SUBJECT
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Consideration to renew annual supply contract FY24-099 for the purchase of truck tires with the following vendors:
A. Section I - Southern Tire Mart, LLC, Laredo, Texas in an amount up to $700,000.00;
B. Section I - A6 Scientific Corp, Houston, Texas in an amount up to $150,000.00;
C. Section II - Southern Tire Mart, LLC, Laredo, Texas in an amount up to $250,000.00;
D. Section II - Goodyear Tire & Rubber Company in an amount up to $125,000.00.
All tires will be purchased 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. Goodyear Tire & Rubber Company is proposing a price increase due to an increase of 2.6% to the base price with tires discounted at same price. This contract can be renewed two additional one-year periods, upon mutual agreement. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 9/16/24.
BACKGROUND
This contract establishes pricing for the purchase of truck tires for the city’s trucks. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. Goodyear Tire & Rubber Company is proposing a price increase due to an increase of 2.6% to the base price with tires discounted at same price. This is the first of three one-year extension periods. This contract shall 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: 2025.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management 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.