HomeMy WebLinkAboutItem 11j - Purschase of a Pickup TruckPurchase Order for Pickup Truck
July 18, 2023
Page 1 of 3
DATE: July 18, 2023
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: REJECT LOW BID FROM UAG CERRITOS I, LLC DBA PENSKE
CHEVROLET AND APPROVE A PURCHASE ORDER WITH MOUNTAIN
VIEW CHEVROLET FOR THE PURCHASE OF ONE 2023 CHEVROLET
SILVERADO 1500 PICKUP TRUCK IN THE AMOUNT OF $56,423.60
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of
one 1/2-ton pickup truck for the Public Works Services Department (“PWSD”) that meets
the criteria for replacement in the Vehicle Replacement Program. To ensure that the City
is receiving the most competitive price, a formal bid process was conducted. UAG
Cerritos I, LLC dba Penske Chevrolet submitted the lowest bid. During the evaluation
process, it was discovered that UAG Cerritos I, LLC dba Penske Chevrolet provided a bid
for one 2024 model year truck rather than the 2023 model year requested. Mountain View
Chevrolet was the second lowest bid received, which was determined to be responsive.
It is recommended that the City Council reject the low bid submitted by UAG Cerritos I,
LLC dba Penske Chevrolet and approve a Purchase Order with Mountain View Chevrolet
for the purchase of one 2023 Chevrolet Silverado 1500 pickup truck in the amount of
$56,423.60.
BACKGROUND
The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of
one 1/2-ton pickup truck for the PWSD. The 2005 Chevrolet 1500 pickup truck, asset
#80216, experienced a catastrophic failure of its early generation hybrid drive system.
Replacement parts are obsolete and were not available to repair this vehicle. The lack of
available repair parts forced premature replacement of this vehicle, which had 91,801
miles at the time of the catastrophic failure.
Purchase Order for Pickup Truck
July 18, 2023
Page 2 of 3
DISCUSSION
A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483
and bid packages were distributed to local dealerships who provide this type of vehicle.
Two bids were received with the following results:
Bidder Location Bid Amount
UAG Cerritos I, LLC dba Penske Chevrolet Cerritos, CA $54,723.12
Mountain View Chevrolet Upland, CA $56,423.60
Although bid documents were sent to various dealerships, only two bids were received.
An inquiry was conducted into the reasons that the dealerships solicited for this bid did
not submit a bid. Reasons provided included not having sufficient time to submit a bid or
no interest in submitting a bid for this vehicle.
After careful review and consideration, the bid documents were reviewed for content and
the dealerships’ background was investigated. During the review process, staff
discovered that UAG Cerritos I, LLC dba Penske Chevrolet provided a bid for a 2024
model year truck rather than the 2023 model year specified in the bid specifications. City
staff contacted UAG Cerritos I, LLC dba Penske Chevrolet to confirm the model year of
the vehicle submitted in their bid, and a representative confirmed that 2024 was correct.
Since the bid documents clearly stated that the request was for a 2023 model year truck,
UAG Cerritos I, LLC dba Penske Chevrolet is considered non-responsive and should be
rejected. Importantly, the 2024 model year truck will not be available to the City as soon
as the 2023 model truck, which is available for immediate delivery and was the reason
the City requested bids for a 2023 model.
The second low bidder, Mountain View Chevrolet is considered the lowest responsive
bidder. The bid submitted by Mountain View Chevrolet was reviewed and the dealership’s
background investigated. Based on this review, it has been determined that Mountain
View Chevrolet is the lowest responsive bidder that met the City’s required specifications.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The total purchase cost for the vehicle is $56,423.60. Funds in the amount of $60,900
have been budgeted in the Fiscal Year 2023-24 Equipment Replacement Budget.
Purchase Order for Pickup Truck
July 18, 2023
Page 3 of 3
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project, and therefore, is exempt under the California Environmental Quality Act
(“CEQA”); and reject the low bid from UAG Cerritos I, LLC dba Penske Chevrolet and
approve a Purchase Order with Mountain View Chevrolet for the purchase of one 2023
Chevrolet Silverado 1500 pickup truck in the amount of $56,423.60.