DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
9/17/2020 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 $701,000.00. 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. RDO Equipment Co. for John Deere Industrial Parts, $30,000.00 annually; $150,000.00 contract period (1 contract, Solid Waste Management Department)
B. Collision Country Repair Center for Medium and Heavy Duty Truck Collision Repair, $200,000.00 annually (1 contract, Solid Waste Management)
C. Ennis-Flint, Inc. for Acrylic Waterborne Traffic Paint, $78,000.00 annually (1 contract, Aviation)
D. Bibliotheca, LLC for Amendment to 3M RFID Maintenance Agreement, $315,000.00 annually (1 contract, San Antonio Public Library)
E. LJ Power, Inc. for Change Order to Annual Contract for Citywide Maintenance and Repair of Generators & Associated Equipment, $78,000.00 annually; $468,000.00 total change order value (1 contract, Citywide)
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. RDO Equipment Co. for John Deere Industrial Parts, $30,000.00 annually; $150,000.00 contract period, October 1, 2020 through December 31, 2023, with two, one-year renewal options - will provide the Solid Waste Management Department with parts for John Deere Industrial equipment. There are currently 5 John Deere Industrial units in the City’s inventory.
B. Collision Country Repair Center for Medium and Heavy Duty Truck Collision Repair, $200,000.00 annually, October 1, 2020 through December 31, 2023, with two, one year renewal options - will provide the Solid Waste Management Department with collision repair for medium and heavy duty trucks. The City currently has approximately 850 vehicles that are classified medium and heavy duty trucks including but not limited to asphalt equipment, aerial lift, brush, dump, grappler, refuse, and recycle trucks. Classification for medium and heavy duty trucks is considered Class 6 Trucks (19,501 - 26,000), Class 7 Trucks (26,001 - 33,000 lb. GVWR) and Class 8 Trucks (33,001 lb. GVWR and over). This contract will be utilized by the Solid Waste Management Department and includes all collision parts and collision services needed for truck and truck body repair.
C. Ennis-Flint, Inc. for Acrylic Waterborne Traffic Paint, $78,000.00 annually, October 1, 2020 through September 30, 2023 with two, one-year renewal options - will provide acrylic waterborne traffic paint for the Aviation Department. The paint shall be FAA approved and capable of receiving and holding glass beads for producing reflectorized traffic markings.
Amendments:
D. Bibliotheca, LLC for Amendment to 3M RFID Maintenance Agreement, $315,000.00 annually, October 1, 2020 through September 30, 2021 with one, one-year renewal option - This amendment to City approved Ordinance 2017-0907-0627 awarded to Bibliotheca LLC will extend the term of the contract by two (2) additional years for continuation of the annual maintenance agreement of the 3M RFID (Radio Frequency Identification) equipment installed in the San Antonio Public Library system and the software maintenance agreement installed at the Command Center. Pricing includes labor, service parts, and periodic software upgrades necessary to maintain the equipment in proper operating condition.
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.
E. LJ Power, Inc. for Change Order to Annual Contract for Citywide Maintenance and Repair of Generators & Associated Equipment, $78,000.00 annually; $468,000.00 total change order value, January 1, 2020 through December 31, 2022 with one, three-year renewal options - This change order 3 will provide the City with preventative maintenance and repair services for 24 new generators at various City locations. On March 30, 2017, City Council authorized a contract with LJ Power, Inc. through Ordinance 2017-03-30-0170. The proposed change order 3 will allow for the addition of 24 new generators, update existing generator information, revise supplemental terms, contractor qualifications and responsibilities, and site specific 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. John Deere Industrial 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.
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. Medium and Heavy Duty Truck Collision Repair - 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, 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. Acrylic Waterborne Traffic Paint - 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.
D. Amendment to 3M RFID Maintenance 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.
E. Change Order to Annual Contract for Citywide Maintenance and Repair of Generators & Associated Equipment -
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business (VOSB) Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. John Deere Industrial Parts - Should this contract not be approved, the City would be required to purchase parts off contract which could result in higher costs and/or delay time for repairs to be completed by the department.
B. Medium and Heavy Duty Truck Collision Repair - Should this contract not be approved, the City will be required to purchase collision repair for medium and heavy duty trucks 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 collision repair.
C. Acrylic Waterborne Traffic Paint - Should this contract not be approved, the Department will be required to process individual procurements to provide acrylic waterborne traffic paint on an as needed basis. Procuring outside of a contract will likely result in negative impacts on the timeliness, efficiency and cost procuring the required paint.
D. Amendment to 3M RFID Maintenance Agreement - Should this contract not be approved, the library collection management system currently installed throughout SAPL will not receive the maintenance and repairs required to continue optimum operation. As the equipment is proprietary, there is no other vendor that can provide maintenance service.
E. Change Order to Annual Contract for Citywide Maintenance and Repair of Generators & Associated Equipment - Should this change order not be approved, the City departments will be required to purchase maintenance and repair services for generators on an as needed basis, wherein increased cost due to non-contract buying could be realized as well as delaying required maintenance services.
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.