DEPARTMENT: Finance
DEPARTMENT DIRECTOR: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Annual Contract for Light Duty Pick-Up Trucks
SUMMARY:
This ordinance authorizes annual contracts with Ancira Motor Company, Grande Truck Center, and Gunn Chevrolet LTD. to provide the City of San Antonio with light duty pick-up trucks for an estimated total contract value of $4,283,553.00 over a two year period.
These contracts will provide light duty pick-up trucks for all city departments through December 31, 2020, with one additional one-year renewal at the City’s option. Funding is available in the amount of $783,369.00 as part of the FY 2020 Equipment Renewal and Replacement Fund (ERRF) adopted budget. Additional purchases from these contracts would be subject to the appropriation of subsequent annual funding.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of five bids to provide the Building and Equipment Services Department with three annual contracts for the purchase of light duty trucks. The bid submitted by Red McCombs Ford was not signed and deemed non-responsive. The estimated total cost of the proposed contracts is $4,283,553.00 over a two year period.
The FY 2020 portion of these contracts is valued at $783,369.00 to replace 28 trucks for Convention and Sports Facilities, Fire, Parks and Recreation, Police, Public Works and Solid Waste Management departments. The FY 2021 estimated portion of these contracts is $2,114,369.00 to replace 81 trucks. There are 57 projected truck replacements planned under the one-year renewal period in FY 2022 for an estimated cost of $1,385,815.00. An estimated 166 replacement light duty trucks will be purchased through these contracts for a total anticipated amount of $4,283,553.00.
This equipment will be utilized by all City departments for various transportation needs and/or services throughout the City.
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 upon the appropriation of funds. Pricing will be fixed for the initial model year as awarded by these contracts. 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 initial term of this contract shall be for the period upon award through December 31, 2020. One additional one-year renewal at the City’s option shall also be authorized by this Ordinance.
Items 1 - 7, and 9 - 11: The recommended award is to the lowest responsive bidder, who is also a local business. Therefore, application of the Local Preference Program was not required.
Item 8: This recommended award is in accordance with the Local Preference Program and will result in an additional estimated annual cost to the City of $329.24. Grande Truck Center, the recommended local bidder, submitted a bid of $520,151.00 and is within 3% of Grapevine DCJ, LLC. the lowest non-local bidder, who submitted a bid of $519,821.76.
Item 12: This recommended award is in accordance with the Local Preference Program and will result in an additional estimated annual cost to the City of $2,749.88. Ancira Motor Company, the recommended local bidder, submitted a bid of $449,747.00 and is within 3% of Grapevine DCJ, LLC. the lowest non-local bidder, who submitted a bid of $446,997.12.
Item 13: This recommended award is in accordance with the Local Preference Program and will result in an additional estimated annual cost to the City of $599.76. Ancira Motor Company, the recommended local bidder, submitted a bid of $159,954.00 and is within 3% of Grapevine DCJ, LLC. the lowest non-local bidder, who submitted a bid of $159,354.24.
ISSUE:
These annual contracts will allow for the purchase of an estimated 166 light duty trucks over the contract term. There are 882 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 between 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 Business Program does not apply to good/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 Ancira Motor Company, Grande Truck Center, and Gunn Chevrolet LTD. to provide the City of San Antonio with light duty pick-up trucks for an estimated total contract value of $4,283,553.00 over a two-year period.
These contracts will provide light duty pick-up trucks for all city departments through December 31, 2020, with one additional one-year renewal at the City’s option. Funding is available in the amount of $783,369.00 as part of the FY 2020 Equipment Renewal and Replacement Fund (ERRF) adopted budget. Additional purchases from these contracts would be subject to the appropriation of subsequent annual funding.
RECOMMENDATION:
Staff recommends the approval of three annual contracts to purchase Light Duty Pick-Up Trucks from Ancira Motor Company for an estimated cost of $2,823,259.00; Grande Truck Center for an estimated cost of $854,483.00; and Gunn Chevrolet LTD. for an estimated cost of $605,811.00 for an estimated total amount of $4,283,553.00 over a two year period.
These contracts are procured on the basis of low bid and a Contracts Disclosure Form is not required.