TITLE
Recommendation to adopt Specification No. ITB FS19-091 and award a contract to Southern California Materials Handling, Inc., of Whittier, CA, for the purchase of four Mitsubishi forklifts, in an amount not to exceed $223,936, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with South California Material Handling, Inc., for the purchase of four Mitsubishi 3-stage forklifts. The current forklifts have exceeded their lifecycle and, due to their age and condition, are experiencing significant downtime and repair costs. The purchase of new equipment was approved in the FY 19 vehicle replacement plan. The new units are for the Long Beach Airport, Public Works, and the Parks, Recreation and Marine Departments.
The bid was advertised in the Long Beach Press-Telegram on April 29, 2019, and 29 potential bidders specializing in automotive products and services were notified of the bid opportunity. Of those bidders, 10 downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 28 local, minority, and women-owned business groups. Four proposals were received on May 9, 2019. Of those bidders, none were Minority-owned Business Enterprises (MBEs), one was a Disadvantaged Business Enterprise (DBE), none were Women-owned Business Enterprises (WBEs), two were Small Business Enterprises (SBEs), and none were Long Beach businesses (Local).
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids online database to download the bid specifications. Through outreach, four Long Beach vendors were notified to submit proposals, of which none downloaded nor submitted a proposal. 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 June 28, 2019, Purchasing Agent Tara Yeats on June 20, 2019, and by Budget Analysis Officer Julissa José-Murray on June 17, 2019.
SUSTAINABILITY
The forklifts are fueled with clean-burning propane gas and are in full compliance with the California Air Resources Board criteria for engine emissions.
TIMING CONSIDERATIONS
City Council action to adopt Specification No. ITB FS19-091 and award a contract concurrently is requested on July 2, 2019, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total cost of the contract for four Mitsubishi forklifts will not exceed $223,936, inclusive of taxes and fees. Sufficient appropriation is budgeted in the Fleet Fund Group in the Financial Management Department. Funds for equipment replacement are collected through Fleet’s Services Memorandum of Understanding (MOU) monthly billing process to fleet vehicle and equipment user departments. 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.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER