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PURCH:PW:kfjsrbd2442.word.purch
Council Meeting: December 8, 1992
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Santa Monica, California
TO: Mayor and city council
FROM: city staff
SUBJECT: Recommendation to Award Bid to Furnish and Deliver
Pneumatic Tires and Tubes to be Leased for Use on Buses
of the Santa Monica Municipal Bus Lines, Bid Number
2442
Introduction
This report concerns award of bid to furnish and deliver
pneumatic tires and tubes to be leased for use on buses of the
Santa Monica Municipal Bus Lines for the Transportation
Department at specified unit prices for a three-year period,
including two one-year renewal options.
Background
In response to published Notices Inviting Bids (published October
29 and 3D, 1992) to furnish and deliver pneumatic tires and tubes
to be leased for use on buses of the Santa Monica Municipal Bus
Lines, in accordance with city specifications, bids were received
and publicly opened and read on November 23, 1992. proposal
forms were mailed to two vendors and notices were advertised in
accordance with city Charter and Municipal Code provisions.
Bidders were asked to bid on a basic three year contract with two
one year options. Bidders were also requested to bid on two
alternative types of contracts: one using the traditional
year-to-year escalation and one using a fixed price system. The
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two alternatives were evaluated by staff for each bidder to
determine which produced the lowest cost to the city. For the
basic three year contract (using a 5% annual inflation rate, four
million annual miles of operation and continuing the use of tire
manufacturarers service personnel), the bids were as follows:
I. Alternative A (Escalation Rate)
(Cost of Representative
Array of tires)
Firestone
Goodyear
$
829,495
789,257
II. Alternative B (Fixed Rate)
Firestone
Goodyear
$
787,123
745,384
staff has evaluated the low bid and finds that it meets City
specifications.
Budget/Financial Impact
Fiscal Year 1992/93 appropriation authority for this purchase is
in the Transportation Department, account number
41-750-657-20093-8900-99371.
Recommendation
It is recommended that the award of Bid #2442 be made to Goodyear
Tire & Rubber Co. at specified unit prices under alternative B
(fixed rate), with two one-year renewal options, as the lowest
and best bidder.
Prepared by: Pam Wortham, Purchasing Agent
Bob Ayer, Transportation
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