DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/12/2019 Annual Contracts
SUMMARY:
An ordinance awarding eight 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 $538,859.00. 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. Pied Piper Pest Control for Pest Control Services, $45,000.00 annually; $225,000.00 contract period (1 contract, Building and Equipment Services)
B. Associated Supply Company Inc. for Case and Caterpillar Equipment Parts, $120,000.00 annually (1 contract, Solid Waste Management)
C. Insurance Claim and Appraisal Service for Vehicle Appraisal Services, $90,000.00 annually (1 contract, Building and Equipment Services, Aviation and Solid Waste Management Department)
D. Impact Recovery Systems for Delineators and Accessories, $79,000.00 annually (1 contract, Transportation and Capital Improvements)
E. American Traffic Safety Materials, Inc. and Avery Dennison Corp. for Traffic Sign Material, $36,000.00 annually; $180,000.00 total contract value (2 contracts, Transportation and Capital Improvements)
F. EKF Diagnostics dba Stanbio Laboratory for Cuvettes and Supplies, $70,000.00 annually (1 contract, San Antonio Metropolitan Health District)
G. ARINC Incorporated, a wholly owned subsidiary of Rockwell Collins, Inc. for Common Use Passenger Processing System, $98,859.00 increase; $1,947,242.00 total contract value (1 contract, Aviation)
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. Pied Piper Pest Control for Pest Control Services, $45,000.00 annually; $225,000.00 contract period, upon award through December 31, 2021 with two, one-year renewal options - will provide pest control services at various facilities for the Building & Equipment Services Department. The pest control program will establish a monthly pest control program that will effectively control the infestation of various pests including all insects, but not limited to, cockroaches, ants (including fire, pharaoh, mound and crazy type), silverfish, arachnids including scorpions, rodents including mice and rats, fleas, wasps, flies, gnats, and hornets in all areas including common, water, office and restricted areas, warehouse spaces, building interior and exteriors. This contract also provides services on an as needed basis that are not included in the monthly pest contract maintenance program such as: ant treatment outside the monthly services program, removal of stinging pests, and flea and tick treatment.
B. Associated Supply Company Inc. for Case and Caterpillar Equipment Parts, $120,000.00 annually, upon award through September 30, 2022, with two, one year renewal options - will provide the Solid Waste Management, Fleet Operations Division, with replacement parts for in-house repairs of Case construction equipment units that include wheel loaders, skid steers, and motor graders. This contract will be maintained by the Solid Waste Management Department and will be utilized by Transportation and Capital Improvements and Parks and Recreation departments. There are thirty-nine Case construction equipment units in the City’s fleet.
C. Insurance Claim and Appraisal Service for Vehicle Appraisal Services, $90,000.00 annually, upon award through August 31, 2022 with two, one year renewal options - will provide the Building and Equipment Services Department, Fleet Operations (BESD), Aviation Department, and Solid Waste Management Department, Fleet Operations (SWMD) with a contractor to provide vehicle appraisal services for damaged vehicles, in conjunction with existing City collision repair contracts.
D. Impact Recovery Systems for Delineators and Accessories, $79,000.00 annually, upon award through December 31, 2022 with two, one year renewal options - will provide the Transportation and Capital Improvements (TCI) Department delineators and accessories for street and curb directional marking. All delineators and accessories shall meet the State of Texas Department of Transportation (TxDOT) specifications for highway traffic - DMS 4400 Flexible Delineator and Object Marker Posts (Embedded and Surface-Mount Types) effective April 2017.
E. American Traffic Safety Materials, Inc. and Avery Dennison Corp. for Traffic Sign Material, $36,000.00 annually; $180,000.00 total contract value, upon award through December 31, 2022 with two, one-year renewal options - will provide the Transportation & Capital Improvements Department with a contractor to furnish and deliver various traffic sign materials for the fabrication of street signs and directional markings. All recommended sign face materials are accepted for highway traffic signs used by the State of Texas, Department of Transportation (TxDOT) and meet specifications DMS-8300.
F. EKF Diagnostics dba Stanbio Laboratory for Cuvettes and Supplies, $70,000.00 annually, upon award through June 30, 2023 with a one year renewal option - This contract will provide the San Antonio Metro Health Department (SAMHD) with microcuvettes and accessories to be used in conjunction with existing Hemopoint H2 meters. The microcuvettes and meters are used by the SAMHD for testing hemoglobin levels in determining eligibility for WIC Program benefits.
Amendment:
G. ARINC Incorporated, a wholly owned subsidiary of Rockwell Collins, Inc. for Common Use Passenger Processing System, $98,859.00 increase; $1,947,242.00 total contract value, March 1, 2018 through February 28, 2021, with two, one year renewal options - 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 Common Use Passenger Processing System (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.
On October 18, 2018 City Council approved and authorized Ordinance 2018-10-18-0822 increasing the contract value by $73,882.00 for an estimated total contract value of $1,848,383.00 for the contract period. This change order added necessary hardware, associated services/licenses, and components needed to deploy the active network for the CUPPS.
This change order will exercise options in the existing contract which allow the City to purchase the hardware (and associated services and licenses) for additional Common Use Self Service (CUSS) kiosks which will be installed in the parking tunnel, the CONRAC, and the Terminal A/B ticket level connector and used by passengers to check-in for flights regardless of which airline they are using. The additional equipment will support the kiosk communications and be configured, maintained, and supported by the vendor (ARINC Incorporated). In addition, a switch will be provided for the training room equipment (CUSS kiosk, gate station, and counter station). Finally, this change order will provide Voice Over Internet Protocol (VoIP) for telephone communications and internet services for Payment Card Industry (PCI) Data Security Standards.
This change order will increase the contract value by $98,859.00 for an estimated total contract value of $1,947,242.00 for the contract period. The change order is in accordance with Local Government Code 252.048.
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. Pest Control Services - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee set a 13% Minority/Women Business Enterprise (M/WBE) subcontracting goal. Pied Piper Pest Control LLC has committed to 100% M/WBE subcontractor participation.
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. Case and Caterpillar 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.
C. Vehicle Appraisal Services - 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.
In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
D. Delineators and Accessories - 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.
E. Traffic Sign Material - 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.
In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
F. Cuvettes and Supplies - 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.
G. Common Use Passenger Processing System
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. Pest Control Services - Should this contract not be approved, the department would be required to procure pest control services on an as needed basis which could result in a delay in services to remove pest infestations. This could also result in higher costs and the department would not realize a cost savings customarily associated with long-term contracts.
B. Case and Caterpillar Equipment Parts - Should this contract not be approved, the department will be required to process individual procurements as needs arise. As a result, processing requirements as spot purchases would delay the timely repair of heavy duty equipment and the department will not realize the cost savings customarily associated with long-term agreements.
C. Vehicle Appraisal Services - Should this contract not be approved, the City would be required to procure services on an as-needed basis. This could hinder timely completion of vehicle appraisals and result in increased down time for vehicles awaiting repairs.
D. Delineators and Accessories - Should this contract not be approved, the Transportation & Capital Improvements Department would be required to purchase items on an as needed basis wherein increased costs could be realized as well as potential delays in delivery times.
E. Traffic Sign Material - Should this contract not be approved, Transportation & Capital Improvements will be required to process individual procurements as needs arise. Processing requirements as spot-purchases will not realize a cost savings customarily associated with long-term agreements and could delay product delivery.
F. Cuvettes and Supplies - Should this contract not be approved, hemoglobin testing for WIC program benefits will not be available. In order to provide this testing, the Health Department would be required to procure these items on an as needed basis which could result in increased costs, due to the City not having a contract agreement.
G. Common Use Passenger Processing System - 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.
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 amendment, and Contract Disclosure Forms are not required.