DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
1/14/2021 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 $461,400.00. 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. River Birch Way, LLC dba Batteries Plus Bulbs and Genuine Parts Company (NAPA) for Automotive, Industrial, and Utility Batteries, $375,000.00 annually (2 contracts, Solid Waste Management, Building & Equipment Services, Fire, and Aviation Departments)
B. Ask Reply, Inc. dba B2GNOW for B2GNOW Software for EDD, $86,400.00 annually for initial term; $435,570.00 contract term (1 contract, Economic Development and Public Works Departments)
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. River Birch Way, LLC dba Batteries Plus Bulbs and Genuine Parts Company (NAPA) for Automotive, Industrial, and Utility Batteries, $375,000.00 annually, upon award though December 31, 2023 with two, one-year renewal options - will provide automotive, industrial, and utility batteries to support various types of vehicles and equipment. Units utilizing the batteries include passenger vehicles, emergency, light, medium, and heavy-duty trucks, utility vehicles, and other various equipment. This contract will support vehicles and equipment utilized throughout the City.
Sole Source:
B. Ask Reply, Inc. dba B2GNOW for B2GNOW Software for EDD, $86,400.00 annually for initial term; $435,570.00 contract term, upon award through December 31, 2023 with two, one-year renewal options - will provide for the Economic Development and Public Works Departments with a maintenance and support agreement for the B2GNow Diversity Management system used by the City to meet its business diversity and prevailing wage tracking program requirements. Additionally, this contract provides the City with a one-way feed of vendor information into the Central Vendor Registration System so that Small, Minority and Woman Owned Businesses can be targeted for bidding opportunities.
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. Automotive, Industrial, and Utility Batteries - 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 awards are to the lowest responsive bidders, who are also local businesses. Therefore, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
B. B2GNOW Software for EDD -
This contract is an exception to the SBEDA and Local Preference Programs.
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. Automotive, Industrial, and Utility Batteries - Should this contract not be approved, the City would be required to purchase automotive, industrial and utility batteries on an as needed basis, which could result in higher costs and/or equipment down time for units utilized by the departments.
B. B2GNOW Software for EDD - Should this contract not be awarded, monitoring for SBEDA, DBE and prevailing wage contract requirements would not operate to the degree it does today, until replacement software was identified. In addition, the data from B2GNow would have to be transferred to a new system and all users, both City staff and COSA vendors, would have to be trained on a new system to meet SBEDA, DBE and prevailing wage contract requirements.
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.