DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
10/8/2020 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 $45,000.00. 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. Nueces Power Equipment for Hyundai Construction Equipment Parts, $20,000.00 annually; $100,000.00 contract period (1 contract, Solid Waste Management Department)
B. Management Information Technology USA, dba Child Plus Software for Child Plus Software, $11,000.00 estimated first 3 month period; $164,000.00 total contract value (1 contract, Department of Human Services)
C. FirstWatch Solutions, Inc. for FirstWatch Maintenance & Support, $14,000.00 estimated annually; $69,000.00 total contract value (1 contract, Aviation)
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. Nueces Power Equipment for Hyundai Construction Equipment Parts, $20,000.00 annually; $100,000.00 contract period, upon award through September 30, 2023, with two, one year renewal options - will provide Solid Waste Management, Fleet Operations Division, with a contractor to furnish replacement parts for nine Hyundai Construction equipment units utilized by the City for street repairs and routine drainage maintenance projects.
Sole Source:
B. Management Information Technology USA, dba Child Plus Software for Child Plus Software, $11,000.00 estimated first 3 month period; $164,000.00 total contract value, October 31, 2020 through January 31, 2022 with two, one year renewal options - will provide the Department of Human Services (DHS) with training, software maintenance, consultation and upgrades for ChildPlus Software Subscription services. These services include online and attendance applications, custom module designer, email notifications for parents and staff, plus all the basic functions DHS requires such as eligibility, waiting lists, enrollment, attendance, health, immunizations, and nutrition to support the Head Start Program.
The subscription services for the first 3 months is approximately $11,000.00 for the period October 31, 2020 through January 31, 2021. The subscription, consultation and training services for years 2, 3 and 4 are for a full 12-month period for an estimated $51,000.00 annually, for a total contract amount of $164,000.00.
These items are being purchased as Sole Source according to the provisions of Texas Statues Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
C. FirstWatch Solutions, Inc. for FirstWatch Maintenance & Support, $14,000.00 estimated annually; $69,000.00 total contract value, Upon award through August 31, 2021, with four, one year renewal options - will provide the Fire Department with a contractor to provide annual maintenance and support for the various instance, triggers and modules of FirstWatch that have been in operation for over ten years. These triggers and modules support Fire Management in the evaluation of response times, trend analysis, and resource allocations. This application provides instantaneous alerts and dashboard type performance data generated from the Computer Aided Dispatch (CAD) system.
These items are being purchased as Sole Source according to the provisions of Texas Statues Local Government Code 252.022.07. No other source can supply the items listed nor can any comparable item fulfill the same requirements. Vendor acknowledges, with his/her signature, that all items offered are considered a Sole Source.
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. Hyundai Construction Equipment Parts - 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. Child Plus Software -
This contract is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. FirstWatch Maintenance & Support -
This contract is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Hyundai Construction Equipment Parts - Should this contract not be approved, the department will be required to process individual procurements as needs arise. As a result, processing requirements as spot purchases would delay the timely repair to heavy-duty equipment and the department will not realize the cost savings customarily associated with long-term agreements.
B. Child Plus Software - Should this contract not be approved, the Department of Human Services would not receive updates, upgrades, patches and technical support services for the ChildPlus Software that supports Head Start Program.
C. FirstWatch Maintenance & Support - Should this contract not be approved, the San Antonio Fire Department (SAFD) would not have a contract in place to provide the City with crucial updates and support as needed for the Computer Aided Dispatch system.
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 sole source, and Contract Disclosure Forms are not required.