the Department would be required to process individual procurements to provide maintenance and repair services to the elevators and escalators at City Tower on an as needed basis, thus affecting the timeliness of services to the equipment. The department does not have the staff to perform these services in-house. Processing individual procurements will affect the cost of services due to non-contract pricing.
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 contingent 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, sole source, cooperative purchasing, and by amendment, therefore Contract Disclosure Forms are not required.