Request for Proposals received August 9, 2018 for S17-T26417: Approve an ordinance awarding a revenue contract to PropertyRoom.com, Inc., for the sale and disposal of abandoned personal property for the Houston Police Department and the Houston Airport System.
Specific Explanation:
The Chief Procurement Officer recommends that City Council approves an ordinance awarding a three-year contract with two one-year options to the sole respondent, PropertyRoom.com, Inc., for the sale and disposal of abandoned personal property for Houston Police Department and Houston Airport System. The Chief Procurement Officer may terminate this contract at any time upon 30-days written notice to the contractor.
The contractor is required to be responsible for the sale/auction and final disposal of all property that is taken into their possession from the Houston Police Department (HPD) and Houston Airport System (HAS) that is considered abandoned personal property. Contractor is required to provide all labor, equipment, transportation, barcoding, repairs, collections, delivery and security for the items taken into its possession and dispose of those items that do not sell or are deemed to have no market value. The contractor will receive 50% of the total winning bid if the sale amount is $1,000.00 or below. For sale amounts in excess of $1,000.00, the contractor will receive 50% of the first $1,000.00, plus 25% of the sale amount in excess of $1,000.00. In cities where this program was implemented, revenues have increased substantially. Projected revenues to the City are estimated to exceed $250,000.00 over the five-year contract term.
This Request for Proposals (RFP) was advertised in accordance with the requirements of the State of Texas bid laws. As a result, a sole proposal was received from PropertyRoom.com, Inc., the incumbent contractor currently providing the sale and disposal of abandoned personal property services for HPD. Subsequent to the receipt of the proposal the Strategic Procurement Division contacted prospective proposers to determine the reason for the limited response to the RFP. Potential respondents advised that they did not have the necessary resources to meet the requirements specified in the RFP. The evaluation committee consisted of members from HPD and HAS.
The proposal was evaluated based upon the following criteria:
1. Responsiveness of Proposal
2. Technical Competence/Requirements
3. Team Composition and Experience
4. Price/Cost Proposal
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, PropertyRoom.com, Inc., provides 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 (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, PropertyRoom.com, Inc., doesn't meet the requirements for HHF designation.
Fiscal Note:
Revenue for this item is included in the FY20 adopted budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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_______________________________________
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___________________________________
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Jerry Adams, Chief Procurement Officer
Finance/Strategic Procurement Division
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Department Approval Authority
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ESTIMATED REVENUE
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DEPARTMENT
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FY2020
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OUT YEARS
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TOTAL
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Houston Airport System
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$35,000.00
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$140,000.00
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$175,000.00
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Houston Police Department
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$25,000.00
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$100,000.00
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$125,000.00
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Total
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$55,000.00
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$240,000.00
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$300,000.00
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