SUBJECT
title
Consideration to renew a one-year service contract FY22-001 to the following vendors:
1.) Lozano’s Body Shop Repairs Laredo, Texas (Primary Vendor);
2.) South TX Auto Rebuilders Laredo, Texas (Secondary Vendor).
Section Description Dollar Amt/Year
I Car Repair Services
II Light Duty Truck Repair
Services
III Medium Duty Truck Repair IV
IV Heavy Duty Truck Repair
Services
Total $350,000.00
for auto & truck body shop repairs for the Fleet Department for $350,000.00 annually.
This contract establishes Primary/Secondary service providers with hourly service
rates and a percentage markup on parts utilized during city vehicle repairs. All repair
services 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. There was no price increase during the
last extension period. This contract can be renewed for one additional one year
extension period, upon the mutual agreement of the parties. Funding is available in
the Fleet Management Fund.
Services
body
PREVIOUS COUNCIL ACTION
Approved a one-year contract on 10/2/2023.
BACKGROUND
This contract establishes an hourly service rate and a percentage markup on
automotive parts utilized during vehicle repairs. Lozano's Body Shop Repairs and
South TX Auto Rebuilders will be contacted on repair services over $5,000.00 in order
to secure the best bid contract pricing for the City. Estimated time for completion of
any vehicle repairs by both vendors is six working days. Awarded vendors shall
provide monthly invoice reconciliation reports to Risk Management. There was no
price increase during the last extension period. This is the second of three extension
periods.
The term of this contract shall be for a period of one year beginning as of the date
of its execution. The contract may be extended for one, additional one-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 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 & 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 extensions shall be in writing, signed by the City's Purchasing Manager & 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 will be the
responsibility of and administered by the vendor and the City of Laredo Fleet
Department.
Pricing under contract:
Lozano Body Shop Section I Section II
Hourly Flat Labor Rate $25.00 per Hour $25.00 per Hour
Parts Percentage (%) Price
Mark-up 15% 15%
Cost of pick/up delivery No Charge No Charge
Storage fees per day No Charge No Charge
Warranty offered on repairs 1 Year 1 Year
Warranty offered on paint 1 Year 1 Year
South Texas Auto Section III Section IV
Rebuilders
Hourly Flat Labor Rate $40.00 per Hour $50.00 per Hour
Parts Percentage (%) Price
Mark-up 25% 25%
Cost of pick/up delivery $125.00 N/A
Storage fees per day No Charge No Charge
Warranty offered on repairs 1 Year/12,000 1 Year/12,000
Miles Miles
Warranty offered on paint Limited Lifetime Limited Lifetime
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that these contracts be renewed.
end
Fiscal Impact
Fiscal Year: 2024.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593 2810 533 2071
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
All parts will be purchased on an as need basis. 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.