DEPARTMENT: Finance
DEPARTMENT DIRECTOR: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
6/11/2020 Annual Contracts
SUMMARY:
An ordinance awarding one contract to provide the City with commodities and services on an annual basis for the term of the contract, for an estimated annual cost of $40,000.00. 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. Fortiline, Inc. for Manhole Covers, $40,000.00 annually; $200,000.00 contract term (1 contract, Public Works)
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. Fortiline, Inc. for Manhole Covers, $40,000.00 annually; $200,000.00 contract term, July 1, 2020 through September 30, 2023 with two, one year renewal options - will provide the Public Works Department - Street Maintenance and Storm Water Operations Divisions with sewer and manhole road construction products for replacement and new installation of manhole covers at various locations 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. Manhole Covers - 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. Manhole Covers - Should this contract not be approved, Street Maintenance and Storm Water Operations Divisions will have to spot purchase from various contractors on an as needed basis which may result in higher pricing and affect delivery time. This could potentially cause a public safety issue.
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 this contract 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.
This contract was procured on the basis of low bid, and a Contract Disclosure Forms is not required.