DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
6/3/2021 Annual Contracts
SUMMARY:
An ordinance awarding six 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 $1,557,606.00. 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. San Antonio Lighthouse for the Blind and Nestle Waters North America, Inc. for Bottled Water Services, $133,000.00 annually (2 contracts, Citywide)
B. Hearst Corp dba San Antonio Express-News and SA Legal News, LLC dba The Hart Beat for Official and Other Newspaper Advertising, $400,000.00 annually (2 contracts, Citywide)
C. Consolidated Traffic Controls, Inc. for Traffic Signal Steel Poles, $774,000.00 annually (1 contract, Public Works Department)
D. Konica Minolta Business Solutions USA, Inc. for amendment to Annual Contract for Print Management Solution for San Antonio Public Library, $250,606.00 annually; $1,253,028.00 total amendment value (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. San Antonio Lighthouse for the Blind and Nestle Waters North America, Inc. for Bottled Water Services, $133,000 annually, upon award through December 31, 2023 with two, one-year renewal options - will provide various City departments with a vendor to provide and deliver gallon water, bottled water, plastic cups, and water dispensing units on an “as needed” basis. The water ordered will be for five (5) gallon plastic containers, one (1) gallon distilled plastic containers, 16.9-ounce bottles, eight (8) ounce bottles, and will also include rental of water dispensers. Additionally, the scope of work shall include, but is not limited to, furnishing product, equipment, delivery, and labor. Product shall be delivered to various locations throughout the City.
B. Hearst Corp dba San Antonio Express-News and SA Legal News, LLC dba The Hart Beat for Official and Other Newspaper Advertising, $400,000.00 annually, upon award through March 31, 2024, with two, one-year renewal options - will provide newspaper and internet advertisements of official legally required and not-legally required notices for various City departments, including but not limited, to official bid notices, election notices, annexation notices, and advertisements for City job openings. The advertisements are for legally required notices and items of general interest.
C. Consolidated Traffic Controls, Inc. for Traffic Signal Steel Poles, $774,000.00 annually, upon award through September 30, 2024, with two, one-year renewal options - will provide the Public Works Department, Traffic Operations Division, with a vendor to furnish and deliver steel traffic signal poles. These poles will be utilized in the construction of traffic signals at various locations throughout the City to mount traffic signal equipment at street intersections.
D. Konica Minolta Business Solutions USA, Inc. for amendment to Annual Contract for Print Management Solution for San Antonio Public Library for a technology management system for public computer reservations, sessions, and associated computer lab services for the San Antonio Public Library system, $250,606.00 annually; $1,253,028.00 total amendment value, June 3, 2021 through May 31, 2026 - This amendment to City approved Ordinance 2015-06-18-0525 awarded to Konica Minolta will extend the term of the contract by five additional years to continue the current print management solution lease for the San Antonio Library. The print management solution includes PC reservation/session management; access to an increased range of office services (e.g. black & white copying/printing, color copying/printing, scanning, and faxing); and a convenient means for patrons to pay Library fines and fees through one portal (i.e. through self-service kiosks or a website).
This purchase is made utilizing the TexBuy AEPA Purchasing Cooperative, IFB#021-C and will be made in accordance with the Region 16 Education Service Center Purchasing Cooperative known as TexBuy passed on Ordinance No. 2015-06-18-0525 dated June 18, 2015.
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. 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.
Items 1, 2 and 5 are awarded to the low responsive bidder which is a non-profit and not eligible for local preference.
In accordance with the Local Preference Program, no local preference was applied to Items 4 and 6 since the local bidder is not within 3% of the recommended lowest non-local bidder.
In accordance with the Local Preference Program, no local preference was applied to Items 3 and 7 since there were no bids submitted from local bidders.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
B. 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 non-professional services contracts, so no preference was applied to this contract.
C. 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 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.
D. Amendment to Annual Contract for Print Management Solution for San Antonio Public Library -
This amendment 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. Bottled Water Services - Should this contract not be approved, the Departments, Citywide will be required to process individual procurements to provide bottled drinking water services. Individual purchases will increase both the cost of product and administrative expenses to the City.
B. Official and Other Newspaper Advertising - Should this contract not be approved, various City departments would be required to procure advertisement services on an as needed basis wherein increased costs due to non-contract buying could be realized. As a result, this would delay publication of legal notices and items of general interest to the citizens of San Antonio.
C. Traffic Signal Steel Poles - Should this contract not be approved, the Public Works Department will be required to procure materials on an as needed basis. Due to the nature of this product, long delivery lead times are anticipated therefore non-contract buying could impact the timely completion of traffic signalization projects.
D. Amendment to Annual Contract for Print Management Solution for San Antonio Public Library - Should this amendment not be approved, the Library will have to consider an alternative method of providing public photocopying services. Any alternative method may result in a lapse of service for an unspecified time. Patrons would also not gain access to highly sought office services like scanning, faxing, and color copying/printing.
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 amendment, and Contract Disclosure Forms are not required.