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SR-6-S (10) r ... 6-5 PURCH:PW:kfjsrbd2442.word.purch Council Meeting: December 8, 1992 nrr \.; .. uf ~ L~ :~~2 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 6-5 - 1 - DEe ;: '- .........L 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 - 2 -