HomeMy WebLinkAboutItem 2e - Reject Pickup Truck BidDATE
TO:
FROM:
October 15, 2013
Honorable Mayor and City Council
STAFF REPORT
Public Works Services Department
Tom Tait, Public Works Services Director
By: Dave McVey, General Services Superintendent
SUBJECT: REJECT THE ONE BID RECEIVED FOR THE PURCHASE OF THREE
CNG PICKUP TRUCKS AND DIRECT STAFF TO RE -BID
Recommendation: Approve
SUMMARY
The Public Works Services Department conducted a formal bidding process to award
the purchase of three Compressed Natural Gas (CNG) pickup trucks for the Streets and
Utilities Division. However, only one bid was received. In order to ensure that the City
is getting competitive pricing for the purchase of three CNG pickup trucks, it is
recommended that the City Council reject the one bid received and direct staff to re -bid.
DISCUSSION
The Fiscal Year 2013 -14 Equipment Acquisition Program provides for the replacement
of three pickup trucks in the Public Works Services Department. The three pickup
trucks are utilized by the Streets and Utilities Division of the Public Works Services
Department and meet the mileage, age, and /or maintenance requirements of the City's
Vehicle Replacement Program. The three pickup trucks will be replaced by new CNG
pickup trucks. The Public Works Services Department's goal is to reduce the City's
petroleum usage, and diversify the type of vehicles in the fleet. CNG vehicles are
natural gas vehicles that can achieve up to 93% reduction in carbon monoxide
emissions, and, because natural gas burns cleaner, this results in less wear and tear
than a typical gasoline or diesel engine.
A notice inviting bids was published in the City's adjudicated newspaper and bid
packages were distributed to local area dealerships. The City Clerk publicly opened the
one sealed bid on September 24, 2013, with the following result:
Reject CNG Pickup Trucks Bid
October 15, 2013
Page 2 of 2
Bidder
Location Amount
South Bay Ford Hawthorne, CA $130,873.99
Prior to conducting the formal bid, staff contacted several area dealerships to inform
them that the City would be conducting a formal bidding process for the purchase of
three CNG pickup trucks. The City contacted the prospective bidders and found that
two Chevrolet dealerships were unable to submit a bid because they do not offer
dedicated CNG trucks. One Ford dealership filled out the bid but failed to submit the bid
on time. Another Ford dealership was unable to obtain utility body manufacturing
pricing before the bid due date. It is anticipated that extending the bidding time period,
and having staff follow up with potential bidders on the status of completing their bid will
result in the City receiving competitive bids.
FISCAL IMPACT
Funds in the amount of $137,600 have been budgeted in Fiscal Year 2013 -14
Equipment Acquisition Budget.
RECOMMENDATION
It is recommended that the City Council reject the one bid received for the purchase of
three CNG pickup trucks and direct staff to re -bid.
Approved.
Dominic Lazzareltd
City Manager