Request for Proposal for S10-T25585 - Approve an ordinance awarding a sole bid revenue contract to Zipcar, Inc., for a City of Houston car-sharing pilot program for the Administration and Regulatory Affairs Department.
Specific Explanation:
The Director of the Administration and Regulatory Affairs Department (ARA) and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year sole bid revenue contract with two one-year options to Zipcar, Inc. for a revenue-based City of Houston car-sharing pilot program for ARA.
Car-share is a membership program with a fleet of on-demand self-service vehicles located throughout a service area, which can be rented by hour or by the day, and are accessible by an automated online reservation and billing system. Car-share complements the use of public transportation by providing an option for shorter time and shorter distance trips that might not otherwise be practical using transit. Accommodation of car-share services in the public right-of-way encourages car sharing by providing visible, readily available locations for the public to utilize car-share. It is estimated that for every car-share vehicle, nine to 13 vehicles are shed as car-share customers are apt to refrain from purchasing a second vehicle or replacing an existing vehicle. Accommodation of car-share services can positively impact air quality and potential mitigation of traffic.
This contract allows for the implementation of membership-based car-sharing service at City-owned and managed parking facilities. The off-street locations include nine spaces at five City libraries and allows the City to add additional locations with the Director’s approval. Each space is leased at $50 per month by the Contractor. Additionally, the contract will allow ARA Department to pilot on-street car share and compile data for an 18-month period in the Midtown District. At the conclusion of the 18-month pilot program, ARA Department will make a recommendation to City Council whether the on-street program should be continued and be integrated with the Code of Ordinances, or be amended and repealed. The estimated revenue to the City is $100 per month for each metered space, and $50 per month for each non-metered parking space.
The scope of work requires the Contractor to provide all labor, parts, materials, equipment, expenses, transportation and supervision necessary to provide basic services for the Car-Share Houston Pilot Program for fleet management of on-demand, self-service vehicles available for customers to rent on an hourly basis, and for the provision of related services at dedicated on-street parking spaces within the Midtown District of City of Houston locations.
This Request for Proposal (RFP) was advertised in accordance with the requirements of the State of Texas bid laws. Fifty prospective proposers downloaded the solicitation document from SPD’s e-bidding website, and as a result, one proposal was received from Zipcar, Inc. The evaluation committee was composed of three evaluators from ARA. The proposal was evaluated based upon the following criteria:
* Responsiveness to Proposal
* Technical Requirements
* Rate Schedule/Revenue Sharing Solution
M/WBE Subcontracting:
The RFP was issued as a goal-oriented contract with an 11% goal for M/WBE participation level. Zipcar, Inc. has designated the below-named company as its certified M/WBE subcontractor.
Name Type of Service Dollar Amount
Ortega Automotive Oil, Filter, Tire Services $1,980.00
[The computation for the above-listed dollar amount is as follows: Five-year projected revenue earnings of an estimated $18,000.00, and 11% from this sum equals $1,980.00 M/WBE subcontracting participation off this contract.]
The Office of Business Opportunity will monitor this award.
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, Zipcar, Inc. provides benefits for some employees but will pay into the Contractor Responsibility Fund 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, Zipcar, Inc. does not meet the requirements of Hire Houston First, and no local firms were within three percent of the proposed contract fee.
Fiscal Note:
Funding for this item is included in the FY17 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
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John Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance Department/SPD