sr-021412-3d19
AMM
ityo City Council Report
Santa Monica
City Council Meeting: February 14, 2012
Agenda Item: B -D
To: Mayor and City Council
From: Edward F. King, Director of Transit Services
Subject: Reject Bid No. 3060 to Provide Tire Leasing and Related Services
Recommended Action
Staff recommends that City Council
1. Reject all bids received for tire leasing and related services at the Big Blue Bus:
2. Direct staff to reissue a request for bids in order to obtain the best bidder for this
project.
Executive Summary
Tire leasing has been a standard practice in the transit industry since the 1940's and a
common practice at the Big Blue Bus for at least 40 years. Leasing is more economical
than purchasing tires since the cost is based on a flat rate per mile driven and the costs
of inspection, repair, replacement, and inventory control. Staff recommends that City
Council reject all bid responses to bid #3060 to provide tire leasing and related services
due to an error in the bid documents as well as inconsistent bid responses.
Discussion
In August 2011, the City published Notices Inviting Bids to provide tire leasing services
as required by the Big Blue Bus in accordance with City specifications. The bid was
posted on the City's on -line bidding site Planet Bids, and notices were advertised in the
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. Two bids were received and publicly opened on August 22, 2011. During
review of the bids, it was determined that the bid documents erroneously neglected to
indicate the number of wheels per bus type. In addition, one bid listed a discount for
potential fuel savings, which was not authorized in the specifications.
Staff recommends rejecting both bids and reissuing a revised Notice Inviting Bids, with
additional clarification to the bid submittal requirements. This would provide potential
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bidders with a more clearly defined set of requirements and this would promote
opportunity for the City to receive bid(s) which more accurately meet specifications.
Financial Impacts & Budget Actions
There are no budget or financial impacts associated with the recommendation made in
this report.
Prepared by: Patrick Campbell, Chief Operating Officer
Approved:
Edward F. King
Director of Transit
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Forwarded to Council:
Rod Gould
City Manager