REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: DUANE MYERS, Fleet Manager
General Services Department, Fleet Management Division
SUBJECT
Title
Approve the award of a Requirements Contract for retreading of commercial truck tires to Delray Tire and Retreading of Fresno, California for two years with three one-year optional extensions in the amount of $381,551.00, plus annual CPI adjustments. (Bid File 9659)
Body
RECOMMENDATION
Staff recommends Council approve the award of a Requirements Contract for retreading of commercial truck tires to Delray Tire and Retreading of Fresno, California for two years with three one-year optional extensions in the amount of $381,551.00, plus annual CPI adjustments.
EXECUTIVE SUMMARY
On March 9, 2023, Council awarded a Requirements Contract to The Goodyear Tire & Rubber Company for the retreading of commercial truck tires. However, The Goodyear Tire & Rubber Company would not agree to various requirements of the contract (i.e., insurance requirements), has declined the award, and has withdrawn their bid. Therefore, the General Services Department is seeking Council approval of the next lowest responsive and responsible bidder to fulfill these requirements.
The General Services Department, Fleet Management Division, maintains the City of Fresno municipal fleet of approximately 2,500 vehicles and equipment. This contract will supply retreaded commercial truck tires as needed for the next two years with the possibility for three one-year extensions. Retreading commercial truck tires are used tires for medium and heavy-duty vehicles which receive a new tread. The worn tread is buffed away, and a new tread is bonded to the casing similar to how a new tire is manufactured. Retread tires are the preferred method to replacing worn tires as they are safe, reliable, and cost less than new tires. Last year, the Fleet Management Division purchased over 1,000 retread tires, ranging from $185 to $240 each. Whereas new tires range in cost from $600 to $700 each.
BACKGROUND
The General Services Department, Fleet Management Division is responsible for purchasing and maintaining tires for the City’s fleet of vehicles. A combination of new and retread commercial tires are utilized for maintenance and repair.
Retread commercial truck tires are used tires (i.e., casings) for medium and heavy-duty vehicles which receive a new tread. The casings are first inspected to ensure they are in suitable condition, then worn tread is buffed away. A new tread is bonded to the casing in a manner similar to how a new tire is made. Tire retreading practices have improved to the point where retread tires perform similar to new tires. Retread tires are the preferred method to replacing worn tires as they are safe, reliable, and cost less than new tires. Moreover, Federal Executive Order 13149 mandates the use of retreads on government vehicles whenever possible.
Last year, the Fleet Management Division purchased over 1,000 retread tires, ranging from $185 to $240 each. Whereas new tires range in cost from $600 to $700 each. Establishing a competitively bid multi-year contract for the retread tires will keep prices stable and allow for consistent budgeting for the term of the contract.
Competitive bids were solicited for retreading of commercial truck tires on July 18, 2022; three bids were received on August 9, 2022. On March 9, 2023 Council awarded the contract to The Goodyear Tire & Rubber Co. However, The Goodyear Tire & Rubber Co. would not agree to various requirements of the contract (i.e., insurance requirements), has declined the award, and has withdrawn their bid. Delray Tire and Retreading has now been determined to be the lowest responsive and responsible bidder with a bid price of $331,551. The General Services Department is recommending a $50,000 contingency be included in the award to account for the expected growth in the municipal fleet and account for annual variations in tire replacements. Therefore, the General Services Department recommends a total annual award value of $381,551. The Purchasing Division has approved this contract and recommends Council approve. Bids will expire on September 8, 2023.
The City Attorney has approved the contract as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference is applicable to this award and Delray Tire and Retreading is a local business pursuant to FMC 4-108; however, local preference was not implemented because the lowest responsive bidder is a local business.
FISCAL IMPACT
No general funds will be used to purchase these items. The funding to cover the annual purchase cost of retreading of commercial truck tires has been included in the FY2024 adopted budget under the operations of the General Services Department, Fleet Management Division.
Attachments:
Bid Evaluation