SUBJECT
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Consideration to renew service contract number FY24-066 with Lopez Transmission, Laredo, Texas, in an amount up to $150,000.00 to provide automatic transmission repair services for the Fleet Department. This contract establishes a discount percentage on parts and an hourly labor rate for repair services. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. There was no price increase during the last extension period. This contract may be extended for two (2) additional one (1) year periods, each upon mutual agreement of the parties and contingent on future funding appropriations. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 6/10/24.
BACKGROUND
This contract establishes a discount percentage on parts and an hourly labor rate for automatic transmission repairs for the Fleet Department. The vendor shall provide all the labor and parts needed to complete the repairs. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. There was no price increase during the last extension period. This contract may be extended for three, additional one (1) year periods. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
Current Pricing:
Percentage Discount on Parts: 25%
Labor Hourly Rate: $45.00/Hour
A complete bid summary is attached. The summary lists all the types of rates that are included in this service.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
Fiscal Year: 2025.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593-2810-533-2075.
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.