HomeMy WebLinkAboutContract 35775-A3 CITY SECRETARY
THIRD AMENDMENT TO CONTRACT NO.
COMMERCIAL CARD AGREEMENT
V 1.0_12_15_08
THIS THIRD AMENDMENT(the"Amendment")between JPMorgan Chase Bank,N.A.(the"Bank"),and City of Fort Worth,a Home-
Rule unicipai Corporation, situated in Tarrant, Denton, Parker, and Wise Counties, Texas (the "Client") is made as of
2012(the"Third Amendment Effective Date").
UJ
WHEREAS,Bank and Client entered into the Commercial Card Agreement(the"Agreement")effective August 31, 2007,which has
been previously amended by the First Amendment to Commercial Card Agreement effective November 9, 2010 and the Second
Amendment to Commercial Card Agreement effective September 1,2010;and
WHEREAS, Client issued REQUEST FOR PROPOSALS for PURCHASING CARD SERVICES ("RFP No. 12-0106") on April 4,
2012;and
WHEREAS, pursuant to RFP No. 12-0106, Bank and Client mutually agree to extend the terms of the Agreement for an additional
period of up to nine years;
NOW THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, The Bank and the Client agree to amend the Agreement, as previously
amended,as follows:
1. Definitions. Capitalized terms used in this Amendment and defined in the Agreement, as previously amended,shall be used
herein as so defined,except as otherwise provided herein.
2. Amendment. The definition of"Contract Documents"in Section 1 of the Agreement is hereby deleted in its entirety
and replaced with the following:
"Contract Documents" means this Agreement, including all duly executed amendments hereto, in conjunction
with(i)City of Fort Worth RFP No.07-0068,(ii)Addendum#1 thereto,(iii)Bank's Proposal submitted in response
to RFP No. 07-0068, (iv)City of Fort Worth RFP No. 12-0106, and (v) Bank's Proposal submitted in response to
RFP No. 12-0106. Clty of Fort Worth RFP No. 07-0068, Addendum #1 thereto, Bank's Proposal submitted in
response to RFP No.07-0068, City of Fort Worth RFP No. 12-0106, and Bank's Proposal submitted in response
to RFP No. 12-0106 are each incorporated herein by this reference."
3. Amendment. The following definition shall be added to Section 1 of the Agreement in the appropriate alphabetical
position:
"Fraudulent Transactions" means transactions made on a Card or Account by a person, other than the Client
or Cardholder, who does not have actual, implied or apparent authority for such use, and from which the
Cardholder or Client receives no direct or indirect benefit."
4. Amendment. Anew Section 2.D shall be added to the end of Section 2 as follows:
D. Notwithstanding the foregoing,Bank shall not be obligated to provide any Account to Client, any Client Affiliate,or any
of its or their respective Cardholders or to process any transactions in violation of any limitation or prohibition imposed by
Applicable Law, including,but not limited to,the regulations issued by the U.S.Department of Treasury's Office of Foreign
Assets Control("OFAC").
5. Amendment.A new Section 3.1 is hereby added to the Agreement,as follows.
The Client shall obtain and provide to Bank such information as Bank may reasonably request, for the purposes of
investigating the identity of an actual or prospective Cardholder or Client,evidencing authority for Card requests,and assisting
in any review of Bank by a regulator with relevant jurisdiction. Any information provided by Client to Bank shall be,to the best
of Client's knowledge,information and belief,accurate and complete in all material respects.
6. Amendment. A new Section 3.J is hereby added to the Agreement,as follows:
Client represents and warrants that, it will use commercially reasonable efforts to ensure that such applicants to whom it
requests Bank issue Cards and whore Client authorizes to use the Accounts are not identified on a prohibited government
sanctions list, or otherwise subject to a sanctions program applicable to Client. Bank reserves the right to terminate the
Agreement and/or cancel any of the Accounts at any time, if Bank determines that an Account d to a person
OFFICIAL RECORD
CITY SECRETARY
CTS WORTH,T" Page 7 of 11
residing in a sanctioned jurisdiction or where the Cardholder's name, or the name of an individual authorized to use an
Account,appears on a government sanctions list applicable to Client.
7. Amendment. Section 4.B of the Agreement is hereby deleted in its entirety and re pi aced with the following:
Client shall immediately notify Bank by phone of any Card or Account that Client knows or suspects has been lost,stolen,
misappropriated,improperly used or compromised.
1. Liability for Fraudulent Transactions Following Notification. Notwithstanding anything to the contrary contained
herein, Client shall not be liable for any Fraudulent Transactions occurring on a Card or Account after the effective
time of such notification to Bank of such Fraudulent Transaction.
ii. Liability for Fraudulent Transactions Prior to Notification.Subject to the terms and conditions contained in subsection
(iii)below,Client shall not be liable for Fraudulent Transactions occurring on a Card or Account prior to the effective
time of such notification to Bank of such Fraudulent Transactions.
iii. Bank reserves the right to hold Client liable for Fraudulent Transactions occurring prior to the effective time of such
notification to Bank of such Fraudulent Transactions should Bank determine that subsequent to implementation of
Client's Program and at the time that the Fraudulent Transaction occurred, Client failed to operate its Program in
accordance with Bank's fraud reduction best guidelines as set forth below:
a. Client to block high risk MCC's identified by Bank and presented to Client;
b. Client to maintain reasonable security precautions and controls regarding the dissemination,use and storage of
Card and Transaction data;and
c. Client to comply with all other guidelines as Bank may reasonably require from time to time.
If Client fails to comply with its obligations described in this subsection (iii), and Bank determines Ciient to be liable for
Fraudulent Transactions occurring prior to the effective time of such notification to Bank of such Fraudulent Transactions,
Bank will either: (1) invoice Client for the amount of such Fraudulent Transaction minus any amounts collected, or (2)
deduct the amount of such Fraudulent Transaction amount from Client's rebate.
8. Amendment. Section 10 of the Agreement is hereby deleted in its entirety and replaced with the following:
This Agreement shall have an initial term of five (5) years from the Third Amendment Effective date unless otherwise
terminated pursuant to the provisions of Section 11 of this Agreement. Thereafter, this Agreement may be successively
renewed for up to two,two-year renewal periods at the Client's sole discretion.
9. Amendment. The first sentence of the "Piggyback Provision" as added to the Agreement by the First Amendment to
Commercial Card Agreement dated November 9,2010 is hereby deleted and replaced with the fallowing:
Pursuant to the Texas Interlocal Cooperation Act,Chapter 791,Texas Government Code(the"Act"),the use of this Agreement
may be extended to other local governments and state agencies as defined in the Act.
10, Exhibit A. Exhibit A to Agreement is hereby deleted in its entirety and replaced with a new Exhibit A in the form attached
hereto.
11. Continued Effect. Except to the extent amended hereby, all terms, provisions and conditions of the Agreement, as it may
have been amended from time to time,shall continue in full force and effect and the Agreement shall remain enforceable and
binding in accordance with its terms.
12, Counterparts. This Amendment may be executed in any number of counterparts, all of which when taken together shall
constitute one and the same document, and each party hereto may execute this Amendment by signing any of such
counterparts.
REMAINDER OF PAGE INTENTIONALLY BLANK
SIGNATURES ON FOLLOWING PAGE
Page 2 of 11
IN WITNESS WHEREOF, the Bank and the Client have caused this Amendment to be executed by their respective authorized
officers as of the effective date written above.
BANK CLIENT
By: By:
Name: V n vJ �ft Z cy f +^� Name: 5 sen Alanis
Title: Title: Assistant City Man a �oftr1jr �
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By. ❑
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Name: Mary Kayser �� °oo o
Title: City Secretary 4 4000a
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APPROVED A5 To F R D LEGALITYn�`��'
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By:
Nalenis C.McElroy
Title. Assistant City Attorney
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contract
OFFICIAL RECORD
CITY SECRETARY
FT WORTH, TX page 3 of 11
EXHIBIT A
INCENTIVES & FEES
DEFINITIONS
"Association"means either MasterCard or Visa.
"Average File Turn" means the number of days between the transaction posting date or day the Bank funds the charge and the
day payment for that Transaction is posted,averaged over the rebate calculation period. File Turn is calculated as the daily average
outstanding balance divided by Gross Combined Charge Volume multiplied by the number of days in the period.
"Charge Volume" means total U.S.dollar charges made on a Bank Card, net of returns,and excluding Large Ticket Transactions,
cash advances, convenience check amounts, Fraudulent Transactions and any transactions that do not qualify for interchange
under applicable Association rules.
"Consortium Combined Charge Volume"means the total sum of Charge Volume and Single Use Charge Volume for all members
of the Southern States Consortium.
"Contract Year"means a 12-month period beginning on September 1 of each year or any anniversary of such date.
"Credit Losses" means all amounts due to Bank in connection with any Account that Bank has written off as uncollectible,
excluding amounts due in respect of Fraudulent Transactions.
"Fraudulent Transactions"means transactions made on a Card or Account by a person,other than the Client or Cardholder,who
does not have actual, implied, or apparent authority for such use, and which the Cardholder or Client receives no direct or indirect
benefit.
"Grace Days"means the number of calendar days following the end of a billing cycle to the date the payment is due.
"Gross Combined Charge Volume"means Consortium Combined Charge Volume plus Large Ticket Transaction Volume.
"Large Ticket Transaction"means a transaction that the applicable Association has determined is eligible for a Large Ticket Rate
"Large Ticket Transaction Volume" means total U.S.dollar Large Ticket Transactions made on a Bank Card or Account, net of
returns and excluding cash advances, convenience check amounts, Fraudulent Transactions and any transactions that do not
qualify for interchange under applicable Association rules.
"Participant"means the Client or a public entity,Not-For-Profit organization or private university from the state of Texas,Arkansas,
Louisiana, Mississippi,Alabama,Georgia, North Carolina,South Carolina,or Florida that have been approved by the Client and the
Bank to participate under the Commercial Card Purchasing and Single Use Account programs provided to Client under this
Agreement and which have executed an agreement in the form as attached hereto as'Exhibit C'(the"Participation Agreement)or in
such other form as provided by the Bank from time to time.
"Settlement Terms" means the combination of the number of calendar days in a billing cycle and the Grace Days. Settlement
Terms are expressed as X&Y.where X is the number of calendar days in the billing cycle and Y is the Grace Days.
"Single Use Account"means a Card-less Account used in connection with a single, unique transaction.
"Single Use Charge Volume" means total U.S.dollar charges made on a Single Use Account used in connection with the Single
Use System, net of returns,and excluding Large Ticket Transactions,cash advances, Fraudulent Transactions and any transactions
that do not qualify for interchange under applicable Association rules.
"Southern States Consortium"means the City of Fort Worth,Texas and public entities, Not-For-Profit organizations and private
universities from the states of Texas, Arkansas, Louisiana, Mississippi, Alabama, Georgia, North Carolina, South Carolina, and
Florida that have been approved by the Bank.
Page 4 of 11
BONUSES
City of Fort Worth Bonus
In addition to any Rebate payable hereunder, Bank will pay the City of Fort Worth a one-time bonus of$300,000 within 94 days of
the execution of this Amendment. Should the Southern States Consortium not achieve $300,000,000 in Consortium Combined
Charge Volume during each year of the initial five (5) year term of this Amendment (for a combined total of $1,500,000,000 in
Consortium Combined Charge Volume over the initial five(5)year term),the Client shall repay to Bank the bonus on a volume pro-
rata basis. Furthermore, should the Agreement be terminated prior to the five (5) year anniversary of the execution of the
Amendment, the bonus must be returned to Bank on a term pro-rata basis. If there is both a volume shortfall and an early
termination repayment,the larger of the two calculations shall apply.
Illustrative examples of bonus repayment
• Should there be a shortfall on the committed Consortium Combined Charge volume over the initial five(5)year term,or the
annual equivalent during a Contract Year,a volume pro-rated repayment of the bonus would occur as below:
o If the annual Consortium Combined Charge Volume is$240 million during a Contract Year,the bonus
repayment will be as below:
• 20%shortfall($300million-$60million)*annual portion of the bonus($300,00015)_$12,000
repayment to Bank
o If over the initial five(5)year term,the Consortium Combined Charge Volume is$1,350 million,the bonus
repayment will be as below:
• 10%shortfall($1,500 million-$1,350 million)*the bonus{$300,000}_$30,000
• Net out any prior repayments{$12,000}resulting in a net repayment of($30,000_$12,000)_$18,000
• Should prior repayments exceed the amount owed at the end of the initial five(5)year term,the
benefit will be added back to the Client's rebate:
• In this example,if the City of Fort Worth only owed$10,000 at the end of the initial five(5)
year term,$2,000{$10,000 owed,less$12,000 already paid)will be added to the City of
Fort Worth's rebate
• If the Consortium Combined Charge Volume is$1,500 million at the end of the initial five
(5)year term,the$12,000 repayment from above would be added to the City of Fort
Worth's rebate
o All adjustments will be calculated at the time of and included with the annual volume rebate.
REBATES
Volume Rebate
Bank will pay each Participant a rebate based on the annual Consortium Combined Charge Volume achieved by the Southern
States Consortium according to the following schedule. The rebate will be calculated as the Rebate Rate times the annual
Consortium Combined Charge Volume,subject to the rebate adjustments below.
Individual Participant Combined Charge Volume
Annual $500,000 to $1,000,000 to $8,000,000
Consortium $999,999 $7,999,999 Or more
Combined Rebate Rate Rebate Rate Rebate Rate
Charge Volume (%� at 29-day (%)at 29-stay (%)at 29-day
Average File Average File Average File
Turn Turn Turn
$25,000,000 0.80% 1.50% 1.53%
$75,000,000 0.85% 1.55% 1.58%
$150,000,000 0.9 % 1.57% 1.60%
$200,000,000 0.95% 1.59% 1.62%
$300,400,000 1.00% 1.60% 1.63%
Page 5 of 11
$400,000,000 1.02% 1.60% 1.64%
$500,000,000 1.02% 1.61% 1.66%
$600,000,000 1.02% 1.61% 1.68%
$800,000,000 1.02% 1.62% 1.69%
$1,000,000,000 1.02% 1,62% 1.70%
REBATE ADJUSTMENTS
Single Use Charge Volume Adiustments
Should a Participant's annual Single Use Charge Volume be less than$1,000,000 in a Contract Year, such Participant will not earn
a rebate on annual Single Use Charge Volume for that Contract Year.
Should a Participant's annual Single Use Charge Volume be greater than or equal to $1,000,000 but less than $10,000,040 in a
Contract Year,the rebate rate shall be 1.24%for the annual Single Use Charge Volume for that Contract Year.
Should a Participant's annual Single Use Charge Volume be greater than $10,000,000 in a Contract Year,the rebate rate for such
annual Single Use Charge Volume shall be determined by the Volume Rebate grid above.
Averam File Turn Adjustments
Average File Turn Escalator
The Bank will pay each Participant an additional rebate based on its Average File Turn for the year. An Average File
Turn escalator of 0.0075%will be earned for each full day Average File Turn is below 29 days.
As an example, the maximum Average File Turn for a program with 30 & 14 Settlement Terms is 29 days, if such
program has an average daily outstanding balance for the period of$700,000 and an annual Gross Combined Charge
Volume for the same period of$12,000,000,then the File turn is 21 days($700,000 divided by$12,000,000 multiplied by
365). The File Turn Escalator will be 6 bps(29 less 21 day File Turn multiplied by 0.0075%)0
Average File Turn Detractor
A rebate detractor of 0.01% will be applied for each full day of Average File Turn above 29 days up to 45 days. For
example,if a Participant achieves an Average File Turn of 35 days,a detractor of 6 basis points(0.06%)will be applied to
the rebate calculation for that Participant.
Large Ticket Rebate
Bank will pay the Participant an annual rebate based on its annual Large Ticket Transaction Volume when such Participant's annual
Volume Rebate threshold requirements are achieved. Bank will pay the Participant an annual rebate of 0.20%on its annual Large
Ticket Transaction Volume.
Interchange Rate Adjustment
In the event of a reduction in interchange rates by the Associations,the Bank reserves the right to ratably adjust the rebate rates
accordingly.
Participant Reporting system option
For Participants with annual spend of under$10 million,the srnartdata reporting solution will be implemented.
Participants with annual spend of$10 million or above can select the Bank's PaymentNet reporting platform or smartdata.
General Rebate Terms
Rebates will be calculated annually in arrears. Rebate amounts are subject to reduction by all Credit Losses. If Credit Losses
exceed the rebate earned for any Contract Year, Bank will invoice the Participant for the amount in excess of the rebate, which
amount shall be payable within 30 days. Upon termination of the Program,the Credit Losses for the six-month period immediately
preceding the termination will be deemed to be equal to the Credit Losses for the prior six-month period. If the Participant is
participating in more than one program, Bank reserves the right to offset any losses from one program against any rebate earned
under any other program.
Rebate payments will be made within 90 days after the end of the Contract Year via wire transfer to an account designated by the
Participant.
To qualify for any rebate payment,all of the following conditions apply.
a. Settlement of any ventrally billed account{s}must be by automatic debit or by Participant initiated AC or wire.
Page 6 of 11
E�. Payments must be received by Sank in accordance with the Settlement Terms, subject to the Average File Turn
Adjustments. Delinquent payments shall be subject to a Past Due Fees as specified below. Settlement Terms are 30&
14 for purchasing card,travel card,and Single Use Programs.
c. The Participant must maintain a satisfactory Bank credit risk rating(investment grade equivalent).
cl. The Participant is not in default under the Agreement.
e. Account(s)must be current at the time of rebate calculation and payment.
Page 7 or 11
Pees Schedule -for Programs using the HP processor (PaymentNet or smartdata solution)
PROGRAM FEES
Annual card fee $0.00
Cash advance fee 2.5%($2.50 minimum)
Convenience check fee 2%of check amount($1.501check minimum)
Rejected convenience check $0.00 per occurrence
Convenience check stop payment $0.00
Standard card replacement $0.00 per card
Card reinstatement $0.00
Emergency(rush)card replacement $25 per card if effected through Bank. If effected through the
Association, Participant shall pay any fees charged by the Association.
Return check(payment) $15 per return
ACH return $20 per return
Document retrieval dispute-related:$0.00
Non-dispute-related:3 copy requests free,then$5 per copy request
Duplicate statement $5 per statement
Currency conversion fee 1%surcharge{Association pass-through}
Dormant credit balance fee $0.00
Over-limit fee $0.00
Miscellaneous fees Pass-through charges for other specialized services(case-by-case fee)
PAST-DUE FEES
Late fee Central Bill-1%of unpaid balance at cycle;charged on cycle date
Finance charge None
Delinquency fee 2.5%of the full amount past due(30-&60-day+)at cycle and each
cycle thereafter;charged on cycle date.
CARD DESIGN
Basic plastic $0.00
Participant logo added to Basic plastic $500 per logo for any newly designed logo.No fee for existing logos on
new plastics.
Customized plastic At cost(pass-through), based on complexity of design,subject to a
1,000 card minimum
TRAINING AND CONSULTING
Training at Bank's site $0.00(participant T&E not included)
Training at Participant's site(s) $0.00 for first session;additional sessions @$1,5501day
TECHNOLOGY SERVICES
PaymentNet setup fee Waived
EDI setupltransmission Pass-through on all setup and development costs
Page 8 aF 11
Paper statements $0.00
Electronic payment fee $0.00
Custom reporting/mapper programming/post- $250 per hour($1,000 minimum)
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Should the Participant request services not in this schedule, Participant agrees to pay the fees associated with such services.
Pape 9 or 11
Fees Schedule-for Programs using the ISYS processor(PaymentNet or smartdata solution)
PROGRAM FEES
Annual card fee $0.00
Cash advance fee 2.0%($3.00 minimum)
Convenience check fee 2%of check amount($1.501check minimum)
Rejected convenience check $0.00
Convenience check stop payment $0.00
Standard card replacement $0.00 per card
Card reinstatement $0.00
Emergency(rush)card replacement $25 per card if effected through Bank.If effected through the
Association,Participant shall pay any fees charged by the Association.
Return check(payment) $15 per return
ACH return $0.00
Document retrieval Dispute-related:$0.00
Non-dispute-related:$8 per document
Duplicate statement $8 per statement
Currency conversion fee 1%surcharge(Association pass through)
Dormant credit balance fee $0.00
Over-limit fee $0.00
Miscellaneous fees None
PAST-DUE FEES
Late fee NOTE:Participant can be billed both a fate fee and a finance charge.
Central Bill:None
Finance charge Central Bill: Prime+2%is applied to the average daily,which is
calculated as follows:(past due balance+any new spend)/number of
days in cycle.Will be charged on the cycle date.
Travel Central Bill:Prime+2%is applied to the average daily,which is
calculated as follows:(past due balance+any new spend)1 number of
days in cycle.Will be charged on the cycle date.
Delinquency fee Central Bill:None
CARD DESIGN
Basic plastic $0.00
Participant logo plastic $500 per logo for any newly designed logo. No fee for existing logos on
new plastics.
Customized plastic At cost(pass-through),based on complexity of design,subject to a
1,000 card minimum
Page 10 of 11
TRAINING AND CONSULTING
Training at Bank's site $0.00(Participant T&E not included)
Training at Participant's site(s) $1,5501day
TECHNOLOGY SERVICES
Paper statements $0.00
Electronic payment fee $0.00
Custom reportinglmapper programming/post- SDOL custom mapper: priced by MasterCard;pass-through charge
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OPTIONAL PROGRAMITECHNOLOGY SERVICES
Smarfdata setup fee $0.00
SDOL monthly maintenance fee $50 per program per month WAIVED for the Contract Year in which the
Participant reaches$500,ODO in annual spend.
SDOL real time $0.00
REWARDS PROGRAM
Should the Participant request servioes not in this schedule,the Participant agrees to pay the fees associated with such services
Page 11 of 11
M&C- Council Agenda Page I of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 81712012
DATE: Tuesday, August 07, 2012 REFERENCE NO.: P-11417
LOG NAME: 13P12-0106 PCARD MJ
SUBJECT:
Award of Contract to JPMorgan Chase Bank, N.A. for Purchasing Card Services for Citywide Use and
Authorize Amendment to City Secretary Contract 35775 to Extend Period of Performance and Increase
Rebate Percentages (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Award the contract for Request for Proposals 12-0106 to JPMorgan Chase Bank, N.A. to provide
purchasing card services for the City of Fort Worth; and
2. Authorize the amendment of City Secretary Contract 35775--Commercial Card Agreement to provide
for an additional five-year term with two, two-year renewal options and to increase rebate percentages.
DISCUSSION:
The purpose of this Mayor and Council Communication is to award a contract under Request for
Proposals (RFP) 12-0106 to JPMorgan Chase Bank, N.A. (Chase Bank),which is the staff recommended
vendor, and to authorize amendment to Chase Bank's existing Agreement with the City (City Secretary
Contract 35775)to extend the period of performance for an additional five years and provide two
additional, two-year renewal options and to increase the rebate percentages.
City departments use the City's purchasing card (P-card) program to make efficient small dollar purchases
that have a maximum transaction amount of$3,000.00, including payments for purchases under some of
the City's annual Agreements. In total, the City spends approximately$11,000,000.00 annually with
vendors through the P-card program.
The program's primary objectives are to achieve administrative savings associated with an online
electronic small-purchase billing/payment/management system, to consolidate and enhance data
collection and reporting, and to realize volume-based rebates. The City processes approximately 27,000
transactions annually through this program. Because of the all electronic nature of the system, P-card
transactions are less labor intensive and therefore less expensive to process than payments by check.
The purchasing card program is checked for compliance at the user department levels through a
monitoring and reporting process during each billing cycle. The Purchasing Division reviews compliance
at a City-wide level. Audits can also be performed by the Internal Audit Department, and transactions are
included in the annual audit of expenditures completed by the external auditors.
The Purchasing Division issued a Request for Proposals{RFP}on April 4, 2012, soliciting qualified firms
to provide services related to the installation and operation of purchasing card services. The RFP
included the City's requirements for its P-card program and evaluation factors such as system
requirements, technical qualifications, organization qualifications, financial strength and rebate structure.
The City's evaluation panel included representatives from the Financial Systems and Treasury Divisions.
The RFP also included requirements that other public entities be allowed to access the contract via a
cooperative purchasing Agreement with the City. In the past two years, the City and the current P-card
http://apps.cfwnet.orglecouncil/printmc.asp?id=17192&print=true&DoeType=Print 8/30/2012
M&C - Council Agenda Page 2 of 2
provider, Chase Bank, have developed a consortium of over 190 entities that cooperatively use the City's
P-card contract. The City receives a graduated rebate from Chase Bank based on the amounts the City
and the consortium spend through the program. This consortium spends approximately $300,000,000.00
through the program, which enhances the City's rebate by approximately 28 percent or$38,000.00
annually, over the amount the City would generate on its own.
Chase Bank submitted the only proposal in response to the RFP. The Purchasing Division staff contacted
other potential providers that did not respond to the RFP. These firms indicated they did not want to
manage the cooperative program. Chase Bank, the incumbent provider, has performed satisfactorily
under the current Agreement and is qualified for award of a new Agreement.
RFP ADVERTISEMENT-This RFP was advertised every Wednesday in the Fort Worth Star-Telegram
from April 4, 2012 through May 2, 2012. Twenty-six vendors were solicited from the purchasing vendor
database, three providers attended a pre-proposal conference, and one proposal was received.
PRICE ANALYSIS -The program will be administered at no cost to the City. The rebate is a variable
percentage based on total annual dollars spent through the program. The rebate percentages being
offered are approximately three percent higher than under the current Agreement.
AMENDED AGREEMENT TERM - Upon City Council's approval, the term for the amended Agreement will
begin September 1, 2012 and expire August 31, 2017.
RENEWAL OPTIONS -This amended Agreement may be renewed for up to two additional, two-year
periods at the City's option at the City's sole discretion. This action does not require specific City Council
approval.
MIWBE -A waiver of the goal for MIWBE subcontracting requirements was requested by the Purchasing
Division and approved by the MIWBE Office because the purchase of goods or services is from sources
where subcontracting or supplier opportunities are negligible.
FISCAL INFORMATION I CERTIFICATION:
The Financial Management Services Director certifies that the Financial Management Services
Department is responsible for collection and deposit of funds due to the City.
BQNl12-01061MJ
FUND CENTERS:
TO FundlAccauntlCenters FROM Fund/AccountlCenters
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Lena Ellis (8517)
Marilyn Jackson (2059)
Additional Information Contact: Jack Dale (8357)
ATTACHMENTS
1. MBE Waiver.pdf (CFW Internal)
http://apps.cfwnet.org/ecouncif/PrintmG.asp?id=17192&print=true&DocType=Print 8/30/2012