DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT: 9/3/2020 Annual Contracts
SUMMARY:
An ordinance awarding four 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 $136,000.00. 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. Ostos, LLC dba Proforma Diversified Corporate Solutions for Violation Notice Forms, $38,000.00 annually, $190,000.00 contract period (1 contract, Municipal Court)
B. DG Investment Intermediate Holdings 2 Inc., dba Convergint Technologies LLC for Electronic Locking System for San Antonio International Airport, $21,000.00 annually, $105,000.00 total contract value (1 contract, Aviation)
C. Asset Management Technologies, LLC for Change Order to Annual Contract for Interim Computerized Maintenance Management System Solution, $41,000.00 increase; $174,000.00 total contract value (1 contract, Aviation)
D. ProQuest, LLC for Amendment to ProQuest Master License Agreement, $36,000.00 annually; $108,000 contract period (1 contract, San Antonio Public Library)
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. Ostos, LLC dba Proforma Diversified Corporate Solutions for Violation Notice Forms, $38,000.00 annually, $190,000.00 contract period, October 1, 2020 through September 30, 2023 with two, one year renewal options - will provide Municipal Courts with printing services for the publication of eight (8) types of violation notice forms. Various enforcement personnel throughout the City, such as the San Antonio Police Department, Park Police, Airport Police, Parking Enforcement, and Code Compliance will utilize these forms to issue citations.
B. DG Investment Intermediate Holdings 2 Inc., dba Convergint Technologies LLC for Electronic Locking System for San Antonio International Airport, $21,000.00 annually, $105,000.00 total contract value, upon award through August 31, 2023 with two, one-year renewal options - will provide contractor to maintain the existing Medeco Logic Electronic Locking System currently in use for perimeter security at San Antonio International Airport (SAIA). The airport is required to comply with federal rules and regulations under Title 49 CFR 1542 - Airport Security. One of these regulatory requirements is related to access control systems used to secure portals that allow direct access to the Air Operations Area (AOA). The awarded Contractor will be responsible for providing a variety of parts (e.g., cylinders, keys, padlocks, programmers, etc.), web hosting services, repairs, diagnostics, and on-site technical assistance
Contract change orders and amendments:
C. Asset Management Technologies, LLC for Change Order to Annual Contract for Interim Computerized Maintenance Management System Solution, $41,000.00 annual increase; $174,000.00 total contract value, December 10, 2018 through December 10, 2020 with three, one-year renewal options - In December 2018, City awarded an informal contract for an interim Computerized Maintenance Management System (CMMS) to manage airport facility work orders, preventive maintenance, life-cycle costing, assets, and inventory. The two year contract began on December 10, 2018 with an estimated total contract value of $42,388.00 which included 20 CMMS system users. The contract will expire December 10, 2020. It was anticipated that a Citywide CMMS solution would be selected and implemented in the near future.
On October 31, 2019, City issued Change Order 1 to add 20 additional CMMS system users which increased the contract amount by $4,600.00, for a new estimated total contract value of $46,988.00.
With a City-wide solution still being investigated this Change Order 2 will allow for up to 70 additional CMMS systems users per year and extend the contract term with three additional one-year renewal options. This Change Order 2 will increase the contract value by $4,600.00 for year 2 and by $41,000.00 annually for year 3, 4 and 5. The new estimated total contract value is $174,000.00.
D. ProQuest, LLC for Amendment to ProQuest Master License Agreement, $36,000.00 annually; $108,000 contract period, October 1, 2020 through September 30, 2023 - This third amendment to City approved Ordinance 2017-1109-0875 awarded to ProQuest LLC will extend the term of the contract by three (3) additional years for a non-exclusive, non-transferable license of uninterrupted access to various electronic databases including Ancestry.com and FOLD3. These electronic databases are utilized by patrons of the San Antonio Public Library (SAPL) for ancestry and historical military research. Through contractual agreements with the publishers of each title, ProQuest LLC is the sole source and exclusive provider of these databases.
These items are being purchased as a Sole Source according to the provisions of Texas Statutes Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements.
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. Violation Notice Forms - 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.
B. Electronic Locking System - 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.
C. Change Order to Annual Contract for Interim Computerized Management Solution -
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
D. Amendment to ProQuest Master License Agreement -
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Violation Notice Forms - Should this contract not be approved, the City will be required to procure the printing services of violation notice forms on an as needed basis wherein an increased cost due to non-contract buying could be realized.
B. Electronic Locking System - Should this contract not be approved, the department will be required to process individual procurements to maintain the existing Medeco Logic Electronic Locking System currently in use at San Antonio International Airport on an as needed basis. Procuring outside of a contract will likely result in negative impacts on the timeliness, efficiency and cost of services.
C. Change Order to Annual Contract for Interim Computerized Management Solution - Should this change order not be approved, the Aviation Department will have to operate without the already established interim CMMS solution to manage work orders, preventive maintenance, life-cycle costing, assets, and inventory. Having to suspend use of the interim solution while awaiting long term, Citywide solution would have a negative impact on the Aviation’s Department ability to manage its facilities.
D. Amendment to ProQuest Master License Agreement - Should this contract not be approved, SAPL staff and patrons will resort to utilizing microfilm for conducting their research which may slow down the delivery of information and restrict content availability.
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 amendments, and Contract Disclosure Forms are not required.