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INFORMAL REPORT TO CITY COUNCIL MEMBERS 74 1
To the Mayor and Members of the City Council
October 3, 1989
Subject: Survey of City Policies on Professional Services Contracting
•6 7.3
The staff has conducted a telephone survey among other Texas cities in an
attempt to determine if those cities have policies restricting the
procurement of professional services to those firms located within their
city. The cities responding to the survey and the results are set forth
below:
ARLINGTON - sends Requests for Proposals (RFP's) statewide, national or
international depending upon the service being sought.
AUSTIN - sends RFP's statewide in an effort to enhance competition and
achieve lower costs.
CORPUS CHRISTI - depends upon type of service sought and availability of
that service within the city limits. Emphasis is on staying within city
limits; but, at the discretion of the Purchasing Division RFP's may be sent
statewide to achieve an adequate response.
DALLAS - for architecture and engineering services preference is given to
"firms having primary offices located within the city limits of Dallas" and
"firms having an office in Dallas for at least five years and a permanent
staff located in Dallas capable of performing the required work". For
other professional service RFP's, Dallas generally goes statewide in an
effort to obtain the best professional services available.
HOUSTON - for major professional services the City of Houston goes either
statewide or national. For minor professional service contracts, such as
security or exterminating services, their RFP's are sent only to providers
within the city limits.
SAN ANTONIO - the only City surveyed which has established performance
standards used in the selection process for those competing for
professional services and discretionary contracts. Standards are designed
to increase contracting opportunities for "local" (having their place of
business located withing Bexar County) businesses. A copy of the San
Antonio program is attached.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS NO.742.1
&P T I^,
fop), To the Mayor and Members of the City Council
Survey of Policies on Professional Services Contracting
or Subject:
With the exception of the San Antonio program methodology used by the other
surveyed cities is similiar to that currently employed by the City of Fort
Worth's Purchasing Division in the procurement of materials and services
(other than architectural and engineering services which are not generally
procured through Purchasing). Requests for Bids are mailed only to vendors
within Fort Worth zip codes if in the opinion of the Purchasing Manager
adequate competion can be achieved within the local area. This practice
was implemented in 1987 and has worked successfully and without any
discernable increase in the cost of materials and services.
If additional information is required, it will be provided on request.
,/o& Zouglas Harman
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
ACTION PROGRAM
SUBJECT: PURCHASING AND CONTRACTING
RECOMMENDATION: Establish performance standards in the contract selection process
5 of 16 for those competing for professional services and discretionary contracts
who are"local"(having their place of business located within Bexar
County)so as to increase contracting opportunities for local businesses.
As goals are being achieved,these performance standards will be reviewed
and enhanced or rescinded.in addition,while the permissive state legislation
is not applicable to the City,in the next legislative session we will ask our
legislative delegation to include San Antonio in the law.
ASSIGNED
RESPONSIBILITY: Department of Economic and Employment Development
Public Works Department
City Attorneys Office
ACTION STEPS
AND DUE DATES: 1.Prepare City Council resolution declaring geographic boundaries for"local"
business enterprises.November,1988.
2.Limit discretionary contracts to bidders with offices within Bexar
County.If the scope of the project is too complex or large,require
joint ventures with local firms.If expertise is unavailable locally,
bidders will not be restricted to Bexar County,but will be encouraged
to joint venture with Bexar County firms.October,1988.
3.Insofar as legally permissible,performance standards Will be incorporated
in the selection process for discretionary contracts as follows:
(Maximum Preference = 10%)
5%local = 3%if business is located in Bexar County for
more than one year plus 2%if located in the corporate
limits of San Antonio for more than one year.
•5%designated ownership = 51%Minority Business
Enterprise(MBE),Woman Business Enterprise(Vv1BE)
or Handicapped Business Enterprise(BBE).
In cases of joint ventures between local and out-or-town firms,preference
for local firms will be.
4%joint venture = 2%if joint venture with local firm(1%County +
1%City limits)plus 2%if joint venture with MBE,WBE or HBE.
FISCAL
CONSIDERATIONS: If performance standards are established,then a higher cost in
contract awards could result due to reduced competition.
CURRENT STATUS: In progress.
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