DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
2/20/2020 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 $688,439.89. 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. Industrial Disposal Supply Co for Tymco Sweeper Equipment Parts, $165,000.00 annually (1 contract, Solid Waste Management Department)
B. Holt Texas, LTD. for Caterpillar Parts, $121,000.00 annually (1 contract, Solid Waste Management Department)
C. Zamorano Enterprises, Inc. for Decorative Metal Chairs and Benches, $72,000.00 annually (1 contract, Parks and Recreation Department)
D. SiteOne Landscape Supply Holding LLC for Supply of Trees 30 Gallon, $74,000.00 annually (1 contract, Parks and Recreation)
E. Texdoor Ltd. for Overhead Door Repairs, $160,000.00 annually (1 contract, San Antonio Fire Department)
F. Bentley Systems, Inc. for Bentley Enterprise License Subscriptions, $96,439.89 Year 1; $319,216.04 contract period (1 contract, Transportation & Capital Improvements)
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. Industrial Disposal Supply Co for Tymco Sweeper Equipment Parts, $165,000.00 annually, upon award through December 31, 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 Tymco Sweepers for the purpose of sweeper repair used to clean City streets and parking lots.
B. Holt Texas, LTD. for Caterpillar Parts, $121,000.00 annually, upon award through December 31, 2022, with two, one year renewal options - will provide the Solid Waste Management Department with a contractor to provide original equipment manufacturer replacement parts for backhoes, excavators, loaders, dozers and paving equipment used for construction projects performed throughout the City. Normal wear parts items will be delivered either the same day or next day, depending on the time of day the order is placed with the contractor.
C. Zamorano Enterprises, Inc. for Decorative Metal Chairs and Benches, $72,000.00 annually, upon award through March 31, 2023 with two, one year renewal options - will provide the Parks and Recreation Department with decorative metal chairs and benches on an as needed basis. The decorative metal chairs and benches will replace older chairs and benches, and will be used at new parks located throughout the City. These benches will be installed by Parks Department staff.
D. SiteOne Landscape Supply Holding LLC for Supply of Trees 30 Gallon, $74,000.00 annually, upon award through June 30, 2021, with a one year renewal option - will provide the Parks and Recreation Department with a contractor to provide a wide variety of 30 gallon trees on an as needed basis. The list of shade and ornamental tree species includes, Cedar Elm, Chinkapin Oak, Live Oak, Mexican Sycamore, Mexican White Oak, Texas Mountain Laurel, Texas Red Oak and Texas Redbud. The department will utilize this contract for tree planting projects throughout City Parks and to increase overall tree canopy throughout the City of San Antonio.
E. Texdoor Ltd. for Overhead Door Repairs, $160,000.00 annually, April 1, 2020 through June 30, 2023, with two, one-year renewal options - will provide the San Antonio Fire Department with a contractor to provide labor and materials to perform overhead door repair services to approximately 300 overhead doors located at various Fire facilities. The repair services are required due to accidents, vandalism, and normal wear and tear to the doors.
Sole Source:
F. Bentley Systems, Inc. for Bentley Enterprise License Subscriptions, $96,439.89 Year 1; $319,216.04 contract period, March 1, 2020 through February 28, 2023 - will provide the Transportation and Capital Improvements (TCI) Department with a consolidated annual contract for Bentley Enterprise Subscription software licenses including maintenance and support. Engineering/manufacturing software and training will be provided through an Online Learning Center with unlimited access for employees by way of a terminal server environment. The software system serves as the primary in-house design format package for the Traffic, Stormwater, and Project Management Divisions of TCI. The Bentley program package is used to create in-house storm water designs, review plats, review building permits and analyze floodplain models. In addition, the package will be utilized in Capital Improvement Projects to create future projects and address City Council requests.
These items are being purchased as Sole Source according to the provisions of Texas Statues 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.
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. Tymco Sweeper 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. Caterpillar 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. Decorative Metal Chairs and Benches
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. Supply of Trees 30 Gallon
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.
E. Overhead Door Repairs
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.
F. Bentley Enterprise License Subscriptions
This contract is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Tymco Sweeper 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 sweeper equipment and the department will not realize the cost savings customarily associated with long-term agreements.
B. Caterpillar Parts - Should this contract not be approved, the department will not have a reliable and continuous supply of original equipment manufacturer replacement parts necessary for general routine and preventive maintenance repairs of heavy equipment. The Department would be required to procure parts on an as needed basis wherein increased costs due to non-contract buying could be realized.
C. Decorative Metal Chairs and Benches - Should this contract not be approved, the department would be required to purchase these items on an as needed basis wherein increased costs and delay in delivery could be realized due to non-contract buying.
D. Supply of Trees 30 Gallon - Should this contract not be approved, the 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 in place.
E. Overhead Door Repairs - Should this contract not be approved, the department would be required to procure overhead door repair services on an as-needed basis. This may increase the cost of parts and labor due to non-contract buying, and cause delays in repairing overhead doors.
F. Bentley Enterprise License Subscriptions - Should this contract not be approved, the department would not be able to perform in-house storm water designs, review plats and building permits, and analyze floodplain models. Staff would be required to find alternative methods for designing and reviewing maintenance and capital engineering projects.
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 sole source, and Contract Disclosure Forms are not required.