REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Interim Director
Department of Transportation
BY: CAROLINA ILIC, AICP, Assistant Director
Department of Transportation
SHELLE O’BRIEN, Project Manager
Department of Transportation
SUBJECT
Title
Award a requirements contract to Tolar Manufacturing Company, Inc. of Corona, California for two years with three options one-year extensions not-to-exceed $7,050,877, plus annual CPI adjustments, over a five-year maximum contract duration for transit shelters and associated passenger amenities (Bid File No. 12302459)
Body
RECOMMENDATION
Staff recommends Council award a two-year requirements contract, with provisions for three optional one-year extensions, at a maximum amount of 950 contract units not-to-exceed $7,050,877, plus annual CPI adjustments, and pending funding availability, to Tolar Manufacturing Company, Inc. of Corona, California to manufacture and deliver transit shelters with associated passenger amenities.
EXECUTIVE SUMMARY
The Department of Transportation (FAX) is seeking to award a requirements contract for transit shelters and associated amenities to Tolar Manufacturing Company, Inc. The shelters and amenities from this contract will help FAX maintain its existing inventory of amenities as well as expand its offerings throughout the City of Fresno. The proposed contract value describes the theoretical maximum contract value of $7,050,877, which is based on FAX ordering the most expensive amenity multiplied by the maximum number of contract units plus local sales tax, as described further below.
BACKGROUND
FAX has a continual need for amenities at its bus stops. Due to vandalism, traffic accidents at stops, or other ways in which equipment can be damaged or destroyed, FAX must routinely replace existing shelters and amenities, such as benches, lighting, and trash cans. In addition, FAX is continually looking to expand locations for amenities through new improvement projects or requests at stops that either meet or will meet ADA-compliance regulations. This requirements contract will help FAX keep up with its maintenance needs, expansion plans, and unplanned requests as funding allows. This contract will provide for a two-year base contract and three one-year optional extensions.
The funding behind these purchases can vary year to year in unpredictable ways. Order sizes will be tailored to fit the available funds in a given fiscal year. Historically, FAX receives funding from federal programs such as 5307 (Urbanized Area Formula Grants) and 5339 (Bus and Bus Facilities Formula Program), and state programs such as Prop 1B (Goods Movement Emission Reduction Program), Low Carbon Transit Operations Program (LCTOP), and SB1 (Senate Bill 1 - Transportation Investment Bill).
The contract is built based on a requirement to provide minimum and maximum unit quantities that include a mix of shelters, solar fixtures, benches, and trash receptacles. The minimum units will not be less than 190 complete units. The maximum units will not exceed 950 complete units. A minimum contract value of $93,100 was calculated by multiplying the lowest cost item ($490) times the minimum contract units (190). Similarly, a maximum contract value of $7,050,877 was calculated by multiplying the most expensive item ($6,850) times the maximum contract units (950) and adding local sales tax (8.35%).
A Notice Inviting Bids was published in the Business Journal and posted on Planet Bids on June 16, 2023. The specifications were distributed to five building exchanges and twenty prospective bidders. Two sealed bid proposals were received and opened publicly on July 18, 2023. Bids ranged from $555,835.50 to $695,065.25. Tolar Manufacturing Company, Inc. of Corona, California submitted a base bid in the amount of $555,835.50 and was determined to be the lowest responsive and responsible bidder. While the maximum contract value is approximately $7 million, the expected annual average times the five years of potential contract period, including option years, results in an estimated contract value of $2,794,177.50. As this is a requirements contract, orders will be placed as needed over the contract duration, pending funding availability. The City Attorney has reviewed the contract and approved it as to form.
The bids will expire on October 16, 2023. If this contract is not awarded and, all bids are therefore rejected, the project will be rebid resulting in a delay of approximately 120 days.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a “project” for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented as the use of federal funds precludes the use of local preference.
FISCAL IMPACT
This contract award has no impact to the General Fund. FAX will utilize a combination of federal and state funds identified for passenger amenities for purchases made under this contract.
Attachments:
Example of Installed Tolar Amenities
Bid Evaluation
Contract
Price Analysis