O 2020-0378 ORDINANCE approving and authorizing a contract between the City of Houston and JPMORGAN CHASE BANK, N.A.  for a Purchasing Card Program - 3 Years with two one-year options - Revenue

Request for Proposals Received March 7, 2019 for S36-T28733 - Approve an ordinance awarding a Professional Services revenue contract to JP Morgan Chase Bank, N.A. for City of Houston Purchasing Card Services.

 
Specific Explanation:
The Chief Procurement Officer recommends that City Council approve an ordinance awarding a three-year professional services revenue contract, with two one-year options to JP Morgan Chase Bank, N.A. for the City of Houston Purchasing Card Services. The Chief Procurement Officer may terminate this contract at any time upon 30-days written notice to the contractor.

The scope of work requires the contractor to provide labor, materials, equipment, and supervision required to maintain and support the online web-based solution for the Purchasing Card Services Program. The purchasing card provides authorized employees with a tool to purchase materials, equipment, supplies, and services, within established purchasing limits, to meet the immediate operational needs of the departments. The Purchasing Card Services Program includes a Rebate/Revenue Sharing component, which allows the City to receive rebates based on annual charge volume.  The Program generated a total rebate of $389,123.83 in Fiscal 2018.

The Request for Proposals (RFP) was advertised in accordance with the State of Texas bid laws, and as a result, proposals were received from five (5) firms: Bank of America, N.A., JP Morgan Chase Bank, N.A., PNC Bank, US Bank, and Wells Fargo Bank, N.A. The evaluation committee consisted of evaluators from the Houston Public Works, Houston Police, and Houston Information Technology Services Departments, and the Houston Airport System. The evaluation was based on the following criteria:

1. Responsiveness of Proposal
2. Technical Competence
3. Price

JP Morgan Chase Bank, N.A. received the highest overall score and was deemed the best qualified to perform the requirements as outlined in the RFP.

MWBE Participation:
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, the contractor 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 opportunity for Houston businesses and supports job creation.  In this case, JP Morgan Chase Bank, N.A. does not meet the requirement for HHF designation; no HHF firms were within three percent.

Fiscal Note:
There is no impact to the fiscal budget; therefore, no fiscal note is required.