S19-T24654.A3 - Approve an ordinance authorizing a second amendment to Contract No. 4600013153 between the City of Houston and Coca-Cola Southwest Beverages, LLC. (approved by Ordinance No. 2015-0064, passed on January 28, 2015) to extend the contract term from November 5, 2025 to May 5, 2026 for soft drink marketing partnership for various Departments.
Specific Explanation:
The Chief Procurement Officer recommends that City Council approve an ordinance authorizing a second amendment to the contract between the City of Houston and Coca-Cola Southwest Beverages, LLC to extend the contract term from November 5, 2025 to May 5, 2026 for soft drink marketing partnership for various Departments.
This contract was awarded on January 28, 2015, by Ordinance No. 2015-0064, for a five-year term with five one-year options in the estimated revenue amount of $3,859,261.20 and was subsequently amended on April 30, 2025, by ordinance No. 2025-0328, to extend the contract term from May 5, 2025 to November 5, 2025. Commission revenues as of October 16, 2025 totaled $3,230,174.11 and sponsorship revenues totaled $800,000.00 for a total aggregate amount of $4,030,174.11 In consideration for this contract term, the contractor has agreed to honor its ten-year pricing and all other terms and conditions through May 5, 2026. The extension of the contract term will allow the City to continue with soft drink marketing partnership services until a new contract is awarded.
The scope of work requires the contractor to furnish all labor, personnel, management, supervision, and transportation necessary to provide 238 soft drink vending machines, including soft drinks, bottled water, and juice drinks. These vending machines are installed at department locations citywide, including general services, public works, airports, parks and recreation, administrative and regulatory affairs, and health departments.
M/WBE Subcontracting
The contract was awarded with a 15% participation goal. Coca-Cola Southwest Beverages, LLC. is currently achieving 148.91% of the required M/WBE goal.
Fiscal Note:
There is no impact to the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jedediah Greenfield Department Approval Authority Signature
Chief Procurement Officer
Finance/Strategic Division