TITLE
Recommendation to adopt Specifications No. ITB FS20-039 and award a contract to Courtesy Chevrolet Center, LLC, of San Diego, CA, for furnishing and delivering two Chevrolet Silverado 2500HD trucks, for a total contract amount not to exceed $372,327, inclusive of taxes and fees; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Courtesy Chevrolet Center, LLC, for the purchase of two Chevrolet Silverado 2500HD trucks, for a total contract amount not to exceed $372,327, inclusive of taxes and fees. The trucks will be used by the Fire Suppression Bureau in the Fire Department. Purchase of these vehicles was approved by the City Manager in the FY 19 Fleet Replacement Plan.
The current vehicles are five years past their useful life, requiring the need for replacement vehicles. The replacement vehicles will be outfitted with all communications, lighting, power back up, and demand loads needed by the Fire Department. The vehicles will be used by Battalion Command staff for oversight of fire response operations.
The bid was advertised in the Long Beach Press-Telegram on May 15, 2020, and 60 potential bidders specializing in heavy duty vehicles were notified of the bid opportunity. Of those bidders, nine downloaded the bid via the City's electronic bid system. The bid document was made available from the Purchasing Division, located on the 6th floor of
City Hall, and the Division's website at www.lonqeach.dovipurchasinct. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 35 local, minority-owned and women-owned business groups. Three bids were received on June 9, 2020. Of those bidders, one was a Minority-owned Business Enterprise (MBE), and none were Woman-owned Business Enterprises (WBEs), certified Small Business Enterprises (SBEs), or Long Beach businesses (Local). Courtesy Chevrolet Center, LLC, of San Diego, CA (not a MBE, WBE, SBE, or Local), was the lowest responsive bidder.
Local Business Outreach
In an effort to align with the City's outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, four Long Beach vendors were notified to submit bids, of which none downloaded or submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on July 28, 2020 and by Deputy Financial Director Sandy Tsang-Palmer on July 27, 2020. Due to time constraints, no Budget Office review was able to be conducted.
SUSTAINABILITY
These new trucks are compliant with the State of California and local district air quality regulations.
TIMING CONSIDERATIONS
City Council action is requested on August 18, 2020, to ensure a contract is in place expeditiously.
FISCAL IMPACT
The total cost of the contract will not exceed $372,327, inclusive of taxes and fees, and is budgeted in the Fleet Services Fund Group in the Financial Management Department. Ongoing maintenance costs are estimated at $6,428 annually and capital replacement charges based on an asset life of seven years are estimated at $65,416 annually. These costs will be collected through the Fleet Services Memorandum of Understanding (MOU) regular monthly charges to the General Fund Group in the Fire Department starting when the vehicles are delivered and in use. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER