FORMAL INVITATION FOR BEST VALUE BID (BVB) THREE YEAR CONTRACT FOR SECURITY SERVICES ADDENDUM 4

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1 SAN ANTONIO WATER SYSTEM PURCHASING DEPARTMENT Issued By: Clifford Gorman Date Issued: April 28, 2016 BID NO.: FORMAL INVITATION FOR BEST VALUE BID (BVB) THREE YEAR CONTRACT FOR SECURITY SERVICES ADDENDUM 4 Sealed bids, one (1) Original and seven (7) copies, addressed to the Purchasing Director, San Antonio Water System, 2800 US Hwy 281 North, Administration Bldg., 5 th Floor, San Antonio, TX will be received until 3:00 p.m., May 3, 2016 and then publicly opened and read aloud for furnishing materials or services as described herein below, The San Antonio Water System Purchasing Department is willing to assist any bidder(s) in the interpretation of bid provisions or explanation of how bid forms are to be completed. Assistance may be received by visiting the Purchasing Office in the SAWS Main Office, 2800 US Hwy 281 North, San Antonio, TX 78212, or by calling (210) (Contractor s Insurance Requirements Attached) (Performance Bond Required) (Payment Bond Required) This invitation includes the following: Invitation for Best Value Bids Terms and Conditions of Invitation for Bids Specifications and General Requirements Price Schedule The undersigned, by his/her signature, represents that he/she is authorized to bind the Bidder to fully comply with the Specifications and General Requirements for the amount(s) shown on the accompanying bid sheet(s). By signing below, Bidder has read the entire document and agreed to the terms therein. Signer s Name: Firm Name: (Please Print or Type) Address: Signature of Person Authorized to Sign Bid City, State, Zip Code: Address: Telephone No.: Fax No.: Please complete the following: Prompt Payment Discount: % days. (If no discount is offered, Net 30 will apply.) Please check the following blanks which apply to your company: Ownership of firm (51% or more): Non-minority Hispanic African-American Other Minority (specify) Female Owned Handicapped Owned Small Business (less than $1 million annual receipts or 100 employees) Indicate Status: Partnership Corporation Sole Proprietorship Other (specify) Tax Identification Number: To report suspected ethics violations impacting the San Antonio Water System, please call Page 1 of 9

2 This addendum is being issued to provide clarifications, corrections and to answer questions received during the mandatory pre-bid meetings as well as questions received via . All other terms conditions and specifications remain unchanged. This addendum should be returned with your bid submittal. Page 17 Minimum Requirements: Item 1 and 2. Currently reads: This documentation must be included behind TAB 3. Is being revised to read: This documentation must be included behind TAB 4. Page Non-Performance Currently reads: Upon the occurrence of any of the following acts of non-performance listed below, SAWS will adjust the contractor's billing downward to reflect the reduced value of billed services as follows: paragraphs deduct $ per incident; paragraph deduct $ per incident; paragraph deduct $ per incident. Determination of the validity of the infraction shall be determined by SAWS Security, based upon observation/information provided by others or observed personally by security staff or made available by others or resulting from an audit. The contractor shall be provided written notice that SAWS is initiating the deductions from the normal invoice. Is being revised to read: Upon the occurrence of any of the following acts of non-performance listed below, SAWS will adjust the contractor's billing downward to reflect the reduced value of billed services as follows: paragraphs deduct $ per incident; paragraph deduct $ per incident; paragraph deduct $ per incident. Determination of the validity of the infraction shall be determined by SAWS Security, based upon observation/information provided by others or observed personally by security staff or made available by others or resulting from an audit. The contractor shall be provided written notice that SAWS is initiating the deductions from the normal invoice. Holiday Schedule Below is a list of approved SAWS holiday schedule for Note: SAWS holiday schedule changes annually. Awarded contractor will be advised of annual holiday schedule once it has been approved. New Year's Day - Friday, Jan. 1 Martin Luther King Jr. Day - Monday, Jan. 18 Fiesta San Jacinto - Friday, April 22 Memorial Day - Monday, May 30 Independence Day - Monday, July 4 Labor Day - Monday, Sept. 5 Thanksgiving Day - Thursday, Nov. 24 Day after Thanksgiving - Friday, Nov. 25 Christmas Eve (observed) - Monday, Dec. 26 Christmas Day (observed) - Tuesday, Dec. 27 Christmas Holiday - Wednesday, Dec. 28 New Year's Eve (observed) - Thursday, Dec. 29 New Year s Day (observed) - Friday, Dec. 30 Bid , Three Year Contract for Security Services, Addendum Page 2 of 9

3 Questions received and responses to questions. 1. Who is the current incumbent? A. U.S. Security Associates 2. When were they awarded the contract? A. August 3, Estimated usage (number of hours) of prior contract? A. Approximately 80,000 hours a year. 4. Estimated number of hours for this contract? A. It s in the Best Value Bid. 5. What is the current bill rate? A. The current bill rate is irrelevant, as we have increased the required guards minimum pay rate. 6. What was the previous bill rate? A. The current bill rate is irrelevant, as we have increased the required guards minimum pay rate. 7. What type of vehicle were used for the last contract? What type of vehicle are required for this contract? A. Jeep Compass, Ford Ranger. Any type of vehicle that is street legal and in good working condition. 8. How often/how many times have you assessed liquidated damages, if applicable? A. Performance on current contract has no bearing on new contractors response to this Best Value Bid. Bid outlines when liquidated damages will be accessed. 9. What was the estimated budget for the previous contract? A. $1.2 Million 10. Section 17.6 Contractor Furnished Items, states that the contractor will furnish All vehicles Bicycles, UTVs / Golf Carts, but it does not give us (the contractor) any specifics like: number of vehicles needed, make / model of the vehicles, if there are any mileage limitations the same (where appropriate) with bicycles and golf carts. Also, is there any mandatory equipment required in the vehicles? Are there any requirements for what is deemed to be Clearly Marked? The vehicles have to be able to perform the job reliably, there are no mileage restrictions. Clearly marked means company name Acme Security should be clearly marked on the vehicle. The hours listed as mobile patrol all require a street legal vehicle. At this time there are no other types of vehicles required for the contract other than motor vehicles. However, in the future we may determine or you may suggest that the addition of bicycle and or golf cart patrols would better provide for Page 3 of 9

4 securing our facilities so we have included pricing for that option. 11. On page 12 of 68, In addition to those hours detailed above, contractors may be required to schedule coverage for vacations, holidays, unscheduled absences or other unplanned occurrences, are we allowed to charge them at time and one-half for these changes to the normal scheduled hours? A. No, the selected security vendor must have the appropriate level staffing to cover all post as scheduled. The selected vendor must provide coverage for any unplanned absences, no show no calls, sick or vacation of their officers at the normal billing rate. 12. Can you explain "Fully Loaded Price" Does that mean an aggregated price that includes Overtime and Holiday rates? A. No, it s your bill rate. If you are paying $14.00 per hour for the guard, it includes all other costs such as profit, overhead, general and administrative expenses, training, insurance, holidays and any other appropriate expense. 13. Holiday Rates: I did not see where you want us to list a price for Holiday rates. A. Your bill rate fully loaded price covers the 11 or so holidays. A schedule will be shared with you of all SAWS holidays. 14. Communications: What do you require as a means of communication for the Guard Force? Radio or Cell Phones. A. We issues radios for SAWS communication. There is an expectation that your guards will also have a cell phone for backup communication and communication with your operations. 15. Will post training for the new contractor be alongside the incumbent? A. Yes, for a short time. 16. If the current contractor and the new contractor are working side by side for training will the incumbent guard be armed and the new contract guard unarmed? A. Yes 17. When does SAWS require drug testing of new guards? A. Before they begin working on the SAWS contract. Documentation must be retained in a file for SAWS to review. 18. What caliber firearm does SAWS require? A. Prefer 9mm and 38 special. 19. What type of ammunition does SAWS require? A. Prefer 9mm and 38 special. Page 4 of 9

5 20. How many patrol vehicles will be required? A. There will need to be four (4) vehicles available at all times. 21. Would the same points for the Small Business Minority Owned portion be allocated if we used a locally owned disabled, veteran security company as our subcontractor? A. We currently do not recognize veteran-owned or disabled veteran-owned certification. We also do not award points for a firm s locality. However, if that firm is (also) certified as a Small Business Enterprise, a Minority Business Enterprise, a Woman-owned Business Enterprise, or a Historically Underutilized Business (HUB), we will recognize any of those certifications. We recognize certification from four certifying agencies: 1. South Central Texas Regional Certification Agency 2. State of Texas Historically Underutilized Business (HUB) Program 3. Federal designation through the System for Award Management ( or the Small Business Administration 4. Southwest Minority Supplier Development Council 22. Page 14 of the RFP states, All pricing shall be enclosed in a separate sealed envelope, marked PRICING. Vendor must submit Pricing on Pricing Schedule provided in this best value bid. Page 34 states, PRICING SCHEDULE: Complete and submit Attachment D, Pricing Schedule. Place as Tab 7. Page 54 states, Do we place pricing in a separate envelope, or as Tab 7 (between Tab 6, Prior Experience/References and Tab 8, SMWB Program Compliance)? A. Pricing is to be completed on the Pricing Schedule and shall submitted in a separate sealed envelope marked pricing. 23. Page 17 of the RFP states, Bidders must provide a letter with bid from Bonding Company stating that in the event of award, bidder will be able to provide the requested Performance [and Payment] Bond. This documentation must be included behind TAB 3. Page 33 states, Bidders will provide letters from the Bonding Company stating that in the event of award, bidder will be able to provide the required Performance and Payment Bonds. Place as Tab 4. Should we place the letters in Tab 3, along with the W-9 form, or in Tab 4, between the W-9 form and Tab 5, Policies, Procedures, Training, etc? A. Letters from the bonding company should be placed behind Tab Page 32 of the RFP states, Bidder must complete, sign and submit the entire bid document, as well as, any Addendum. Does this refer to the 68-page PDF document provided, or just the fillable forms provided in Page 5 of 9

6 Attachment 3? If this refers to the entire document, may we have access to an editable version of the complete document so that we can add response pages to the PDF for ease of printing? A. The entire bid document includes the 68 page PDF document as well as all fillable forms and the scope of work that was included as a Word document. Respondents must address each of the items included as the scope of work on the word document. Additional response pages may be included here as well as the appropriate Tab that the information is relevant. 25. Can you verify if the officers used for the emergency coverage will have to meet the same background and training requirements as the assigned officers? A. Yes, they must meet the requirements of the post that is being requested and must have been trained on that post. 26. Also for reference, how often has SAWS needed emergency service coverage in the past? A. Since January of this year we have requested emergency service twenty five times. 27. Who is the current subcontractor? A. Blue Armor Security Services Inc. 28. How long has the current security provider provided services to SAWS? A. Since March of How long has the current subcontractor SMWB provided service to SAWS? A. January 2009, Blue Armor was the SMWB for CSS USA when they were awarded the contact in When US Security Associates purchased CSS USA they kept Blue Armor as the SMWB. When US Security Associates was awarded the contract outright in 2011 they kept Blue Armor for their SMWB. Blue Armor has served both companies and SAWS well as their respective SMWBs 30. Is the current subcontractor SMWB in good standing with SAWS? A. Yes. 31. How many hours per week does the current subcontractor cover (percentage of total contract)? A. The subcontractor provides approximately 19-20% of the required coverage. 32. Is there a vetting process for subcontractors under this agreement? If so, please explain. A. We expect subcontractors to meet the same requirements as the contractor. It will be the prime contractor s responsibility to vet any and all of their potential subcontractors. Prime contractor must present potential subcontractors to SAWS for approval before allowing those subcontractors to perform any services for SAWS. 33. Are SMWB s required to meet the same bid requirements as the prime contractor (Prior Experience, Financial / Operational Stability etc.)? Page 6 of 9

7 A. No, only the prime contractor has to meet those requirements. 34. Does SAWS have a preferred SMWB? A. No. 35. Are qualifying bids required to identify the name of the SMWB with bid submission? A. Yes. 36. Has the current security provider received liquidated damages penalties over the past 2 years? If so, what was the total dollar amount per year? A. Performance on current contract has no bearing on new contractors response to this Best Value Bid. Bid outlines when liquidated damages will be accessed. 37. Will there be annual limits on the total Liquidated Damage penalties assessed under the new contract? If so, what are the limits? A. No, SAWS intent is to build a relationship with the contactor and will give repeated warnings to the contractor for violations of the contract before fining. 38. Can you further explain the process for assessing Liquidated Damages? A. If the contractor is found violating a rule from the contract they may be warned or fined for the violation. After warnings have been issued and the violation continues fines may be assessed. 39. Will there be a statute of limitations on liquidated damages? A. No, there will not be a statute of limitations on assessing liquidated damages. 40. How many times has SAWS suspended the work, for what reason and for how long? A. SAWS has never suspended work by a security contractor. 41. Shall the 24 hours of on-the-job training be billable to SAWS in the hourly bill rate or as a direct passthrough cost? A. These costs need to be included in the calculation of your billing rate. 42. Shall the Specialized Annual training be billable to SAWS in the hourly bill rate or as a direct pass-through cost? A. These costs need to be included in the calculation of your billing rate. 43. Please clarify when will vendor be authorized to bill at an overtime rate for requested extra coverage? (The RFP states 12 hours or less notice, but in the pre-bid meeting it was stated 24 hours or less notice.) A. If SAWS does not give the contractor 24 hour notice of need the contractor may charge the higher bill rate until the next full shift takes over. Page 7 of 9

8 44. Please confirm the number of vehicles required. (It was stated that 5 will be required in the pre-bid meeting (4 used daily, 1 spare). A. The vehicles are used at different times, there may be only one patrol out during the day and four driving at night. The schedule and vehicle needs will be discussed with the awarded contractor. 45. What is the anticipated annual mileage for each vehicle? A. An average patrol can place miles a shift on a vehicle. 46. How many bicycles, UTVs/golf carts are currently provided? How many are expected for the new contract? A. None at this time. However we have two large campuses that could be better served with a bicycle patrol. 47. What type of uniform does SAWS prefer (Style, Type and Color)? A. We have a mix of uniforms depending on the post or situation. We have class a, class b, suits, BDUs and polos. The current contractor designed their uniform. We would rely on the awarded contractor to show us their uniform ideas. 48. What is the cost of the contractor badges and parking tags required for SAWS? What is the cost for replacement badges and parking tags? A. No cost, SAWS provides these to the awarded contractor s employees, if these items continued to be lost SAWS would probably ask that the offending officer be removed from the contract. 49. How many Full-Time Contract Security Officers are currently assigned to SAWS? A. There are currently forty nine (49) officers assigned to SAWS. 50. Of the Full-Time Contract Security Officers, how many have: a. Less than 2 years of service? b. Between 2-10 years of service? c. Greater than 10 years of service? A. Of the current full time contract security Officers there are twenty four (24) with less than two (2) years service, twenty four (24) with between two (2) and ten (10) years service and one (1) with greater than ten (10) years service. Keep in mind that SAWS will not approve some of the officers listed above for future service. 51. Please explain how SAWS will determine if a bidder has the financial resources to provide the services described in this bid? A. SAWS will perform an objective financial analysis of the Income Statement, Balance Sheet and Statement of Cash Flow provided by the respondent. Profit margin, Working Capital, Current Ratio and Free Cash Flow will be evaluated. 52. Are resumes ONLY required for supervisory personnel or for everyone? A. Resumes are required for supervisory personnel only. Page 8 of 9

9 53. Please clarify your criteria for Best Value Bid Submission Requirements. A. This information is included in the bid document beginning on page 32 of In review of the BID NO.: , Best Value Bid for Security Services, pages 9 & 10 of 14 of Addendum 3 references Groups 1-3 Facility Guard Services, Mobile Patrol and Additional Services As Requested. Regarding the tiered compensation on the pricing schedule of all positions, we are requesting clarity on the pricing or minimum pay rates of positions and tenure. For example, do the existing Officers that are retained at the contract "grand-father" their time, i.e., less than 2 years, 2-10 years, and more than 10 years SAWS Service (p. 30 of 68, RFP)? A. Yes, the years of service at SAWS of any of the current Security Officers that are retained by the new contractor are grand-fathered into the calculation for their minimum base pay rate. 55. Additionally, p. 12 of 14 of Addendum 3 request the use of sub-contracting Minority owned businesses. For clarification purposes, as a Minority owned business, are we required to complete this information with the intent or requirement to use other Minority owned businesses as well? A. All respondents must complete the Good Faith Effort Plan regardless of their SMWB status or even if they will be using SMWB subcontractors. It is not a requirement of this bid that a respondent be certified as an SMWB business or that they use SMWB subcontractors. However, proposals that approach and or meet the aspirational SMWB participation goals will receive up to 15 points towards the score for that criteria. Page 9 of 9

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