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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