HomeMy WebLinkAboutContract 35775-R1 �\
CSC No.
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� CITY OF FORT WORTH
CONTRACT RENEWAL NOTICE
CITY SECRETARY
�* CONTRACT NO. �'I`�h' IZ 1
02/28/2017
JPMorgan Chase Bank,N.A.
10 South Dearborn, 6a`Floor,IL1-0286
Chicago,Illinois 60603
Attn: Commercial Card Legal
Re: NOTICE OF CONTRACT RENEWAL
City Developer Agreement
Contract No. CSC No. 35775(the"Contract")
Renewal Term No. 1: September 1,2017 to August 31,2019
The above referenced Contract will expire on August 31, 2017. Pursuant to Section 10 of the Contract, as amended in the Third
Amendment dated August 30, 2012, contract renewals are at the sole option of the City. This letter is to inform you that the City is
exercising its right to renew CSC No. 35775-RI for an additional two year period, which will begin immediately upon the expiration
of the current term and will end on August 31, 2019.All other terms and conditions of CSC No. 35775-R1 remain unchanged. Please
return this signed acknowledgement letter, along with a copy of your current insurance certificate, to the address set forth
below,acknowledging receipt of the Notice of Contract Renewal.
Please log onto BuySpeed Online at htip://fortworthtexas.goy/purchasing to insure that your company information is correct and up-
to-date.
If you have any questions concerning this Contract Renewal Notice,please contact me at the telephone number listed below.
Sincerely yours,
Marilyn Jackson,Purchasing Supervisor cllFFICIAL RECUR®
FMS,Purchasing Division C0'[y SECRETARY
817-392-2059-Direct
817-392-8440-Fax FT.YYOMH,
I hereby acknowledge receipt of the Contract Renewal Notice for CSC No. 35775-RI for a two-year period ending on August 31,
2019.
By: Judy Mischel Date: 70 —7
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CITY OF FORT WORTH: * AT T:
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SU4 Al nis,Assistant City Manager Mary J. Kayser,City Secretary
Date: 31>--1 ( a-V /'7 M&C No. P-11417
CSC No.
RECOMMENDED BY: it tir
Aaron Bovos
Director
lof�Financial Management Services
Date:
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
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Name of Emp oy e
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M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
ITY COUNCILAGENDA FORT Til
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COUNCIL ACTION: Approved on 8/7/2012
DATE: 8/7/2012 REFERENCE NO.: P-11417 LOG NAME: 13P12-0106
PCARD MJ
CODE: P TYPE: NON-CONSENT PUBLIC NO
HEARING:
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 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
http://apps.cfwnet.org/council_packet/mc review.asp?ID=17192&councildate=8/7/2012 3/23/2017
M&C Review Page 2 of 2
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.
M/WBE -A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing
Division and approved by the M/WBE Office because the purchase of goods or services is from sources
where subcontracting or supplier opportunities are negligible.
FISCAL INFORMATION/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.
BQN\12-0106\MJ
TO Fund/Account/Centers FROM Fund/Account/Centers
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
http://apps.cfwnet.org/council_packet/Mc—review.asp?ID=l 7192&councildate=8/7/2012 3/23/2017