DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
11/12/2020 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 $707,000.00. 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. Doggett Freightliner of South Texas & Rush Truck Center-San Antonio for Freightliner, Hino, Peterbilt Parts, $600,000.00 annually (2 contracts, Solid Waste Management Department)
B. Southland Printing Company, Inc. for Aviation Spitter Tickets, $32,000.00 annually; $160,000.00 total contract value (1 contract, Aviation)
C. Structural and Steel Products for Flex Beam and Guard Post, $75,000.00 annually (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.
Contracts procured on the basis of low bid:
A. Doggett Freightliner of South Texas & Rush Truck Center-San Antonio for Freightliner, Hino, Peterbilt Parts, $600,000.00 annually, upon award through September 30, 2023, with two, one year renewal options - will provide the Solid Waste Management Department, Fleet Operations Division, with contractors to furnish replacement parts for Freightliner, Hino, and Peterbilt equipment for in-house repairs. This equipment is utilized for the hauling of brush and refuse collection.
B. Southland Printing Company, Inc. for Aviation Spitter Tickets, $32,000.00 annually; $160,000.00 total contract value, January 1, 2021 through December 31, 2023 with two, one-year renewal options - will provide for the purchase of parking spitter tickets, including printing services and delivery, for the San Antonio International Airport. The Aviation Department’s Parking Division uses spitter tickets for the Airport’s ticket dispensers placed at all revenue generated parking lots throughout airport property. The spitter tickets require printing information of various requirements and contain magnetic stripes that must conform to the operation of the Airport’s installed modular units, ZEAG UCD. The parking spitter tickets will be ordered on an as needed basis.
C. Structural and Steel Products for Flex Beam and Guard Post, $75,000.00 annually, upon award through September 30, 2023, with two, one-year renewals - will provide the Public Works Department with a contractor that will furnish and deliver flex beams and guard posts. These items will be utilized for maintenance and repair of city highways, streets and bridges.
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. Freightliner, Hino, Peterbilt 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.
Item 1: The low responsive bid for item one is Doggett Freightliner of South Texas, a local business; therefore, application of the Local Preference Program was not applied.
Item 2 and 3: The low responsive bid for items two and three is Rush Truck Center-San Antonio, a non-local business. In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended low non-local bidder.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Aviation Spitter Tickets - 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.
C. Flex Beam and Guard Post - 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 (VOSBPP) does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Freightliner, Hino, Peterbilt 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 of equipment and the department will not realize the cost savings customarily associated with long-term agreements.
B. Aviation Spitter Tickets - Should this contract not be approved, the Aviation Department will be required to process individual procurements to purchase spitter tickets on an as needed basis. Procuring outside of a contract will likely result in delivery delays and higher costs.
C. Flex Beam and Guard Post - Should this contract not be approved, the Public Works Department will be required to purchase items 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 if repairs of those items are not made in a timely manner.
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 Contract Disclosure Forms are not required.