DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
10/31/2019 Annual Contracts
SUMMARY:
An ordinance awarding twenty-nine 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 $5,466,670.90. 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. Grande Truck Center and Doggett Freightliner of South Texas for Parts for Transmissions, Gas & Diesel Engines, $675,000.00 annually (2 contracts, Citywide)
B. Helena AGRI Enterprises for Herbicides, $159,000.00 annually (1 contract, Transportation & Capital Improvements)
C. Santex Truck Center, dba Kyrish Truck Centers of San Antonio for Navistar and Crane Carrier Equipment Parts, $220,000.00 annually (1 contract, Solid Waste Management Department)
D. Honeywell Building Solutions for Amendment to Annual Contract for Maintenance Agreement for Enterprise Building Integrator (EBI) System, $97,670.90 increase (1 contract, Convention and Sports Facilities)
E. Brinks, Inc. for Armored Car Services, $149,000.00 annually (1 contract, Citywide)
F. Collision Country Repair Center; Cooper Equipment Co.; Dallas Trailer Repair Co., Inc.; Doggett Freightliner of South Texas, LLC; Fox Truck World, LLC; Grande Truck Center; McCombs HFC, Ltd./Red McCombs Ford; Reliance Truck & Equipment; River City Hydraulics; Rush Truck Centers of Texas LP; Southern Tire Mart, LLC; Southwest Companies dba Southwest Wheel; Strategic Fleet Solutions dba Superior Fleet Solutions; Texan Waste Equipment, Inc. dba Heil of Texas San Antonio; and Texas Pack and Load Sales, Inc. dba Texas + Load for On Call Contract for Medium & Heavy Duty Truck Repair, $1,666,000.00 annually (15 contracts, Solid Waste Management Department)
G. Ag Pro Texas; Anderson Machinery Company, Inc.; Associated Supply Company, Inc. dba ASCO; DeWinne Equipment Company; Fox Truck World, LLC; Romco Equipment Co., LLC; Strategic Fleet Solutions, dba Superior Fleet Solutions; and Vermeer Texas-Louisiana for On-Call Contract for Off-Road Equipment Repair, $2,500,000.00 annually (8 contracts, 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.
Contracts procured on the basis of low bid:
A. Grande Truck Center and Doggett Freightliner of South Texas for Parts for Transmissions, Gas & Diesel Engines, $675,000.00 annually, upon award through June 30, 2022, with two, one year renewal options - This contract will be maintained by the Solid Waste Management Department and will be utilized by the Transportation and Capital Improvements, Parks and Recreation, and San Antonio Police Departments for the repairs of various on-road heavy duty trucks to include refuse trucks, dump trucks, all other heavy duty trucks, and tractor trailers. The contract will provide parts for approximately 1,200 units in the City’s fleet.
B. Helena AGRI Enterprises for Herbicides, $159,000.00 annually, upon award through December 31, 2022, with two, one-year renewal options - This contract will provide the Transportation & Capital Improvements Department, Storm Water Operations Division, with a contractor to furnish and deliver various herbicides to assist in controlling invasive vegetation species within natural areas and eradication of vegetation within improved concrete channels. Products being purchased through this contract do not contain glyphosate.
C. Santex Truck Center, dba Kyrish Truck Centers of San Antonio for Navistar and Crane Carrier Equipment Parts, $220,000.00 annually, upon award through June 30, 2022, with two, one year renewal options - will provide the Solid Waste Management Department, Fleet Operations Division, with a contractor to furnish replacement parts to repair Navistar International dump trucks used for brush hauling and garbage collection.
Amendment:
D. Honeywell Building Solutions for Amendment to Annual Contract for Maintenance Agreement for Enterprise Building Integrator (EBI) System, $97,670.90 increase, upon award through September 30, 2022 - This sixth amendment to Convention and Sports Facilities Enterprise Building Integrator (EBI) System contract will add Honeywell Building Solutions equipment; Honeywell Vector Access, with the Vector Occupant Application and associated licenses, Bluetooth-enabled card reader equipment, and installation, configuration, credentials, training, and a 3 year application access to the Henry B. Gonzalez Convention Center.
This purchase will provide allocated clients with secure access to convention center spaces through a smart phone application. This proprietary system will be incorporated into the existing EBI configuration at the Henry B. Gonzalez Convention Center. The Vector software will allow smartphones from approved individuals, who are granted access to Honeywell Vector’s access credentials format, the ability to unlock designated doors through Bluetooth card readers. Honeywell Building Solutions is the sole source provider of the Honeywell Vector Application Software and the Enterprise Building Integrator (EBI) system.
These items are being purchased 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 sole source.
Health or Safety Exemption:
E. Brinks, Inc. for Armored Car Services, $149,000.00 annually, upon award through June 30, 2022 with two, one-year renewal options - will provide various City departments with armored car services required for the secure transportation of currency between various City locations and the City-designated depositor. The City will receive next-day deposits for 63 locations, and will include the return of items such as deposit receipt books and currency required for change.
These services are being procured utilizing a Public Health or Safety Exemption. It is necessary to contract for armored car services for the transfer of currency between City departments and the City depository due to public health or safety concerns regarding the security of City funds and the safety of City personnel responsible for monetary transactions. As the sole respondent, the department is recommending award to Brinks Incorporated who can provide armored car services with mutually agreed upon terms and conditions for and next-day deposit service at 63 City locations.
Unforeseen Damage Exemption:
F. Collision Country Repair Center; Cooper Equipment Co.; Dallas Trailer Repair Co., Inc.; Doggett Freightliner of South Texas, LLC; Fox Truck World, LLC; Grande Truck Center; McCombs HFC, Ltd./Red McCombs Ford; Reliance Truck & Equipment; River City Hydraulics; Rush Truck Centers of Texas LP; Southern Tire Mart, LLC; Southwest Companies dba Southwest Wheel; Strategic Fleet Solutions dba Superior Fleet Solutions; Texan Waste Equipment, Inc. dba Heil of Texas San Antonio; and Texas Pack and Load Sales, Inc. dba Texas + Load for On Call Contract for Medium & Heavy Duty Truck Repair, $1,666,000.00 annually, upon award through December 31, 2021 with a one-year renewal option - will provide the Solid Waste Management Department (SWMD) with fifteen (15) contractors to perform repairs on various medium and heavy duty trucks and bodies in the SWMD fleet. These proposed contracts will provide general repairs to the City’s Class 4 through Class 8 trucks and bodies, including multiple makes and models of refuse trucks, fifth wheel tractor/trailers, grappler trucks, roll-off trucks, aerial lift trucks, street sweepers and pothole patch trucks. In order to maintain the wide range of medium and heavy duty trucks and bodies utilized by the City, a total of fifteen contractors are recommended for award. Although there is some redundancy of repair capabilities among the recommended contractors, many provide specialized repair capabilities for certain brands/models not offered by all of the recommended contractors. Also by awarding multiple on call vendors, a more timely repair of medium and heavy duty trucks can be achieved. These contracts will be utilized when in-house capacity or capability does not exist.
G. Ag Pro Texas; Anderson Machinery Company, Inc.; Associated Supply Company, Inc. dba ASCO; DeWinne Equipment Company; Fox Truck World, LLC; Romco Equipment Co., LLC; Strategic Fleet Solutions, dba Superior Fleet Solutions; and Vermeer Texas-Louisiana for On-Call Contract for Off-Road Equipment Repair, $2,500,000.00 annually, upon award through December 31, 2021 with a one-year renewal option - will provide repair work on various off-road equipment makes and models for the Solid Waste Management Department (SWMD). Vehicles used for emergency services by the Fire and Police Departments are not included within the scope of this contract. This contract is not specific to one particular equipment manufacturer, chassis, body, or equipment component, but rather is intended to be a general repair contract for many of the City’s vehicles, multiple makes and off-road equipment. In order to maintain the wide range of off-road equipment utilized by the City, a total of eight contractors are recommended for award. Although there is some redundancy of repair capabilities among the recommended contractors, many provide specialized repair capabilities for certain brands/models not offered by all of the recommended contractors. Also by awarding multiple on call vendors, a more timely repair of off-road equipment can be achieved. These contracts will be utilized when in-house capacity or capability does not exist.
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. Parts for Transmissions, Gas & Diesel Engines - 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 awards are to the lowest responsive bidders, who are also local businesses; 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. Herbicides - 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.
C. Navistar and Crane Carrier 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 applied.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Amendment to Annual Contract for Maintenance Agreement for Enterprise Building Integrator (EBI) 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.
E. Armored Car Services - 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 non-professional service contracts, so no preference was applied to this contract.
F. On-Call Contract for Medium & Heavy Duty Truck Repair - 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.
G. On-Call Contract for Off-Road Equipment Repair - 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. Parts for Transmissions, Gas & Diesel Engines - Should this contract not be approved, the Solid Waste Management Department will be required to procure parts and service on an as-needed basis which may result in higher pricing and delays in returning the units to service.
B. Herbicides - Should this contract not be approved, the Transportation and Capital Improvements Department, Storm Water Operations Division would be required to solicit quotes on an as needed basis, potentially resulting in increased costs and possible delays in product deliveries.
C. Navistar and Crane Carrier 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 to equipment and the department will not realize the cost savings customarily associated with long-term agreements.
D. Amendment to Annual Contract for Maintenance Agreement for Enterprise Building Integrator (EBI) System - Should this contract not be approved, the Convention and Sports Facilities Department will not have access to Bluetooth technology that will enable staff and clients the ability of a more secure process to unlock designated doors at convention center spaces through Bluetooth card readers.
E. Armored Car Services - Should this contract not be approved, City departments would be required to process deposits on an as-needed basis and not realize the benefits of contract pricing. Additionally, armored car service contractor will decrease the risks associated with transferring and transporting the City’s funds.
F. On-Call Contract for Medium & Heavy Duty Truck Repair - Should this contract not be approved, SWMD will be required to procure unforeseen repairs on an as needed basis, and the timely return of vehicles to service will be impacted.
G. On-Call Contract for Off-Road Equipment Repair - Should this contract not be approved, SWMD will be required to procure solid waste off-road equipment repairs on an as needed basis. Lack of a contract could result in an inefficient and less cost effective method of repair work.
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, amendment, health and safety exemption, and unforeseen damage exemption, and Contract Disclosure Forms are not required.