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HomeMy WebLinkAboutItem 11k - Purchase of Heavy Duty Pickup TrucksPurchase Order for Heavy Duty Pickup Trucks 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 BIDS FROM UAG CERRITOS I, LLC DBA PENSKE CHEVROLET AND COURTESY CHEVROLET CENTER AND APPROVE A PURCHASE ORDER WITH SIERRA CHEVROLET OF MONROVIA FOR THE PURCHASE OF THREE 2023 CHEVROLET SILVERADO 2500 HEAVY DUTY UTILITY SERVICE BODY PICKUP TRUCKS IN THE AMOUNT OF $196,682.31 CEQA: Not a Project Recommendation: Approve SUMMARY The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of three Heavy Duty 3/4-ton pickup trucks for the Public Works Services Department (“PWSD”) that meet the criteria for replacement in the Vehicle Replacement Program. To ensure that the City is receiving the most competitive price for three 2023 Chevrolet Silverado 2500 Heavy Duty Utility Service Body pickup trucks, 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 three 2024 model year trucks rather than the 2023 model year requested in the bid documents, rendering their bid unresponsive. Courtesy Chevrolet Center was the second lowest bid received and it was discovered that they also provided a bid for three 2024 model year trucks rather than the 2023 model year requested. Sierra Chevrolet of Monrovia was the third lowest bid received, which was determined to be responsive. It is recommended that the City Council reject the low bids submitted by UAG Cerritos I, LLC dba Penske Chevrolet and Courtesy Chevrolet Center, and approve a purchase order with Sierra Chevrolet of Monrovia for the purchase of three 2023 Chevrolet Silverado 2500 Heavy Duty Utility Service Body pickup trucks in the amount of $196,682.31. Purchase Order for Heavy Duty Pickup Trucks July 18, 2023 Page 2 of 3 BACKGROUND The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of three Heavy Duty 3/4-ton pickup trucks in the PWSD. The vehicles that will be replaced are currently used by the Utilities section of the PWSD and all meet the mileage and/or age requirements of the City’s Vehicle Replacement Program. The vehicles are as follows: • 2008 Ford F-250 3/4-ton pickup utility body with 133,385 miles • 2008 Ford F-250 3/4-ton pickup utility body with 107,713 miles • 2011 Ford F-250 3/4-ton pickup utility body with 134,914 miles These heavy-duty pickup trucks are used by Utilities section maintenance personnel for repairing/replacing water services and water mains. The heavy-duty chassis is required to accommodate all the parts and fittings necessary to maintain the City’s water distribution system. The three existing units will go to auction once replaced. DISCUSSION A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483, and bid packages were distributed to local vendors who provide this type of vehicle. Four bids were received with the following results: Bidder Location Bid Amount UAG Cerritos I, LLC dba Penske Chevrolet Cerritos, CA $176,775.00 Courtesy Chevrolet Center San Diego, CA $193,320.07 Sierra Chevrolet of Monrovia Monrovia, CA $196,682.31 Mountain View Chevrolet Upland, CA $200,245.56 All bid documents were reviewed for content and each vendors background was investigated. During the review process, staff discovered that UAG Cerritos I, LLC dba Penske Chevrolet provided a bid for three 2024 model year trucks 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 vehicles submitted in their bid, and a representative confirmed that 2024 was correct. The second low bidder, Courtesy Chevrolet Center also bid for three 2024 model year trucks rather than the 2023 model year specified in the bid specifications. They were also contacted to confirm that their bid was for 2024 model year trucks. Since the bid documents clearly stated that the request was for 2023 model year trucks, the two lowest bidders are considered non-responsive and should be rejected. Importantly, the 2024 model year trucks will not be available to the City as soon as the 2023 model trucks, which are available for immediate delivery and was the reason the City requested bids for 2023 model trucks. Purchase Order for Heavy Duty Pickup Trucks July 18, 2023 Page 3 of 3 The third low bidder, Sierra Chevrolet of Monrovia, is considered the lowest responsive bidder. The bid submitted by Sierra Chevrolet of Monrovia was reviewed and the dealership’s background investigated. Based on this review, it has been determined that Sierra Chevrolet of Monrovia is the lowest responsive bidder that met the City’s required vehicle 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 three vehicles is $196,682.31. Funds in the amount of $270,000 have been budgeted in the Fiscal Year 2023-24 Equipment Replacement Budget. The remaining budget will be used to outfit the vehicles with necessary equipment. 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 bids from by UAG Cerritos I, LLC dba Penske Chevrolet and Courtesy Chevrolet Center, and approve a Purchase Order with Sierra Chevrolet of Monrovia for the purchase of three 2023 Chevrolet Silverado 2500 Heavy Duty Utility Service Body pickup trucks in the amount of $196,682.31.