SUBJECT
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Consideration to renew contract FY22-002 for the purchase of recapped tires for the city’s fleet vehicles with Southern Tire Mart, Laredo, Texas, in an amount up to $250,000.00. 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 may be extended for one additional one-year period upon mutual agreement of the parties. There was no price increase during the last extension period. All recapped tires will be purchased on an as-needed basis. Funding is available in the Fleet Maintenance Fund.
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PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
This contract establishes pricing for the purchase 11R22.5 recapped tires for city vehicles. All recapped tires will be secured on an as-needed basis. There was no rpice increase during the last extension period. This is the second of three extension periods. Southern Tire Mart will deliver from their local store.
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 additional one (1) year period. Should the vendor desire to extend the contract for the additional one-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 and 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 extension shall be in writing, signed by the City’s Purchasing Manager and 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 contract expiration date. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
Pricing Summary:
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|
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Current Pricing |
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Description |
Quantity |
Unit Price |
|
11R22.5-27-32 Thread Depth Recapped Tire |
900 |
$179.00 |
|
Spot Repairs |
1 |
No Charge |
|
120 Repairs |
1 |
$5.00 |
|
124 Repairs |
1 |
$9.00 |
|
140 Repairs |
1 |
$11.00 |
|
Nail Hole Repairs |
1 |
$3.00 |
|
BuyBack Payment Price for old tire casting (Paid to the City) other than 11R22.5 |
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$60.00 |
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Delivery after receipt of order |
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1 to 3 Working Days |
COMMITTEE RECOMMENDATION
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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
Account #: 59328105332072
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
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.