DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
2/18/2021 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 $11,240,000.00. 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. Texas Chiller Systems for Ice Sheet Chiller Maintenance at the Alamodome, $36,000.00 annually; $180,000.00 contract period (1 contract, Convention & Sports Facilities)
B. Southwest Companies dba Southwest Wheel for Medium & Heavy Trailer and Tarps - Parts and Service, $110,000.00 annually (1 contract, Solid Waste Management & Public Works)
C. Siddons Martin Emergency Group, LLC. for Fire Apparatus PM & Inspection, $94,000.00 annually (1 contract, Fire Department)
D. Truman Arnold Companies dba TAC Energy for Gasoline and Diesel Fuels, $11,000,000.00 annually (1 contract, Building and Equipment Services)
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. Texas Chiller Systems for Ice Sheet Chiller Maintenance at the Alamodome, $36,000.00 annually; $180,000.00 contract period, upon award through September 30, 2023 with two, one-year renewal options - will provide preventive maintenance service and repairs on two (2), 240 ton reciprocating ice sheet chillers at the Alamodome for the Convention and Sports Facilities Department. This service is needed by the Alamodome to maintain two ice skating sheets year-round for various types of events. Services will be performed on a monthly, annual, and on an on-call basis for immediate needs. Monthly and annual maintenance for the chiller system includes inspection of parts and fluid levels in components such as compressors, controls, pumps, and condensers. Contractor will also perform an operational test on equipment to ensure it is in proper working order.
B. Southwest Companies dba Southwest Wheel for Medium & Heavy Trailer and Tarps - Parts and Service, $110,000.00 annually, upon award through December 31, 2023, with two, one-year renewal options - will provide the Solid Waste Management Department, Fleet Operations Division, and Public Works with parts and repair services for high capacity trailers and tarp assemblies as well as haul vehicles used to pick up brush throughout the City.
C. Siddons Martin Emergency Group, LLC. for Fire Apparatus PM & Inspection, $94,000.00 annually, April 1, 2021 through March 31, 2024, with two additional one-year renewal periods - will provide annual preventive maintenance inspections and annual pump performance test of fire apparatus in the San Antonio Fire Department’s (SAFD) inventory on an as needed basis. The SAFD’s fleet inventory includes 95 fire apparatus vehicles, including fire engines, aerial trucks, front line and reserve vehicles. Preventive maintenance, inspections, annual pump performance test are required to be in compliance with the National Fire Protection Association (NFPA) 1911 standard.
D. Truman Arnold Companies dba TAC Energy for Gasoline and Diesel Fuels, $11,000,000.00 annually, April 1, 2021 through March 31, 2024, with two, one-year renewal options - will provide the Building and Equipment Services Department (BESD) with unleaded gasoline with a maximum 10% ethanol blend (E10), #2 Ultra Low Sulfur Diesel and #2 Ultra-Low-Sulfur Non-Road Red Dyed Diesel Fuel. The #2 Ultra Low Sulfur Diesel is used for on road vehicles and the #2 Ultra-Low-Sulfur Diesel Non-Road Red Dyed is used for heavy equipment non-road units utilized by the City of San Antonio, with tanks segregated for these purposes.
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. Ice Sheet Chiller Maintenance - 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.
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 (VOSBPP) does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Medium & Heavy Trailer and Tarps - Parts and Service - 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.
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 goods/supplies contracts, so no preference was applied to this contract.
C. Fire Apparatus PM & Inspection - 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 non-professional services contracts, so no preference was applied to this contract.
D. Gasoline and Diesel Fuels - 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. Ice Sheet Chiller Maintenance - Should this contract not be approved, the Convention and Sports Facilities Department will be required to procure parts and preventive maintenance on an as needed basis, thus not realizing the benefit of contract pricing. Performing the services in-house will require additional staff, equipment, and materials.
B. Medium & Heavy Trailer and Tarps - Parts and Service - Should this contract not be approved, the City would be required to purchase parts off contract which could result in higher costs and/or equipment down time for units utilized by the departments.
C. Fire Apparatus PM & Inspection - Should this contract not be approved, the SAFD would be required to contract with another third-party inspector on an as needed basis in order to be in compliance with the annual required NFPA 1911 standard. Obtaining inspections on an as needed basis could increase the inspection costs due to non-contract buying. Lack of a contract could affect the operational status of the fire apparatus vehicles which could negatively impact the availability of emergency services to the residents of San Antonio.
D. Gasoline and Diesel Fuels - Should this contract not be approved, the City would be unable to support the fueling needs of gasoline and diesel-powered vehicles and equipment used in the City’s fleet. Furthermore, lack of a contract may hinder efficient delivery and supply of fuel, wherein increased cost due to non-contract buying could be realized as well, thus compromising timely delivery of essential services to the residents of San Antonio.
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.