DEPARTMENT: Finance
DEPARTMENT DIRECTOR: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
4/30/2020 Annual Contracts
SUMMARY:
An ordinance awarding three 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 $210,000.00. 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. Lone Star Radiator Co. Inc. for Radiator, Fuel Tanks, Heater Cores, Coolers, & Evaporator Parts & Services, $102,000.00 annually (1 contract, Solid Waste Management Department)
B. Big Truck Rental and Premier Truck Sales & Rental, Inc. for Rental of Refuse Trucks, $108,000.00 annually (2 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.
Contract procured on the basis of low bid:
A. Lone Star Radiator Co. Inc. for Radiator, Fuel Tanks, Heater Cores, Coolers, & Evaporator Parts & Services, $102,000.00 annually, upon award through March 31, 2023 with two, one year renewal options - will provide cleaning, repairs, and new component parts and service for radiators, fuel tanks, heater cores, and evaporator units for the City’s vehicle fleet. This contract will be utilized by the Solid Waste Management, Building and Equipment Services, Aviation, and Fire Departments for repairs in order to keep the vehicles operational.
Public Health & Safety Exemption:
B. Big Truck Rental and Premier Truck Sales & Rental, Inc. for Rental of Refuse Trucks, $108,000.00 annually, upon award through March 31, 2021 with a one year renewal option - will provide the Solid Waste Management Department with two contractors to provide for the rental of Refuse Collection Body 28+ Cubic Yard, High Compaction, Automated, Side Loader Vehicles to be utilized by the department on an as needed basis. The automated side load trucks will be used to support the current fleet that provides refuse collection throughout the City.
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. Radiator, Fuel Tanks, Heater Cores, Coolers, & Evaporator Parts & Services -
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.
B. Rental of Refuse Trucks - 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 services contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Radiator, Fuel Tanks, Heater Cores, Coolers, & Evaporator Parts & Services - Should this contract not be approved, the departments would be required to procure these items on an as-needed basis. This would increase down time on vehicles, thus hindering the timely completion of maintenance and repair of the City’s vehicle fleet.
B. Rental of Refuse Trucks - Should this contract not be approved, the department will not be able to meet the vehicle line up requirements and operational demands; it would also jeopardize the weekly collection of refuse from every City resident as required by State Statue.
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.