DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Annual Contract for Light Duty Trucks
SUMMARY:
This ordinance authorizes annual contracts with Alamo City Chevrolet, Ancira Motor Company and Grande Truck Center to provide the City of San Antonio with Light Duty Trucks for an estimated total contract value of $4,172,319.72 over a two year period.
The FY 2017 estimated portion of the contract is $2,050,159.86 for the purchase of up to 90 vehicles. Funding is available from the FY 2017 Adopted Budgets of the Equipment Renewal and Replacement Fund (ERRF) in the amount of $1,379,335.06, Parks Department General Fund in the amount of $164,291.80, Development Services Fund in the amount of $195,354.00, Right of Way Fund in the amount of $245,784.00, Storm Water Operating Fund in the amount of $24,431.00, Aviation Operation & Maintenance Fund in the amount of $20,482.00, and Solid Waste Operating Fund in the amount of $20,482.00. Additional light duty truck purchases would be subject to the appropriation of funds.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of seven competitive bids to provide the Building and Equipment Services Department with an annual contract for the purchase of light duty trucks. The estimated total cost of the three proposed contracts is $4,172,319.72 over a two year period. The light duty trucks purchased through these contracts will be utilized by City departments for a variety of tasks that include parking enforcement, hauling supplies and equipment and transportation of staff.
The initial term of this contract is for a period of one year. One additional one-year renewal at the City’s option shall also be authorized by this Ordinance. These annual contracts are expected to supply up to 90 light duty trucks for FY 2017, and additional light duty trucks purchases in FY 2018 and FY 2019 subject to the appropriation of funds. Vehicles will be purchased by the City on an as needed basis from available funds for the replacement of existing light duty trucks and additional vehicles for new programs.
Pricing will be fixed for the initial model year as awarded by this contract. Price changes may be allowed for each new model year based upon the manufacturers’ price changes. Any price change request will be validated to the Producers Price Index. The City reserves the right to accept or reject any price change request.
The Invitation for Bid (IFB) responses were evaluated based on the published bid specifications. Item 1 is recommended for award to Alamo City Chevrolet, who is a local business. Therefore, application of Local Preference Program was not required.
In accordance with the Local Preference Program, Item 2 is recommended for award to Ancira Motor Company. The local bidder submitted a bid within 3% of the non-local bidder. The Local Preference Program award will result in an additional cost to the City of $428.00 in the initial contract term.
In accordance with the Local Preference Program, Item 3 is recommended for award to Ancira Motor Company. The local bidder submitted a bid within 3% of the non-local bidder. The Local Preference Program award will result in an additional cost to the City of $295.00 in the initial contract term.
Items 4, 5 and 7 are recommended for award to Ancira Motor Company who is a local business. Therefore, application of Local Preference Program was not required.
In accordance with the Local Preference Program, Item 6 is recommended for award to Grande Truck Center. The local bidder submitted a bid within 3% of the non-local bidder. The Local Preference Program award will result in an additional cost to the City of $10,159.36 in the initial contract term.
ISSUE:
These annual contracts will allow for the purchase of an estimated quantity of 178 light duty trucks over a two year period. Currently, there are 823 light duty trucks in the City’s fleet. Establishing a multi-year contract will eliminate the need for a bidding process in the option year of the contract resulting in administrative efficiencies. This will also allow orders to be placed in a more timely manner ensuring vehicles are replaced within scheduled parameters.
All units are covered by a minimum 36 month/36,000 mile warranty that will start on the day each unit is placed in service. The life expectancy of these light duty trucks ranges from 96 to 120 months.
The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current light duty trucks scheduled for replacement have met or will meet their age and or mileage requirement cycles before they are replaced. The replacement date is considered the optimum time for replacement in that delay of the acquisition could result in the vehicles incurring higher maintenance costs as a result of age or high mileage. This could impact the City’s ability to provide essential services to the residents of San Antonio.
FISCAL IMPACT:
This ordinance authorizes annual contracts with Alamo City Chevrolet, Ancira Motor Company and Grande Truck Center to provide the City of San Antonio with Light Duty Trucks for an estimated total contract value of $4,172,319.72 over a two year period.
The FY 2017 estimated portion of the contract is $2,050,159.86 for up to 90 vehicles. Funding is available from the FY 2017 Adopted Budgets of the Equipment Renewal and Replacement Fund (ERRF) in the amount of $1,379,335.06, Parks Department General Fund in the amount of $164,291.80, Development Services Fund in the amount of $195,354.00, Right of Way Fund in the amount of $245,784.00, Storm Water Operating Fund in the amount of $24,431.00, Aviation Operation & Maintenance Fund in the amount of $20,482.00, and Solid Waste Operating Fund in the amount of $20,482.00.
Additional light duty truck purchases from these contracts would be subject to the appropriation of subsequent annual funding.
RECOMMENDATION:
Staff recommends the approval of these contracts with Alamo City Chevrolet, Ancira Motor Company and Grande Truck Center for the purchase of light duty trucks for an estimated cost of $4,172,319.72 over a two year period.
These contracts are procured on the basis of low bid and a Contracts Disclosure Form is not required.