SUBJECT
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Consideration to renew annual contracts FY25-089 for the general diesel engine repairs and parts/service for the City’s Fleet Department with the following vendors:
1. Cervantes Truck Center, Laredo, Texas in an annual amount up to $600,000.00 and $1,200,000.00 for the remainder of the contract term;
2. Rotex Truck Center, Laredo, Texas in an annual amount up to $250,000.00 and $500,000.00 for the remainder of the contract term;
3. South Texas Auto Rebuilders, Laredo, Texas in an annual amount up to $250,000.00 and $500,000.00 for the remainder of the contract term;
4. Rush Truck Center, Laredo, Texas in an annual amount up to $250,000.00 and $500,000.00 for the remainder of the contract term;
5. J&P Mobile Mechanics, Laredo, Texas in an annual amount up to $50,000.00 and $100,000.00 for the remainder of the contract term;
6. Andy’s Auto Air & Supplies, Laredo, Texas in an annual amount up to $50,000.00 and $100,000.00 for the remainder of the contract term.
This contract establishes multiple vendors for general diesel engine repairs and provides the ability to outsource and expedite needed diesel engine repairs. 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 and compliance city code of ordinances. There was no price increase during the last extension period. This contract can be renewed two additional one-year extension periods, upon mutual agreement of the parties. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 10/20/25.
BACKGROUND
This contract establishes an hourly labor rate for service repairs and a percentage discount on original equipment manufacturer parts for diesel repairs on the city's heavy-duty trucks. This is the first of three one-year extension periods. There was no price increase during the last extension period. The term of this contract shall be for a period of one year beginning as of the date of its execution. This contract will be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
A complete bid tabulation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that these contracts be renewed.
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Fiscal Impact
Fiscal Year: 2026.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593-2815-533-2080 and 593-2825-533-2080
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.