TITLE
Recommendation to adopt Specifications No. PA-01011 and award contracts to Scher Tire, Inc. (SBE and Local), and Sudduth Tire Co., Inc. (SBE, WBE, and Local), for furnishing and delivering tires and service, in an amount not to exceed $370,000, for a period of one year, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is being requested to enter into annual Citywide contracts with Scher Tire, Inc. and Sudduth Tire Co., Inc., for furnishing and delivering tires and service to support the Department of Public Works, Fleet Services Bureau, Water Department and Harbor Department tire maintenance program. The tire maintenance program consists of new tires and tire-related accessories for small, medium, heavy-duty and specialty vehicles, and safety tires for police and fire. These contracts will support over 2,100 vehicles Citywide.
The bid was advertised in the Press-Telegram on March 18, 2011 and 30 potential bidders specializing in tires and service were notified of the bid opportunity. Of those bidders, nine downloaded the bid via our 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 <http://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 30 local, minority, and women's business groups. Four bids were received on April 14, 2011. Of those four bidders, none were Minority-owned Business Enterprises (MBEs), one was a Women-owned Business Enterprise (WBE), three were certified Small Business Enterprises (SBEs), and two were Long Beach Businesses (Local). Scher Tire, Inc., and Sudduth Tire Co., Inc., of Long Beach, CA (SBE, WBE, and Local), are the lowest responsible bidders.
Local Business Outreach
Our outreach goal is to encourage Long Beach businesses to participate in City procurement processes and submit proposals for City contracts. We assist businesses with registering on our Bids Online database to download the bid specifications. Eight Long Beach vendors were contacted to offer local outreach, of which two downloaded and 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 Amy R. Burton on August 17, 2011 and Budget Management Officer Victoria Bell on August 24, 2011.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-01011 and award contracts is requested on September 20, 2011 to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The combined cost of these contracts is $370,000 annually. Of that amount, $300,000 is budgeted in the Fleet Services Fund (IS 386) in the Department of Public Works (PW); $55,000 in the Water Fund (EF 310) in the Long Beach Water Department (WA); and $15,000 in the Harbor Fund (HA 430) in the Harbor Department. The award of these contracts will provide continued support to our local economy by assisting in the preservation of five full-time employees residing in Long Beach with employment.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER