HOUSTON, April 26, 2004 (PRIMEZONE) -- The Port of Houston Authority (PHA) commission received the quarterly report from the Small Business Development Program and approved several recommendations involving contract awards, bids and proposals, professional services and general administrative and operational matters during its meeting on Monday, April 26, 2004. Chairman Jim Edmonds presided over the public meeting.
Small Business Development Program
During the first quarter of 2004, PHA spent nearly $1.4 million (29 percent) of its contract dollars with small businesses, including $547,790 in second-tier sub-contracts. Small businesses received $845,005 (18 percent) of all formal and informal purchase orders issued by PHA during the quarter (a formal purchase order is over $25,000; an informal purchase order is under $25,000). Out of a total of 24 formal purchase orders, five (13 percent) were issued to small business prime contractors. Out of 396 informal purchase orders, 122 (27 percent) were issued to small businesses.
Meanwhile, 107 new vendors became registered participants in PHA's Small Business Development Program (SBDP), bringing the program's total to 696. Approval remains pending for another 245 vendors.
The SBDP is an initiative designed to help PHA contractors make good faith efforts to include small business participation in eligible contracts. Most contracts valued at over $25,000 are considered SBDP-eligible. The exceptions include contracts for sole-source items, federally funded contracts, contracts with other governmental entities and certain contracts that are otherwise prohibited by applicable law from inclusion in the SBDP. Professional service contracts are SBDP eligible contracts to the extent permitted by law and/or port commission policies.
The SBDP also provides small business technical assistance and outreach by encouraging the formation of joint ventures, alliances and mentoring relationships among small and large businesses and individuals; organizing training workshops and conferences led by advisors with special expertise in the requirements for successfully completing small business bids and proposals at the port; participating in community-based events for small, minority- and women-owned businesses; using targeted media to advertise notifications of bid and proposal opportunities at the port; requiring all prospective port contractors to submit written assurances of meeting small business participation goals; and facilitating ways to ease the costs associated with obtaining insurance and surety bonds needed to qualify for contract bids.
As a race- and gender-neutral program, the SBDP is open to all certified small businesses located in greater Houston and the surrounding areas including Harris, Galveston, Fort Bend, Montgomery, Waller, Liberty, Chambers and Brazoria counties. An individual small business owner's personal net worth must not exceed $750,000 (excluding the business and homestead).
To participate in the SBDP, a company must complete and submit an application and vendor information form. The application must be accompanied by a copy of the company's small business certification, which can be granted by the city of Houston, Houston Minority Business Council, METRO, U.S. Small Business Administration 8(a) and the Women's Business Enterprise Alliance. Upon PHA staff review and approval of a company's application and small business certification, a company becomes eligible to participate in the SBDP.
The SBDP hosts monthly networking forums called "Business Opportunities at the Port." During the first quarter of 2004, approximately 215 vendors attended the forums. The upcoming forums are scheduled for the first Wednesdays of each month from 4 p.m. until 6 p.m. Various PHA staff members will be available at the forums to answer questions about current proposals and refreshments will be served.
Sound Wall Construction
The commission evaluated and ranked competitive sealed proposals and authorized negotiation of a contract for the construction of a sound wall for Phase 1 of the entry/exit pre-check and inspection facilities at Barbours Cut. The top-ranked company was Forde Construction Co., Inc., a firm that was among the first to enroll in the SBDP and recently graduated from the program. As a prospective prime contractor, Forde's proposal included 35.8 percent small business participation.
Forde was followed in the ranking by John Reed and Company, LTD and MB Western Industrial, respectively. Pending the successful outcome of negotiations, the sound wall construction contract is expected to range between $900,000 and $1.4 million.
Trash Disposal
The commission evaluated and ranked competitive sealed proposals and authorized negotiation of a one-year contract for trash disposal services for PHA's north and south Turning Basin, Barbours Cut and Woodhouse terminals. Waste Management received the top ranking followed by BFI Industries and Republic Waste Services, respectively. Pending the successful outcome of negotiations, the estimated $324,000 contract award is expected to include the PHA's standard 150 percent overage clause.
PuriNOx Purchase
The commission approved a recommendation to award a $1 million contract to J.A.M. Distributing Co., for the purchase of approximately 900,000 gallons of PuriNOx diesel emulsion fuel for use in off-road, diesel-powered equipment at PHA's Barbours Cut Container Terminal. If approved, the one-year contract would begin on April 29, 2004.
PuriNOx is manufactured by the Lubrizol Corporation, which has designated J.A.M. Distributing Co. as the exclusive distributor of the product in Texas. Last year, the PHA committed to use the diesel emulsion in 28 yard trucks and 28 rubber-tired gantry (RTG) cranes at Barbours Cut. Five new PuriNOx-fueled cranes are expected to be added to the fleet this year. The incremental cost for PuriNOx is covered by a Texas Emission Reduction Plan (TERP) grant from the Texas Commission on Environmental Quality. The use of the fuel has resulted in significant reductions in emissions of nitrogen oxide (NOx) and particulate matter with no negative impacts on operational efficiency.
The next PHA commission meeting is scheduled for Monday, May 24, 2004 beginning at a special time - 3 p.m. - at the PHA Executive Office Building located at 111 East Loop North (Exit 29 off Loop 610) in Houston. The meeting is open to the public.
The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com
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