DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
5/20/2021 Annual Contracts
SUMMARY:
An ordinance awarding five 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 $1,622,172.70. 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. BG Interpool, Inc. for Main Plaza Fountains Chemical Treatment and Maintenance, $63,000.00 annually (1 contract, Center City Development and Operations)
B. Vulcan Construction Materials, LLC. and Brauntex Materials, Inc. for Ready Mix Concrete, $908,000.00 annually (2 contracts, Public Works Department)
C. T&W Tire for Emergency Vehicle Tires, $605,000.00 annually (1 contract, Fire Department)
D. OCLC, Inc. for Automated Cataloging for San Antonio Public Library, $46,172.70 year 1; $255,133.31 contract period (1 contract, San Antonio Public Library)
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. BG Interpool, Inc. for Main Plaza Fountains Chemical Treatment and Maintenance, $63,000.00 annually, upon award through December 31, 2023 with two, one-year renewal options - will provide the Center City Development and Operations Department (CCDO) with a program for chemical treatments and pump maintenance for six (6) Public Interactive Water Features (PIWF) located at Main Plaza. The chemical treatments are required to protect the public from any water contact contamination. Contractor will provide monthly maintenance services, chemical treatments and repairs in accordance with Texas Department of State Health Services for Public Interactive Water Features.
B. Vulcan Construction Materials, LLC. and Brauntex Materials, Inc. for Ready Mix Concrete, $908,000.00 annually, upon award through September 30, 2024 with two, one-year renewal options - will provide Public Works Department with various grades of ready mix concrete. The contract provides the option to pick up the ready mix concrete or have it delivered to a City specified location. This concrete material will be utilized for various applications such as sidewalks, curbs, retaining walls and other construction projects throughout the City.
Cooperative:
C. T&W Tire for Emergency Vehicle Tires, $605,000.00 annually, upon award through November 30, 2024, with five, one year renewal options - will provide the Fire Department with high performance Michelin truck tires for the Department’s emergency vehicle fleet. These tires will equip Light-Duty vehicles (3/4 ton to 1 ½ ton) including ambulances, first responders, and command vehicles; and Heavy Duty vehicles (2 ton and greater) including Fire Engines, Aerial Ladder Trucks, Water Tankers, Heavy Rescue vehicles and Brush Trucks.
The proposed Michelin tires are first line and manufactured to Original Equipment Manufacturer specifications. Prior experience has demonstrated that these higher quality tires offer improved reliability and greater re-treadability providing longer use and re-use.
This purchase is made in accordance with the U.S. Communities (Omnia Partners) Cooperative Program passed through Ordinance 98797 Dated 2/12/2004.
Sole Source:
D. OCLC, Inc. for Automated Cataloging for San Antonio Public Library, $46,172.70 year 1; $255,133.31 contract period, July 1, 2021 through June 30, 2022, with four additional one-year renewal options - will provide the continuation of automated cataloging services for the San Antonio Public Library (SAPL) system.
The San Antonio Public Library (SAPL) is accredited by the Texas State Library and Archives Commission which provides SAPL patrons access to state and national resource sharing networks to help meet the educational, informational and economic needs of the citizens. Libraries that are accredited are eligible for certain services from the Texas State Library including participation in the TexShare databases consortium, TexShare reciprocal borrowing program, interlibrary loan program, e-rate discounts and competitive grants.
The Texas State Library and Archives Commission (TSLAC) has a contract with OCLC to provide the infrastructure for the statewide interlibrary loan service through its Texas Group Catalog and Navigator system. For the SAPL to maintain its accreditation and participate in the interlibrary loan program, it is required to use the same infrastructure and bibliographic database as the TSLAC. OCLC is the only source from which SAPL may obtain the Cataloging and Metadata Subscription that is required to participate in the TSLAC interlibrary loan program.
These items are being purchased as Sole Source according to the provisions of Texas Statutes 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. Main Plaza Fountains Chemical Treatment and 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 does not apply to non-professional service contracts, so no preference was applied to this contract.
B. Ready Mix Concrete
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.
Section I - Items 1-3, 5, and 7-8: 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.
Section II - Items 9 - 15: In accordance with the Local Preference Program, no local preference was applied, since and the local bidder is not with 3% of the recommended lowest non-local bidder.
Section III - Items 16-18, 20, and 22-24: 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 does not apply to goods/supplies contracts, so no preference was applied to this contract.
C. Emergency Vehicle Tires -
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.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
D. Automated Cataloging for San Antonio Public Library -
This contact is an exception to the SBEDA and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
A. Main Plaza Fountains Chemical Treatment and Maintenance - Should this contract not be approved, the department would be required to acquire the services on an as-needed basis which could result in higher costs and delays in the timely receipt of maintenance and repair services. In addition, the department will not realize fixed pricing and order consolidation cost savings associated with having a term contract in place.
B. Ready Mix Concrete - Should this contract not be approved, the Public Works Department will be required to process individual procurements as needs arise which may affect delivery time. The department would not realize the volume cost savings customarily associated with a long term agreement.
C. Emergency Vehicle Tires - Should this contract not be approved, the Fire Department will be required to procure tires and labor on an as needed basis. The City would lose the pricing advantage that is available through a cooperative contract that affords volume discounts. Furthermore, the department’s budget could be negatively impacted through continuous price variations.
D. Automated Cataloging for San Antonio Public Library - Should this contract not be approved, the San Antonio Public Library would be required to procure cataloging services on an as needed basis or resort to manual restoration of millions of catalog records. This process would be labor intensive, costly, and would possibly affect availability of resources for library patrons.
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, cooperative purchasing and sole source; and Contract Disclosure Forms are not required.