DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
12/12/2019 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 $715,525.00. 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. MB Dustless Air Filter Company LLC for HVAC Filter Replacements, $70,000.00 annually (1 contract, Building and Equipment Services)
B. Lopez Printing, Inc. for Business Cards and Wide Format Printing Services, $30,000.00 annually; $90,000.000 contract period (1 contract, Citywide )
C. Genuine Parts Company for Automotive Ignition Parts, $50,000.00 annually (1 contract, Building and Equipment Services)
D. Nueces Power Equipment for Wirtgen Reclaimer and Milling Machine Equipment Parts, $40,000.00 annually; $200,000.00 total contract value (1 contract, Solid Waste Management Department)
E. Productivity Apex for Maintenance & Support of the Inspector Route Optimization and Inspector Mobile Application System, $58,525.00 initial year; $310,715.00 total contract value (1 contract, Development Services Department & ITSD)
F. Everbridge, Inc. for Amendment to Annual Contract of Subscription for Aviation Emergency Notification, $67,000.00 increase; $215,000.00 total contract value (1 contract, Aviation)
G. Office Depot, Inc. for Amendment to Annual Contract for Office Supplies, $400,000.00 increase; $5,500,000.00 total contract value (1 contract, Citywide)
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. MB Dustless Air Filter Company LLC for HVAC Filter Replacements, $70,000.00 annually, upon award through September 30, 2022, with two, one-year renewal options - will provide the Building & Equipment Services (BES) Department with a qualified contractor and trained technicians to provide all labor, filters and material to perform monthly and quarterly filter replacement services to Heating, Ventilation, and Air Conditioning (HVAC) systems and supporting equipment at 14 current City facilities. This contract shall also provide services for any new facilities added during the term of the contract. This contract does not include any maintenance or repair services.
B. Lopez Printing, Inc. for Business Cards and Wide Format Printing Services, $30,000.00 annually; $90,000.000 contract period, upon award through January 31, 2022 with a one-year renewal option - will provide various City Departments with business cards for City staff. This contract will be managed by the City’s Finance Department, Print and Mail Operations Division, to support print services for various City Departments.
C. Genuine Parts Company for Automotive Ignition Parts, $50,000.00 annually, upon award through March 31, 2023, with two, one-year renewal options - will provide the Building and Equipment Services Department, Fleet Division and various city departments with automotive ignition parts, wires, cable parts and accessories. These parts are needed for replacement and preventative maintenance on city vehicles.
D. Nueces Power Equipment for Wirtgen Reclaimer and Milling Machine Equipment Parts, $40,000.00 annually; $200,000.00 total contract value, upon award through December 31, 2022, with two, one year renewal options - will provide the Solid Waste Management, Fleet Operations Division, with a contractor to furnish replacement parts for the purpose of repairing reclaimer and milling machines utilized for recycling asphalt for street repairs. This equipment is owned by the City of San Antonio and is used by the Transportation and Capital Improvements Department.
Sole Source:
E. Productivity Apex for Maintenance & Support of the Inspector Route Optimization and Inspector Mobile Application System, $58,525.00 initial year; $310,715.00 total contract value, December 21, 2019 to December 20, 2020, with four, one-year renewal options - will provide for maintenance and support of the existing Inspector Route Optimization software utilized by the Development Services Department (DSD). This software provides DSD Inspectors with the efficient routing of jobs as they are scheduled for routine inspection from DSD’s permitting system and provides an optimal vehicle route destination for inspectors to view and manage their daily inspections more efficiently.
The solution optimizes inspector routes, provides an accurate location display for each inspector, saves fuel and vehicle maintenance costs by minimizing vehicle run-time and miles driven, provides automated notification to customers of their place in queue and/or the estimated time of arrival for each inspector, and helps ensure inspector and vehicle accountability.
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.
Amendment:
F. Everbridge, Inc. for Amendment to Annual Contract of Subscription for Aviation Emergency Notification, $67,000.00 increase; $215,000.00 total contract value, upon award through July 18, 2024, with no renewal option - On September 8, 2016 the City Council approved Ordinance 2016-09-08-0676 allowing the City to execute a contract for an annual subscription to a mass notification system that enables the Aviation Department to communicate emergency messages for an estimated total contract value of $125,000.00 through July 18, 2021.
The Contract was awarded in accordance with the Texas Local Government Code Section 271.103 which provides that a local government may purchase goods or services available under Federal supply schedules of the United States General Services Administration (“GSA”).
On May 11, 2017 City approved Amendment 1 to increase the contract by $23,000.00 to expand the system’s capabilities for a new total contract value of $148,000.00.
At the time of the initial award, the GSA contract expiration date was July 18, 2019. GSA recently exercised a 5-year renewal option and the contract now expires on July 18, 2024.
This amendment will revise the City’s contract term to July 18, 2024 (to match the GSA contract term), delete the existing renewal clause (through July 18, 2021), and increase the contract value by $67,000.00, for a new estimated total contract value of $215,000.00.
G. Office Depot, Inc. for Amendment to Annual Contract for Office Supplies, $400,000.00 increase; $5,500,000.00 total contract value, January 1, 2020 through March 31, 2020 - This amendment to City approved Ordinance 2015-06-18-0529 awarded to Office Depot, Inc. will extend the temporary term extensions of the contract by 3 additional months. This annual contract provides the purchase and delivery of general office supplies and products utilized by over 400 City facilities. The extension is requested due to the additional time required to develop solicitation requirements which address alternatives for “greener” and more sustainable office supply options.
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. HVAC Filter Replacements -
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. Business Cards and Wide Format Printing Services
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. Lopez Printing, Inc is a small, minority- owned firm that will be self-performing the 18% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal.
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.
C. Automotive Ignition 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.
D. Wirtgen Reclaimer and Milling Machine 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.
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. Maintenance & Support of the Inspector Route Optimization and Inspector Mobile Application System
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.
F. Amendment to Annual Contract of Subscription for Aviation Emergency Notification
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.
G. Amendment to Annual Contract for Office Supplies
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.
ALTERNATIVES:
A. HVAC Filter Replacements - Should this contract not be approved, the department would be required to process individual procurements for filter replacement services on an as-needed basis which may result in higher prices and delays in providing timely services thus effecting the efficiency of the equipment.
B. Business Cards and Wide Format Printing Services - Should this contract not be approved, City Departments would be required to purchase items on an as needed basis which may result in higher prices and delays in printing services.
C. Automotive Ignition Parts - Should this contract not be approved, the Building and Equipment Services Department, Fleet Services Division would be required to solicit quotes on an as-needed basis, potentially resulting in increased costs and possible delays in services for replacement and maintenance for the city vehicles.
D. Wirtgen Reclaimer and Milling Machine 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 heavy-duty equipment and the department will not realize the cost savings customarily associated with long-term agreements.
E. Maintenance & Support of the Inspector Route Optimization and Inspector Mobile Application System - Should this contract not be approved, the City would be required to purchase maintenance and support of the existing Inspector Route Optimization through an open market engagement with the vendor. This could cause delays in service and support of DSD inspections throughout the City.
F. Amendment to Annual Contract of Subscription for Aviation Emergency Notification - Should this amendment not be approved, the Aviation Department will continue service through July 17, 2020 under a Purchase Order issued prior to July 18, 2019. The Aviation Department would then seek City Council approval of a new contract beginning July 18, 2020 and running through July 17, 2024 under the same GSA contract.
G. Amendment to Annual Contract for Office Supplies - Should this contract not be approved, the City would be required to purchase general office supplies and products through a variety of office supply vendors as needs arise thereby overlooking the advantage associated with the City’s consolidated purchasing power of procuring office supplies through one vendor.
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, sole source, and amendment and Contract Disclosure Forms are not required.