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Recommendation to adopt Specifications No. PA-02807 and award a contract to Carmenita Ford Truck Sales, Inc., for two crew trucks with custom beds in the amount of $332,443 including tax, plus the option to purchase two additional units, and a 10 percent contingency if necessary and if funds are available, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Carmenita Ford Truck Sales, Inc. for the purchase of two crew trucks with custom beds. The cost per truck is $166,221 including tax.
The Department of Gas and Oil, Engineering and Construction Bureau, has an immediate need to purchase two line construction crew trucks consistent with the FY 08 replacement plan. The Department of Gas and Oil currently utilizes four line construction trucks that are 26 years old with a scheduled life cycle of 15 years. The decision to purchase only two units, with the option to purchase two additional units has been made at this time because the department is considering downsizing the remaining two trucks to better suit their needs.
These line construction trucks will be diesel fueled at the request of the Department of Gas and Oil. The Department of Gas and Oil participates in a mutual aid agreement to provide support to similar agencies in the event of an emergency. The locales for these agencies range from Fresno to San Diego. Based on these locations and the lack of alternative fueling stations within these regions, alternative fuel solutions would prove ineffective and impede the delivery of mutual aid. In accordance with the Air Quality Management District (AQMD) and the mutual aid agreement guidelines, the City of Long Beach has applied for an exemption request to purchase these two diesel-fueled trucks. Agencies that participate in these types of mutual aid agreements are required to submit an exemption with the AQMD to ensure compliance.
The bid was advertised on November 1,2007, and 27 potential bidders were notified of the bid opportunity; three are Minority-owned Business Enterprises (MBEs), one is a Womenowned Business Enterprise (WBE), four are Long Beach businesses, and one is a certified Small Business Enterprise (SBE). The bid document was made available from the Purchasing Division, located on the Plaza Level of City Hall, and the Division's website at www.longbeach.qov/purchasinq. A bid announcement was also included in the Purchasing
Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. Bids were opened on November 28, 2007. Carmenita Ford Trucks Sales, Inc., of Santa Fe Springs, CA (not a MBE, WBE, local or SBE), is the lowest responsible bidder.
This item was reviewed by Deputy City Attorney Amy Burton on February 1, 2008 and Budget Management Officer Victoria Bell on February 8, 2008.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-02807 and award a contract concurrently is requested on February 19, 2008 to ensure that a new contract is in place expeditiously to meet manufacturer production cut-off points and minimize delivery turnaround time.
FISCAL IMPACT
The cost of this contract is estimated to be $332,443 including tax. Funding for the crew trucks is budgeted in the Fleet Services Fund (IS 386) in the Department of Public Works (PW). The City will have the option of purchasing two additional units at the contracted price, and adding expenditures up to 10 percent (or $33,244) above the contract amount.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
Michael P. Conway
Director of Public Works
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |