TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Service Wear Apparel Final Contract Option
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise option year two with Service Wear Apparel.
Staff Contact:
Salvador Llamas, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - High-Performing Workforce
Initiative - Financial Efficiency and Revenue Maximization
This service provides the District with high quality professional uniforms for its bus operators. It is essential to the level of service and the overall perception of the District that the uniforms be extremely high quality.
BUDGETARY/FISCAL IMPACT:
The total expected cost for Service Wear Apparel is estimated at $800,000 per year and has been included in the annual operating budget.
BACKGROUND/RATIONALE:
Since 2017, the District has been contracting uniform services with Service Wear Apparel to provide professional uniforms for bus operators, dispatchers, and supervisors. Service Wear Apparel demonstrated their ability to provide the full uniform services for the needs of the District during the pandemic where others could not and continues to provide this valuable resource for employees. To ensure Service Wear Apparel is delivering satisfactory service to District employees, staff works closely with the Uniform Committee to monitor ongoing performance and ensure Service Wear is responsive. Transportation staff and the Uniform Committee are satisfied with the level of service provided from Service Wear Apparel and desires to continue working with this vendor during the final option year.
On August 10, 2022, the Board approved a one-year agreement with two one-year options with Service Wear Apparel. On August 9, 2023, the Board authorized the General Manager to exercise the first one-year option with Service Wear Apparel, through October 31, 2024. The service agreement allows the District to exercise one more option. Staff recommends exercising option year two with Service Wear Apparel from November 1, 2024 to October 30, 2025.
ADVANTAGES/DISADVANTAGES:
The advantage of approving the final option year with Service Wear Apparel is the provision of high quality uniforms for employees at more reasonable prices. A new cooperative, known as “National IPA/TCN” provides a dedicated customer service team, along with added services such as hemming at no charge, and the ability to purchase specialty goods. Further, exercising the final option year will allow staff appropriate time to release a new solicitation during the third quarter of this fiscal year to secure a new contract.
ALTERNATIVES ANALYSIS:
Alternatively, the District could seek to amend the current contract with Service Wear Apparel; however, this would require a significant update of terms and conditions and potentially higher costs than the new agreement through the cooperative (National IPA/TCPN). The District could also issue a new solicitation; however, this alternative would require significant time for all stakeholders to be involved and provide input.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 16-057b - Award of a three-year cooperative contract with two (2) one-year options
Staff Report 16-057c - Award of a one-year single source contract
Staff Report 16-057d - Award of a one-year agreement with two (2) one-year options
Staff Report 16-057e- Award exercise of a one-year option
Board Policy 465 - Procurement Policy
ATTACHMENTS:
None
Prepared by:
Arlee Young, Assistant Director of Transportation
Approved/Reviewed by:
Salvador Llamas, Chief Operating Officer
Arlee Young, Assistant Director of Transportation
Fred Walls, Director of Procurement and Materials
Richard Oslund, Director of Management & Budget
Chris Andrichak, Chief Financial Officer
Shayna van Hoften, Interim General Counsel/Chief Legal Officer