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HomeMy WebLinkAboutItem 2c: Award a purchase order contract to Daniels Tire Service for the purchase of City vehicles tires:Ww, DATE: September 4, 2012 STAFF REPORT Public Works Services Department TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Dave McVey, General Services Superintendent SUBJECT: AWARD A PURCHASE ORDER CONTRACT TO DANIELS TIRE SERVICE FOR THE PURCHASE OF TIRES AND TIRE RELATED SERVICES FOR CITY VEHICLES IN THE AMOUNT OF $86,616. Recommendation: Approve SUMMARY On August 7, 2012, the City Council rejected the bids for the purchase of tires and tire related services for City vehicles and directed the Public Works Services Department (PWSD) to re -bid this contract. The City received two bids but only the bid from Daniels Tire Service was determined to be responsive. The bids are comparable to the State's vehicle tire pricing list, which is considered to be low and competitive. Based on the bid results received, it is recommended that the City Council award a purchase order contract to Daniels Tire Service for the purchase of tires and tire related services for City vehicles in the amount of $86,616. DISCUSSION The Public Works Services Department's Fleet Section is responsible for purchasing and maintaining tires and accessories for all City vehicles. It is critical that Fleet Services maintain the proper on -hand inventory of tires to prevent an interruption of day -to -day operations. Tire changing services are essential for heavy duty equipment, which require specific expertise and specialty equipment that the City does not have. Last year, PWSD's Fleet Section purchased 390 tires and properly disposed of 353 tires that were worn out. $45,850 was expended last year for the purchase of tires and tire- related services. On August 7, 2012, the City Council rejected the bids for the purchase of tires and tire related services for City vehicles due to receiving only one responsive bid. On August 9, 2012, the Public Works Services Department conducted a formal bidding process to award an annual contract for the purchase of tires and tire related services for City Honorable Mayor and City Council September 4, 2012 Page 2 of 3 vehicles. The bid specification contains a specific list of items covering every possible tire brand, size, and related services for the City's fleet. This will ensure that under the purchase agreement, Fleet Services will have access to items necessary for any and all repairs that may arise. Notices inviting bids were published in the City's adjudicated newspaper and bid packages were distributed to area vendors. Two bids were received with only one bidder determined to be responsive. The bid result included the following: Bidder Location Amount Daniels Tire Service Santa Fe Springs, CA $86,616.00 Industry Tire City of Industry, CA Unavailable The bid documents were reviewed for content and the background and competency of the lowest responsible bidder was verified. Industry Tire was deemed unresponsive because their bid application was incomplete. It was concluded that Daniels Tire Service met and complied with the bid specifications as required in the bid documents. Daniels Tire Service has supplied tires for the City's fleet in the past and has always provided excellent service. In addition, the bid prices provided by Daniels Tire Service are comparable with the State of California vehicle pricing schedule, which is considered to be low and competitive. The State's pricing schedule is structured based on services or goods that have been competitively assessed, negotiated or bid to ensure that they are receiving reasonable and cost - effective pricing for these commodities. In order to get more bids City staff delivered bid packages to the person responsible for submitting the bid, called local vendors to remind them of the bid due date, and extending the bid opening from two weeks to three and a half weeks. Vendors who did not submit a bid were contacted and the most common response was that they could not supply the various types of City tires listed in the bid specifications. The City's specifications included tire sizes ranging from light- medium, heavy duty, ' fire suppression, and very large tires, like the ones used on the City's backhoes and loaders. Daniels Tire Service is a large, full - service tire dealership that carries all lines and sizes of tires and offers tire related accessories listed in the bid specifications. Based on the bid results received, it is recommended that the City Council award a purchase order contract to Daniels Tire Service for the purchase of tires and tire related services for City vehicles in the amount of $86,616. FISCAL IMPACT Sufficient funds have been budgeted under each Department's Vehicle Maintenance Accounts in Fiscal Year 2012 -13 Operating Budget for this contract. Honorable Mayor and City Council September 4, 2012 Page 3 of 3 RECOMMENDATION It is recommended that the City Council approve the following: 1. Award a purchase order contract to Daniels Tire Service for the purchase of tires and tire related services for City vehicles in the amount of $86,616. 2. Waive any informality in the bid or bidding process. APPROVED: Dominic Lazza City Manager