SUBJECT
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Consideration to award annual contract FY24-099 for the purchase of truck tires with the following bidders:
A. Section I - Southern Tire Mart, LLC, Laredo, Texas in an amount up to $700,000.00 (Primary Vendor);
B. Section I - A6 Scientific Corp, Houston, Texas in an amount up to $150,000.00 (Secondary Vendor);
C. Section II - Southern Tire Mart, LLC, Laredo, Texas in an amount up to $250,000.00 (Primary Vendor);
D. Section II - Goodyear Tire & Rubber Company in an amount up to $125,000.00 (Secondary Vendor).
All tires will be secured on an as needed basis. The term of this contract shall be for a period of one year beginning as of the date of its execution and is contingent upon the availability of appropriated funds. This contract can be renewed three additional one year periods, upon mutual agreement. Funding is available in the Fleet Maintenance Fund.
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PREVIOUS COUNCIL ACTION
None.
BACKGROUND
The City of Laredo went out on formal Invitations for Bids and received five (5) bids through Cit-E-Bid for awarding a contract for the purchase of truck tires for the Fleet Department. In evaluating each tire, staff evaluated the tread of each tire and its recommending that Option I be awarded to Southern Tire Mart (Primary Vendor) and A6 Scientific Corp (Secondary Vendor). Option II be awarded to Southern Tire Mart (Primary Vendor) and Goodyear Tire & Rubber Company (Secondary Vendor). All delivery of tires will be made through local dealers.
The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. The contract may be extended for three, additional one (1) year periods. Should the vendor desire to extend the contract for additional on year period, it must so notify the City in writing no later than sixty (60) days before the expiration of the prior term. Such notification shall be effective upon actual receipt by the City. Renewals shall be in writing and signed by the City’s Purchasing Manager & City Manager or his designee, without further action by the Laredo City Council, subject to and contingent upon appropriation of funding therefore. All annual contracts shall bound by the terms of the bid documents. The City shall also have the right to extend this contract under the same terms and conditions beyond the original term or any renewal thereof, on a month to month basis, not to exceed 3 months. Said month to month extensions shall be in writing, signed by the City’s Purchasing Manger & City Manager or his designee, and shall not require City Council approval, subject to and contingent upon appropriation of funding therefore. The City reserves the right to renew or rebid this contract, if the appropriated funds initially approved by City Council are exhausted before the contact expiration date.
Pricing Summary:
Option I - Truck Tires Total Section I Cost
Southern Tire Mart $587,426.80 (Primary Vendor)
A6 Scientific Corp. $785,399.90 (Secondary Vendor)
Gonzalez Auto Parts $790,536.60
Toro Automotive $790,536.60
Goodyear Tire & Rubber Comp. No Bid
Option II - Truck Tires Total Section II Cost
Southern Tire Mart $504,250.90 (Primary Vendor)
Goodyear Tire & Rubber Comp. $509,554.50 (Secondary Vendor)
A6 Scientific Corp. $576,492.60
Gonzalez Auto Parts $790,536.60
Toro Automotive $790,536.60
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended these contracts be approved.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Maintenance Fund.
Account #: 593-2810-533-2072.
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed, should the city need to purchase these commodities or services. The City’s obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.