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SR 05-22-2018 3N City Council Report City Council Meeting: May 22, 2018 Agenda Item: 3.N 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid to Bob Wondries Ford for Original Equipment Manufacturer Ford Parts Recommended Action Staff recommends that the City Council: 1. Award Bid #4311 to Bob Wondries Ford, a California-based company, for the purchase and delivery of Ford Original Equipment Manufacturer (OEM) parts and materials; 2. Authorize the Purchasing Services Manager to issue a purchase order with Bob Wondries Ford for the purchase and delivery of Ford Original Equipment Manufacturer (OEM) parts and materials in the amount not to exceed $110,822 for one year, with four additional one-year renewal options to extend on the same terms and conditions, for a total amount not to exceed $554,110, with future year funding contingent on Council budget approval. Executive Summary To ensure the safe and reliable operation of fleet vehicles, City staff utilizes a variety of new parts manufactured by Ford to perform routine maintenance on all 348 City-owned Ford vehicles. Staff recommends issuing a purchase order with Bob Wondries Ford for the purchase and delivery of Ford Original Equipment Manufacturer (OEM) parts, for a total amount not to exceed $554,110 over a five-year period, with future year funding contingent on Council budget approval. Discussion The City purchases a variety of Ford OEM parts to replace worn and damaged parts on most of the 348 Ford vehicles in the City fleet, including 115 Ford pickup trucks, 131 Crown Victoria model police sedans, and 51 Police Interceptor vehicles, which make up a majority of the City’s Ford vehicle inventory. Since the expiration of the previous vendor’s bid on June 30, 2017, the City has been purchasing OEM Ford parts from 2 of 3 several local vendors, pending the award of bid #4311. Due to workload and priorities, staff were not able to complete the bid prior to the expiration of the renewal options. Vendor Selection On March 21, 2018, the City published Notices Inviting Bids to furnish and deliver Ford OEM parts in accordance with City specifications. The bid was posted on the City’s on- line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Eleven vendors downloaded the bid. Three bids were received and publicly opened on April 4, 2018. The results are as follows: Bob Wondries Ford $34,181.83 Vista Ford Lincoln $37,181.84 Airport Marina Ford $41,296.19 Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Bob Wondries Ford provided the overall lowest bid, offered no freight charges for both in-stock and non-stocked items, and submitted the lowest markup on list price at 2.5%, compared to a 10% markup from other bidders. Based on these criteria, Bob Wondries Ford, the lowest bidder, is recommended as the best bidder. Financial Impacts and Budget Actions The purchase order to be awarded to Bob Wondries Ford is for an amount not to exceed $554,110. Funds in the amount of $26,620 are available in the FY 2017-18 budget in the Public Works Department. The purchase order will be charged to account 54459.522990. Future year funding is contingent on Council budget approval. 3 of 3 Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Bob Wondries Ford Oaks Form