ORDINANCE awarding contract to SOUTHWEST TEXAS EQUIPMENT DIST., INC, dba QBR LEASING for Ice Machine Rental Services for Various Departments; providing a maximum contract amount - 3 Years with two one year options - $2,054,481.60 - General, Enterprise and Other Funds

Formal Bids Received for S72-L26004 - Approve an ordinance awarding a contract to Southwest Texas Equipment Dist., Inc DBA QBR Leasing, (formally known as QBR Sales) in an amount not to exceed $2,054,481.60 for ice machine rental services for various departments. 

Specific Explanation:

The Chief Procurement Officer recommends that City Council approve an ordinance awarding a three-year contract with two one-year options to Southwest Equipment Dist., Inc, DBA QBR Leasing, (formally known as QBR Sales) on its low bid meeting specifications for ice machine rental services in a total amount not to exceed $2,054,481.60 for the City of Houston various departments.

This project was advertised in accordance with the requirements of the State of Texas bid laws. Twenty-one prospective bidders downloaded the solicitation document from the SPD’s e-bidding website, and three bids were received as outlined below:

                Company                                                         Total Amount

1. QBR Leasing                                                         $2,054,481.60

2. Chef Mart Restaurant Supply                                 $2,797,401.00(Partial Bid)

3. ISI Commercial Refrigeration                                 $6,540,996.00

The scope of work requires the contractor to furnish all supervision, labor, parts, tools, materials, equipment, supplies, and transportation necessary to provide new ice machines for use at various City facilities. The services to be provided include, but are not limited to the furnishing of the ice machines, warranty, preventive maintenance services, repairs, parts, delivery and pick-up, and the training of department personnel in the routine daily maintenance procedures.

M/WBE Participation:

This invitation to bid was issued as a goal-oriented contract with a 11% M/WBE participation level. QBR Leasing has designated the below-named company as its certified M/WBE subcontractor.

Name                             Type of Work                          Dollar Amount         Percentage

HIS Mechanical        Preventative Maintenance                $225,992.97                11%

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, QBR Leasing shall provide health benefits to eligible employees in compliance with City policy.

Hire Houston First:

The proposed contract requires compliance with the City’s ‘Hire Houston First’ ordinance that promotes economic opportunity for Houston businesses, while supporting job creation. In this case, QBR Leasing does not meet the requirements for HHF designation; and no firms were within three-percent.

Fiscal Note:

Funding for this item is included in the FY2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ordinance No.:2014-1078.

__________________________________                                   ______________________________

Jerry Adams, Chief Procurement Officer                                    Department Approval Authority

Strategic Procurement Division

                                         ESTIMATED SPENDING AUTHORITY

$5,474.61 –   Planning and Development Department Special Revenue Fund (2308)

$117,377.30 – HAS Revenue Fund (8001)

$1,139,789.54 – General Fund (1000)

$99,206.07 – Fleet Management Fund (1005)

$11,134.80 – Park Special Revenue Fund (2100)

$57,740.40 – Parks Golf Special Revenue Fund (2104)

$11,134.80 – Project Cost Recovery Fund (1001)

$93,359.81 – Dedicated Drainage & Street Renewal Fund (2310)

$400,318.16 – Water and Sewer System Operating Fund (8300)

$34,998.00 – Building Inspection Fund (2301)

$83,948.11 – Stormwater Fund (2302)

Total- $2,054,481.60