S10-E25805 - Approve an Ordinance awarding a sole source Agreement to B-cycle LLC for bike equipment, replacement parts and installation, in an amount not to exceed $4,083,003.00 for the Planning & Development Department.
Specific Explanation:
The Director of the Planning & Development Department (P&D) and Chief Procurement Officer recommend that City Council approve an Ordinance awarding sole source agreement for a three-year term to B-cycle LLC for bike equipment, replacement parts and installation, in an amount not to exceed $4,083,003.00 for the Planning & Development Department.
The scope of work requires the contractor to provide all required supervision, labor, materials, tools, equipment, insurance and transportation and expenses necessary for the purchase and installation of 71 bike kiosk stations and 568 bicycles, as specified in the Advanced Funding Agreement (AFA) with TxDOT, approved by Council on August 24, 2016. P&D sponsored an application to expand the city bike share program known as Houston B-cycle and was awarded grant funding that will assist with 80% of expansion project costs. The City’s bike share operator, Houston Bike Share, will provide the 20% local matching fund requirement as stated under the recently amended Bike Share Agreement.
In 2012, a group of volunteers worked with the City of Houston to establish Houston Bike Share (HBS), a 501(c)(3) non-profit organization, to operate Houston B-cycle. Under an agreement executed between HBS and the City on August 6, 2012, HBS was responsible for managing the implementation and operation of a bike sharing demonstration project. This project initially began with 3 bike kiosks and 18 bicycles that were installed at City Hall, George R. Grown Convention Center, and Market Square Park through the current bike-share contractor (B-cycle LLC) to furnish and install the initial kiosk stations and bicycles for the bike-share demonstration system. After launching this “pilot” program, the bike share system has now expanded to 33 kiosks and 225 bicycles throughout the downtown area and adjacent neighborhoods which include Montrose, Midtown, East End, Heights, Downtown, and the Museum District.
Houston B-cycle’s Phase-III expansion will add 71 bike station kiosks, 568 bicycles and 2 transport vehicles (under a separate purchase) to the existing bike share network. The bike share system becomes more useful as new stations are added by connecting more neighborhoods to job centers and recreational destinations. HBS will oversee the implementation of this phase at Rice University, the Texas Medical Center, University of Houston Main Campus, University of Houston-Downtown, Texas Southern University and surrounding neighborhoods.
In effort to expand the City’s bike-share program with a seamless integrated system, the City must contract with the current provider, B-cycle LLC, who is owner of the existing proprietary software, bike design, dock design and kiosk technology. If purchased from other competitors, these additional bikes and kiosk stations would not be able to communicate or dock with the existing equipment. A cost analysis confirmed that it would be cost-prohibitive to remove and replace all existing 33 stations with another competitor’s versions and models of bike kiosk stations and software. The current bikes interface into the kiosks through a proprietary docking system, and only B-cycle LLC bicycles will fit into a B-cycle dock. Other vendors bicycles will not physically dock into a B-cycle kiosk station. Lastly, software of other vendors is not compatible with the existing bike-share system. This software is essential for communicating between stations and apps used by B-cycle customers.
M/WBE Participation:
M/WBE zero-percentage goal document approved by the Office of Business Opportunity.
Pay or Play Program:
The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors. In this case, B-Cycle LLC shall provide health benefits to eligible employees in compliance with City policy.
Hire Houston First:
This procurement is exempt from the City’s Hire Houston First Ordinance because it involves the use of federal funds and is subject to specific procurement rules of the federal government.
Fiscal Note:
Funding for this item is included in the FY17 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
____________________________________ ____________________________________
John J. Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
Estimated Spending Authority:
|
DEPARTMENT
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FY2017
|
OUT YEARS
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TOTAL
|
|
Planning & Development Department
|
$1,400,000.00
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$2,683,003.00
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$4,083,003.00
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