SR-11-14-1978-6JSanta Monica, California November 1, 1978
TO: Mayor and City Council Nov 4 137
FROM: City Staff
SUBJECT: Recommendation to waive competitive bidding and to
authorize direct negotiation for traffic paints.
Introduction
This report concerns waiver of the competitive bid requirement and
to authorize direct negotiation for traffic paints. This will enable
purchases on the basis of proven lowest cost per gallon per year.
Background
The City's last bid award for traffic paint was made in October, 1976,
following three - months of field testing. At that time it was noted
that two (2) of the items on which Pervo Paint Company was the low
bidder performed unfavorably in these tests. A copy of the Schedule
of Bids applicable to this award is attached.
Our bid proposal at that time called for paint products functionally
equivalent to paints identified by J.E. Bauer Company numbers. The
City was unable to specify formulas since these are proprietary with
Bauer and they are understandably reluctant to make them available
to competition. After two (2) years of use, it has been found that
generally the safe life of Pervo paint is one (1) year while Bauer
paints have a safe life of two (2) year or more. When application
costs, labor and equipment, are taken in consideration, extended life
is a significant factor. The attached Life -Cycle Cost Comparison
indicates the savings to be realized if the higher priced paint is used.
The City received informal bids in October from the two (2) known
manufacturers of a comprehensive line of traffic paints hence unit
prices have been established.
4
Nov 1 4 1978
Alternatives
1. To call for formal bids stipulating two -year longevity for
each item and calling for reimbursement of application costs
in the event of lessor product life. Since acceptable visibility
of a stripe or sign is a subjective judgement, cost recovery
might entail extensive litigation. There also is no assurance
that any vendor will submit a bid under this condition.
2. To call for formal bids stipulating paint formulas identical
with those of the Bauer Company. There is no assurance that
any competitor is capable of and willing to absorb the expense
of analyzing the individual Bauer products and supplying these
paints at a lower price.
3. To waive competitive bid requirements for traffic paints and to
authorize the City Manager to negotiate directly as the needs
for these paints arise. This will eliminate the repeated
expense and delay of future purchases and will expedite using
materials that have demonstrated the lowest applied cost per
year of service.
Recommendation
It is recommended that competitive bid procedure be waived and that
the City Manager be authorized to negotiate directly for traffic
paints.
Prepared By: R.N. Aronoff,
Purchasing Agent
LIFE - CYCLE COST COP'[PARISON
TRAFFIC PAINTS-PER GALLON
Prices quoted by both vendors October 24, 1978.
Cost to apply one (1) gallon includes labor and equipment.
Pervo paints have useful life of one (1) year.
Bauer paints have useful life of two (2) years,
November 1, 1978
J.E. Bauer Compan
Bid
Cost To
Pervo
Paint Company
$ 7.35
Apply
Bid
Cost Per
6.45
One Gal.
Price
Year
Red Curb Paint
$ 3.64
$ 6.08
S 9.72
White Premix
7.25
4.14
11.39
Yellow Premix
7.25
4.59
11.84
White Binder, 10 -Min.
4.84
4.08
8.92
Yellow Binder, 10 -Min.
4.84
4.34
9.18
Prices quoted by both vendors October 24, 1978.
Cost to apply one (1) gallon includes labor and equipment.
Pervo paints have useful life of one (1) year.
Bauer paints have useful life of two (2) years,
November 1, 1978
J.E. Bauer Compan
Bid
Cost Per
Price
Year
$ 7.35
$ 5.50
5.75
6.50
6.45
6.85
4.44
4.64
5.64
5.24