DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Annual Contract for Medical Supplies and Equipment
SUMMARY:
This ordinance authorizes contracts with Bound Tree Medical, LLC, and B&E Medical Supply and Equipment, LLC, to provide the San Antonio Fire Department with the purchase and delivery of medical supplies and equipment for an estimated annual cost of $1,532,000.00. The initial term of this contract is upon award through December 31, 2023, with two 1-year renewal options. No funds will be encumbered by this ordinance. Funding is available through the FY 2020 General Fund budget. Funding for subsequent years of this contract is subject to City Council approval of the annual budget and funds.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action are the offers submitted by Bound Tree Medical, LLC and B&E Medical Supply and Equipment, LLC for the purchase and delivery of medical supplies and equipment for the San Antonio Fire Department Emergency Medical Services (EMS) Division. Bound Tree Medical, LLC is recommended for award for the following categories: Airway Supplies, Syringes & Needles, IV Supply, EMS Supplies and EMS Equipment in the estimated annual amount of $1,385,000.00. Bound Tree Medical, LLC has committed to satisfy the 25% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal through the use of B&E Medical Supply and Equipment, LLC in the estimated amount of $346,250.00 annually. In addition, B&E Medical Supply, LLC is recommended for award for the First Aid Supplies category in the estimated annual amount of $147,000.00 and will satisfy the subcontracting requirement through self-performance. Bound Tree Medical, LLC and B&E Medical Supply and Equipment, LLC will deliver medical supplies and equipment on an as-needed basis to maintain established inventory levels for the EMS Division.
The previous medical supplies contract was solicited in 2014 with award to a single provider of medical supplies to the Fire Department, as well as other City departments, and did not include a requirement for the participation of local small minority and women-owned medical supply companies. The Finance Department, working in coordination with the Economic Development and Fire Departments, worked to “de-bundle” this contract into three separate solicitations containing eight categories of medical supplies. The solicitation for Medical Supplies and Equipment contains a total six categories. Pricing for each category was evaluated and provided the opportunity for a separate contract award. In addition, a subcontracting requirement was applied to seven of the eight categories to ensure participation by local, small, minority and women-owned enterprises.
Prior to release of the solicitation, a vendor outreach event was hosted by staff from the Finance, Economic Development, and Fire Departments. The event provided an overview of the medical supplies required and the proposed solicitation and SBEDA processes. This event also allowed potential offerors the ability to provide feedback regarding the upcoming solicitation process. Feedback received was incorporated into the resulting solicitation.
The City issued a Request for Offer (RFO) for an “Annual Contract for Medical Supplies and Equipment” (RFO 6100011705) on October 17, 2019, with a submission deadline of December 11, 2019. This RFO for medical supplies and equipment consisted of six categories and allowed offerors the option to provide pricing for one or more categories. The City reserved the right to award each category separately resulting in multiple contract awards. A Minority/Women Business Enterprise subcontracting goal of 25% was applied to the solicitation by the Economic Development Department to increase participation of local, small minority and woman-owned businesses enterprises.
Eight offers were received and three were deemed non-responsive by the Economic Development Department, Small Business Office for failing to meet the 25% M/WBE subcontracting goal. Staff recommends acceptance of the low responsive offer from Bound Tree Medical, LLC for the following categories: Airway Supplies, Syringes & Needles, IV Supply, EMS Supplies and EMS Equipment. B&E Medical Supply, LLC is recommended for award for the First Aid Supplies category.
The initial term of the agreement shall be upon award through December 31, 2023. Two additional one-year renewals at the City’s option shall also be authorized by this ordinance. The unit pricing offered by awarded vendor must remain fixed for the first twelve months of the initial contract period.
This contract was procured by means of a Public Health and Safety exemption in accordance within the provisions of the Texas Statutes Local Government Code 252.022.07.
ISSUE:
This contract will provide medical supplies and equipment for the San Antonio Fire Department. The supplies and equipment consisting of Airway Supplies, Syringe & Needles, IV Supply, EMS Supplies, EMS Equipment and First Aid Supplies will be used during emergency medical response by the Emergency Medical Services Division. Bound Tree Medical, LLC and B&E Medical Supply and Equipment, LLC will provide medical supplies and equipment within five (5) business days after receipt of purchase order and will provide expedited forty-eight (48) hour delivery services, if required by the department.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. Bound Tree Medical, LLC and B&E Medical Supply and Equipment, LLC have committed to satisfying the 25% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal.
Categories A, B, C, E and F: In accordance with the Local Preference Program, no local preference was applied, since the local offeror is not within 3% of the recommended lowest non-local offeror.
Category D: The recommended award is to the lowest responsive offeror, 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.
ALTERNATIVES:
Should this contract not be approved, the City would be required to purchase medical supplies and equipment as needs arise thereby negating the price advantage associated with consolidating the City’s purchasing power. In addition, the lack of a contract could affect the timeliness in which medical supplies and equipment are received and impact the department’s ability to properly address the medical needs of the citizens of San Antonio.
FISCAL IMPACT:
This ordinance authorizes contracts with Bound Tree Medical, LLC and B&E Medical Supply and Equipment, LLC to provide the San Antonio Fire Department with the purchase and delivery of medical supplies and equipment for an estimated annual cost of $1,532,000.00. The initial term of this contract is upon award through December 31, 2023 with two, one-year renewal options. No funds will be encumbered by this ordinance. Funding is available through the FY 2020 General Fund budget. Funding for subsequent years of this contract is subject to City Council approval of the annual budget and funds.
RECOMMENDATION:
Staff recommends the approval of these contracts with Bound Tree Medical, LLC. for Categories A, B, C, E and F and B&E Medical Supply and Equipment, LLC for Category D. These contracts will provide the Fire Department EMS Division with the purchase and delivery of medical supplies and equipment for an estimated annual cost of $1,532,000.00.
This contract is procured by means of a Public Health and Safety Exemption and a Contracts Disclosure Form is not required.