Title
Department of Transportation recommending the Board approve the following:
1) Award Bid 22-863-008 for the purchase of Equipment/Truck Tires, Tubes, Wheels and Related Products and Services to the sole qualified bidder Sierra Nevada Tire and Wheel of Placerville, CA;
2) Authorize the Purchasing Agent to issue a purchase contract in the amount of $285,000 ($95,000/year) for a thirty-six (36) month period following Board approval; and
3) Authorize the Purchasing Agent to increase the purchase contract on an "as needed" basis during the awarded period as long as funding is available within the requesting department's budget.
FUNDING: Road Fund.
Body
DISCUSSION / BACKGROUND
The Board of Supervisors previously awarded Bid #19-863-074 for the purchase of Equipment/Truck Tires, Tubes, Wheels and Related Products and Services for a three year period in July of 2019. Due to global market factors such as increases in raw material, labor, and shipping costs, along with increased tariffs and import taxes, the awarded vendor was unable to maintain pricing and had to cancel their contract with the County.
At the request of the Department of Transportation, the Chief Administrative Office, Procurement and Contracts Division, issued a new Invitation to Bid #22-863-008 for the purchase of Equipment/Truck Tires, Tubes, Wheels and Related Products and Services for the West and East Slopes of El Dorado County.
The new Invitation to Bid was solicited with changes made to the escalation clause to allow for manufacturer increases beyond raw materials as provided for in the previous Bid. The awarded vendor will also be allowed to increase their prices for the addition of freight as a pass-through cost only with no mark-up permitted. Twelve (12) Bid Notifications were mailed, six (6) to local vendors, and the Invitation to Bid was posted on the County's eProcurement system, PlanetBids. One qualified response was received from the local vendor Sierra Nevada Tire and Wheel of Placerville, CA.
ALTERNATIVES
There are no alternatives. The purchase of truck tires, tubes, wheels and related products is required for the maintenance of County Vehicles. The vehicles associated with these purchases are used for road maintenance. If the vehicles are not maintained for active operations/use, road maintenance schedules could be adversely affected by out-of-service issues and potentially affect the public's safe use of County roadways.
PRIOR BOARD ACTION
07/16/2019: Agenda Item #19-0907 - Award of Bid #19-863-074
05/15/2018: Agenda Item #18-0559 - Contract extension
05/17/2016: Agenda Item #16-0424 - Award of Bid #16-863-059
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Procurement and Contracts Division issued Invitation to Bid #22-863-008.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding is available within the FY 2020-21 Department of Transportation Road Maintenance 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 & Contracts Manager