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Chief Administrative Office, Procurement and Contracts on behalf of Department of Transportation, recommending the Board approve the following:
1) Award Bid 21-863-033 for the purchase of Fleet Tires - automotive, light truck and miscellaneous tires and tire studding services to the sole qualified bidder, Sierra Nevada Tire and Wheel of Placerville, CA.;
2) Authorize the Purchasing Agent to issue a purchase order contract in the amount of $450,000 ($150,000 annually) for a thirty-six (36) month term following Board approval; and
3) Authorize the Purchasing Agent to increase the purchase order contract on an "as needed" basis during the awarded period as long as funding is available within the requesting department's budget.
FUNDING: Fleet Internal Service Fund.
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DISCUSSION / BACKGROUND
Due to ongoing Covid-related manufacturing issues and the changes in current market conditions, Contract 4273 with Sierra Nevada Tire and Wheel of Placerville, CA for the purchase of Fleet Tires - automotive, light truck and miscellaneous tires and tire studding services was cancelled at the request of the vendor due to the vendor not being able to obtain tires locally. As a result, the vendor was incurring long distance freight charges and ultimately losing money on the sales of various tires. The previous Bid #19-863-075 did not allow the vendor include charge freight charges in order to recoup their costs.
At the request of the Department of Transportation, Maintenance and Operations Division, the Procurement and Contracts Division issued a new invitation to Bid #20-863-033 for the purchase of Fleet Tires - automotive, light truck and miscellaneous tires and tire studding services, allowing for the cost of freight to be added to each order.
Twelve (12) Bid Notification letters were mailed, six (6) to local vendors. One (1) qualified response was received from local vendor Sierra Nevada Tire and Wheel of Placerville, CA.
ALTERNATIVES
The current Contract 4273 with Sierra Nevada Tire and Wheel of Placerville, CA for the purchase of Fleet Tires - automotive, light truck and miscellaneous tires and tire studding services had to be cancelled due to the vendor having to absorb freight charges from the manufacturers.
A new purchase order contract is needed to maintain continuity of Fleet operations and vehicle maintenance.
PRIOR BOARD ACTION
06/20/2017; Legistar File 17-0599; Agenda Item #25 - Awarded Bid #17-863-063
08/06/2019; Legistar File 19-0990, Agenda Item #10 - Awarded Bid #19-863-075
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Central Services Division
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding is available within the FY 2020-21 Department of Transportation Fleet Internal Service Fund Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Rafael Martinez, Director, Department of Transportation
Michele Weimer, Procurement and Contracts Manager/Purchasing Agent