DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
4/01/2021 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 $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. Most Dependable Fountains for MDF Fountain, Accessories & Parts, $64,000.00 annually (1 contract, Parks and Recreation)
B. Unified Services of Texas, Inc. for Tank Cleaning and Fuel Circulation Services, $25,000.00 annually; $125,000 total contract value (1 contract, Building and Equipment Services Department)
C. Tamez Refrigeration, Inc. for Appliance Repairs for the San Antonio Fire Department, $151,000.00 annually (1 contract, Fire Department)
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. Most Dependable Fountains for MDF Fountain, Accessories & Parts, $64,000.00 annually, upon award through December 31, 2023 with two, one-year renewal options - will furnish and deliver a full line series of Most Dependable Fountain, Fountain Accessories and repair parts on an as needed basis. These items are primarily used by the Parks and Recreation Department for the purpose of repairing or replacing fountains at parks, and other City property. The fountains will provide outdoor drinking water fountains for people, including their pets. One of the fountains that can be utilized at the park are Bottle Filler Stations. The Pet Drinking Fountains are also located at the Park. This fountain is touch free, because the owner steps on the pedal which then fills the bowl for the animal to drink water. Wall mount fountains can be located on walking trails or by restrooms at different parks throughout the City.
B. Unified Services of Texas, Inc. for Tank Cleaning and Fuel Circulation Services, $25,000.00 annually; $125,000 total contract value, upon award through December 31, 2023, with two, one-year renewal options - will provide the Building and Equipment Services Department with gasoline and diesel fuel tank and line cleaning and fuel circulation services for 33 underground storage tanks with a 1,000 to 20,000-gallon capacity located throughout the City. These services will remove water and debris from the fuel through a circulation and filtration system to ensure compliance with regulations set forth by the U.S. Environmental Protection Agency (EPA) as well as the Texas Commission of Environmental Quality (TCEQ).
C. Tamez Refrigeration, Inc. for Appliance Repairs for the San Antonio Fire Department, $151,000.00 annually, upon award through March 31, 2024 with two, one-year renewal options - will provide the Fire Department with minor repairs, on an as-needed basis, for various appliances owned or operated at 54 fire stations and 7 other fire facilities located within the City of San Antonio. Services include repair of appliances such as refrigerators, ice makers, natural gas and electric stoves, vent hoods, and washer/dryer units.
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. MDF Fountain, Accessories & 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. Tank Cleaning and Fuel Circulation Services - 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 service contracts, so no preference was applied to this contract.
C. Appliance Repairs for San Antonio Fire Department - This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program. Tamez Refrigeration, Inc. is a small, minority-owned firm that will be self-performing the 55% Minority and/ or Women-Owned Business Enterprise (M/WBE) subcontracting goal.
The recommended award is to the lowest responsive bidder, who is 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.
ALTERNATIVES:
A. MDF Fountain, Accessories & Parts - Should this contract not be approved, the Parks and Recreation Department would be required to purchase these items on an as needed basis wherein increased costs and delay in delivery could be realized due to non-contract buying.
B. Tank Cleaning and Fuel Circulation Services - Should this contract not be approved, the City would be required to purchase these services on an as needed basis. Lack of a contract could result in higher costs and/or delay of time for these services to be completed.
C. Appliance Repairs for San Antonio Fire Department - Should this contract not be approved, the Fire Department will be required to procure parts and services for appliance repairs at fire stations and facilities on an as needed basis. Lack of a contract could result in delayed repairs, resulting in an inefficient and less cost effective method of servicing City owned equipment.
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.