DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
2/4/2021 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 $507,000.00. 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. Alamo Distribution LLC dba Alamo Iron Works and HD Supply Construction Supply, LTD for Reinforced Steel and Wire Mesh, $67,0000.00 annually (2 contracts, Public Works)
B. Samuels Glass Company for Building Glass Maintenance and Replacement, $201,000.00 annually (1 contract, Citywide)
C. Helena Agri Enterprises for Herbicides, $239,000.00 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. Alamo Distribution LLC dba Alamo Iron Works and HD Supply Construction Supply, LTD for Reinforced Steel and Wire Mesh, $67,0000.00 annually, upon award through December 31, 2023, with two, one-year renewal options - will provide the Public Works Department with a contractor that will furnish and deliver reinforcing steel, welded wire and dowels for the maintenance and repair of city highways, streets and bridges.
B. Samuels Glass Company for Building Glass Maintenance and Replacement, $201,000.00 annually, upon award though October 31, 2023 with two, one-year renewal options - will provide full service glass maintenance, repair and replacement services for various City Departments on an as-needed basis. The contractor will provide all the necessary labor, materials, service equipment, tools, transportation, supervision, supplies, etc. to replace broken glass at various locations. These glass replacement services are required to preserve the safety, reliability and functionality of buildings at various City facilities throughout the city.
C. Helena Agri Enterprises for Herbicides, $239,000.00 annually, upon award though March 31, 2024 with two, one-year renewal options - will provide the Public Works Department, Storm Water Operations Division, with a contractor to furnish and deliver various herbicides and materials assisting in controlling vegetation for invasive species within our natural areas and eradication of vegetation within our improved concrete channels.
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. Reinforced Steel and Wire Mesh
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.
Item 1 and 3: The recommended award is to the lowest responsive bidder, who is also a local business, therefore application of the Local Preference Program was not required.
Item 2: In accordance with the Local Preference Program, the local bidder is not within 3% of the recommended lowest non-local bidder, 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. Building Glass Maintenance and Replacement
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, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to non-professional services contracts, so no preference was applied to this contract.
C. Herbicides
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.
ALTERNATIVES:
A. Reinforced Steel and Wire Mesh - Should this contract not be approved, the Public Works Department would be required to purchase materials on an as needed basis where increased costs and delivery times would be realized delaying the completion of ongoing maintenance and repair of City highways, streets and bridges.
B. Building Glass Maintenance and Replacement - Should this contract not be approved, the City will be required to purchase glass replacement and window tinting services on an as needed basis. Lack of a contract could result in increased costs and delayed delivery times.
C. Herbicides - Should this contract not be approved, the Public Works Department, Storm Water Operations Division, will be required to process individual procurements as needs arise. In addition, the department will not realize fixed pricing and order consolidation cost savings associated with having a term contract in place.
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.