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HomeMy WebLinkAboutItem 11m - Reject Bid and Purchase One 2024 Chevrolet 4WD Tahoe DATE: May 7, 2024 TO: Honorable Mayor and City Council FROM: Chen Suen, Fire Chief By: Tom Devlin, Battalion Chief Maria Lourdes Taylor, Sr. Management Analyst SUBJECT: REJECT BID FROM COAST-TO-COAST CUSTOM MOBILE, AND APPROVE A PURCHASE ORDER WITH GLENDORA CHEVROLET FOR THE PURCHASE OF ONE 1/2-TON 2024 CHEVROLET FOUR-WHEEL DRIVE TAHOE IN THE AMOUNT OF $76,828 CEQA: Not a Project Recommendation: Approve SUMMARY The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the purchase of one new utility vehicle for the Fire Department. To ensure that the City is receiving the most competitive pricing for the purchase of this vehicle, three attempts of a formal bid process were conducted in November 2023, December 2023, and March 2024. The November 2023 and December 2023 competitive bidding were for the vehicle functionalities offered by a 3/4-ton four-wheel drive (“4WD”) crew cab pick-up truck. Unfortunately, no bids were received in November 2023, and during the second bid process in December 2023, only one bid was submitted by Coast-to-Coast Custom Mobile. The bid submitted by Coast- to-Coast Custom Mobile was for $126,681, which was 50% higher than the manufacturer’s suggested retail price and was not within budget. For the third and final bid in March 2024, it was determined that a new 1/2-ton 2024 4WD Chevrolet Tahoe has comparable vehicle features that could meet the Fire Department’s utility vehicle specifications for less cost. Glendora Chevrolet was deemed the most responsive bidder during the third and final bid process. It is recommended that the City Council reject the high bid from Coast-to-Coast Custom Mobile, and approve a Purchase Order with Glendora Chevrolet for the purchase of a 1/2-ton 2024 Chevrolet 4WD Tahoe in the amount of $76,828. BACKGROUND As part of a new program introduced by the Fire Department during the City’s FY 2023- Reject Bid and Purchase One 2024 Chevrolet 4WD Tahoe May 7, 2024 Page 2 of 3 24 Budget Adoption, $100,000 was allocated from the Equipment Acquisition Budget for the purchase of one new utility truck for the Fire Department. This vehicle was intended to support daily operations by transporting Fire personnel and their safety equipment as well as hauling various materials. This vehicle will also be utilized in supporting single- resource or team deployments during a wildland firefighting response. Originally, the vehicle identified to deliver these operational and functional features was a 3/4-ton four-wheel drive (“4WD”) crew cab pick-up truck. In November 2023, the first formal bid was issued with no bids received. A second formal bid was executed in December 2023, with one bid submitted by Coast-to-Coast Custom Mobile vendor for $126, 681, nearly 30% over budget and almost 50% higher than the manufacturer’s suggested retail price of $85,000. After examination of the two previous bid results and further consideration of the current market for a 3/4-ton 4WD crew cab truck, it was concluded that pursuing this vehicle model is not the most fiscally responsible option. The third and final formal bid process proceeded in March 2024. Prior to commencing the third bid process, staff determined that a 1/2-ton Chevrolet 4WD Tahoe has comparable vehicle specifications that still align with the Fire Department’s operational needs, and cost significantly less than a 3/4-ton 4WD crew cab truck. DISCUSSION A Notice Inviting Bids were published in accordance with City Council Resolution No. 7483, and bid packages were distributed to local vendors during the three formal bidding periods: November 2023, December 2023, and March 2024. No bid was received in November 2023, and in December 2023, only one bid was provided from Coast-to-Coast Custom Mobile totaling $126,6801, for the purchase of a 3/4-ton 4WD crew cab pick-up truck. Due to the exceedingly high quote from Coast-to-Coast Custom Mobile, it is recommended that the City Council reject this bid. Based on two unsuccessful bid outcomes, the third and final bid process was conducted in March 2024 with the following results: Bidder Location Bid Amount Sierra Chevrolet of Monrovia* Monrovia, CA $ 76,300 Glendora Chevrolet Glendora, CA $ 76,828 Premier Chevrolet Buena Park, CA $ 85,600 *Non-responsive bid due to its inability to meet the vehicle’s bid specification requirements One of the required specifications items in the City’s bid is the vendor’s ability to offer a timely delivery of a new utility vehicle with a red exterior color. Although Sierra Chevrolet of Monrovia was the lowest bidder, they were unable to offer the required color, thus, their bid was deemed unresponsive. The second lowest bid was submitted by Glendora Chevrolet, whose background and proposal were thoroughly evaluated. Glendora Reject Bid and Purchase One 2024 Chevrolet 4WD Tahoe May 7, 2024 Page 3 of 3 Chevrolet’s bid meets the Fire Department’s vehicle specification and budget requirements, and they can deliver the vehicle immediately. Based on this review, it was confirmed that Glendora Chevrolet was the lowest responsive bidder. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The total cost to purchase a new 1/2-ton 2024 Chevrolet 4WD Tahoe vehicle is $76,828. Sufficient funds in the amount of $100,000 have been allocated in the FY 2023-24 Equipment Acquisition Budget for the purchase of this vehicle and its related upfitting costs. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and that the City Council reject the bid from Coast-to-Coast Custom Mobile, and approve a Purchase Order with Glendora Chevrolet for the purchase of a one 1/2-ton 2024 Chevrolet Four-Wheel Drive Tahoe in the amount of $76,828.