Contract Renewal
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Consideration to renew annual parts/labor contract FY21-038 (Outside Trailer Repair Contract) with Laredo Mechanical Industry, Laredo, in amount of $50,000.00 for small and medium size trailers. All trailer repairs will be done at the vendor's shop and will be secured on an as needed basis. Tims South Texas (secondary vendor) has decided not to renew their portion of this contract citing an increase in labor costs. 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. There was no price increase during the last extension period. This is the last extension period for this contract. Funding is available in the Fleet Maintenance Budget.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 3/20/23.
BACKGROUND
This contract establishes parts/labor pricing for trailer repair services for the Fleet Department. Laredo Mechanical Industry is currently the Primary Vendor. Tims South Texas, (secondary vendor) for this contract) has decided not to renew their portion of this contract citing an increase in labor costs. There was no price increase during the last extension period. This is the last extension period for this contract. All trailer repairs shall be done at the local vendors shop. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
A Current Pricing Table is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Maintenance Budget 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.