ORDINANCE amending Ordinance No. 2013-0883 (Passed on October 2, 2013) to increase the maximum contract amount for contract between the City of Houston and EAN HOLDINGS, LLC for Vehicle Leasing Services Citywide - $2,190,000.00 - Enterprise and Building Inspection Funds

S50-L24630-A1 - Approve an Amending Ordinance to increase the maximum contract amount from $7,300,000.00 to $9,490,000.00 for Contract No. 46000012343 between the City of Houston and EAN Holdings, LLC for Vehicle Leasing Services Citywide.

Specific Explanation:
City Purchasing Agent recommends that City Council approve an amending ordinance to increase the maximum contract amount from $7,300,000.00 to $9,490,000.00 for the contract between the City of Houston and EAN Holdings, LLC for vehicle leasing services Citywide.

This contract was awarded on October 2, 2013, by Ordinance No. 2013-0883, for a three-year contract with two one-year options for a total five-year term, in the original amount of $7,300,000.00. Expenditures as of October 2, 2015 totaled $4,546,421.16. Due to the request of an additional department to be added to the contract the additional spending authority is needed to allow these vital services to continue through the contract term.

The scope of work requires the contractor to continue providing a large selection of vehicles of various colors, sizes and models. The vehicles must be no more than two years old, have no more than 20,000 miles on the odometer at the time of lease and must have no external or internal leasing or company markings. The contractor shall continue handling all documents related to any lease in strictest confidentiality, as the Houston Police Department and the Department of Public Works and Engineering will continue to use the vehicles leased under this contract for undercover operations. Any breach in confidentiality will be cause for immediate cancellation of the contract. As part of the lease price, the contractor shall continue to provide vehicle maintenance as requested by the City on the leased vehicle(s) and exchange leased vehicles on an "as needed" basis.

M/WBE Subcontracting:
This contract was awarded with a 5% M/WBE participation level. EAN Holdings, LLC is currently achieving 4.86%.  EAN Holdings, LLC is looking to add more M/WBE participation to increase their current goal.   The Office of Business Opportunity will continue to monitor this contract.

Hire Houston First:
The proposed contract requires compliance with the City’s Hire Houston First Ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, no Hire Houston First firms were within three percent.

Pay or Play Program:
The City's 'Pay or Play' Program was waived.

__________________________________                ___________________________________

Calvin D. Wells, City Purchasing Agent                   Department Approval Authority Signature

Finance/Strategic Procurement Division

Estimated Spending Authority

Ordinance No. 2013-0883 – Passed October 2, 2013

$1,412,000.00 – Building Inspection Fund (2301)

$   778,000.00 – Water & Sewer System Operating Fund (8300)

$2,190,000.00 – Total: