DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
3/5/2020 Annual Contracts
SUMMARY:
An ordinance awarding five 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 $1,475,000.00. 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. Gateway Printing & Office Supply, Inc. and San Antonio Lighthouse for the Blind for General Office, Breakroom, School and Computer Supplies, $987,000.00 annually (2 contracts, Citywide)
B. Northside Chevrolet for Chevrolet Parts & Service, $175,000.00 annually (1 contract, Building and Equipment Services)
C. River City Hydraulics, Inc. for Aerial Tower Parts, $60,000.00 annually (1 contract, Solid Waste Management, Aviation, and Building and Equipment Services Departments)
D. Casco Industries for Chemguard Firefighting Foam Class A & B, $253,000.00 annually (1 contract, San Antonio Fire 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. Gateway Printing & Office Supply, Inc. and San Antonio Lighthouse for the Blind for General Office, Breakroom, School and Computer Supplies, $987,000.00 annually, April 1, 2020, through December 31, 2022, with two, one-year renewal options - will provide the City with the purchase and next day, desk-top delivery of general office, breakroom, school, and computer supplies utilized by over 400 City facilities located throughout the City. Over 20,000 items will be available for purchase and delivery from two catalogs. In fulfilling with the Office of Sustainability’s recommendation, this contract will suggest “Environmentally Preferred Products” including products with a lower overall cost per use.
B. Northside Chevrolet for Chevrolet Parts & Service, $175,000.00 annually, July 1, 2020, through June 30, 2023, with two, one-year renewal options - will provide the Building and Equipment Services Department, Fleet Services Division, with replacement parts and vehicle repair services for Chevrolet cars and trucks. This contract will support approximately 200 passenger cars and light duty trucks currently in the City’s fleet utilized by all city departments and maintained by the Building and Equipment Services Department, Fleet Services Division.
C. River City Hydraulics, Inc. for Aerial Tower Parts, $60,000.00 annually, upon award through December 31, 2023, with two, one-year renewal options - will provide Solid Waste Management, Aviation and Building and Equipment Services Departments with aerial tower replacement parts for repair of 12 truck mounted lifts utilized primarily for traffic light replacement.
Public Health & Safety Exemption:
D. Casco Industries for Chemguard Firefighting Foam Class A & B, $253,000.00 annually, April 1, 2020 through March 31, 2023, with two, one-year renewal options - will provide the San Antonio Fire Department with a vendor for the purchase and delivery of firefighting foam. This foam shall be utilized to fight Class A and Class B fires, by definition from the National Fire Protection Association. The foam selection is used to help extinguish multiple types of fires.
The Class A Foam is used to extinguish grass, vehicle and building fires. The foam also helps keep fires suppressed until final clean-up is accomplished. The Class B Foam is used to suppress hydrocarbon fires and fuel fires (such as gasoline, diesel, and oil products) from large and small containers. This foam can also be used on pesticides and other liquids to suppress vapors. Class B Foam (which meets FAA requirements and will be utilized only at the Airport) meets the federal, state and local requirements and will be utilized only in the event of an emergency.
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. General Office, Breakroom, School and Computer Supplies - 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 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. Chevrolet Parts & Service - 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. Aerial Tower 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.
D. Chemguard Firefighting Foam Class A & B - 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.
ALTERNATIVES:
A. General Office, Breakroom, School and Computer Supplies - Should this contract not be approved, the City would be required to purchase general office, breakroom, school, and computer supplies as needs arise thereby overlooking the advantage associated with the City’s consolidated purchasing power of procuring these supplies through a requirements contract. Establishing a catalog discount pricing requirements contract will secure substantial volume discounts with many of the general office supplies items discounted at fixed, firm discounts of up to 67% on list prices off the published catalog and 88% on list prices off the specified-core items.
B. Chevrolet Parts & Service - Should this contract not be approved, the department will be required to purchase Chevrolet parts and services on an as needed basis wherein increased cost due to non-contract buying could be realized as well as increased down time of vehicles, thus delaying timely completion of maintenance and repair.
C. Aerial Tower Parts - Should this contract not be approved, the City would be required to procure parts for repairs of truck mounted lifts on an as-needed basis wherein increased costs due to non-contract buying could be realized.
D. Chemguard Firefighting Foam Class A & B - Should this contract not be approved, the San Antonio Fire Department would be required to purchase firefighting foam on an as-needed basis. As a result, cost savings associated with having a term contract in place would not be realized.
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 public health and safety exemption, and Contract Disclosure Forms are not required.