REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MIGUEL RAMIREZ, Senior Management Analyst
General Services Department
SUBJECT
Title
Actions pertaining to the award of three purchase contracts to Swanson Fahrney Ford, of Selma, California, for the purchase of a total of 81 Ford vehicles for various departments in the total aggregate amount of $4,421,353:
1. Award a purchase contract for 30 Ford Super Duty trucks in the amount of $1,770,747 (Bid file 12401037).
2. Award a purchase contract for 33 Ford Super Duty trucks in the amount of $1,844,457 (Bid File 12401132).
3. Award a purchase contract for 18 Ford vehicles in the amount of $806,149 (Bid File 12401313).
Body
RECOMMENDATION
Staff recommends Council award three purchase contracts to Swanson Fahrney Ford, of Selma, California, for the purchase of a total of 81 Ford vehicles for various departments in the total aggregate amount of $4,421,353:
1. Award a purchase contract for 30 Ford Super Duty trucks in the amount of $1,770,747 (Bid file 12401037).
2. Award a purchase contract for 33 Ford Super Duty trucks in the amount of $1,844,457 (Bid File 12401132).
3. Award a purchase contract for 18 Ford vehicles in the amount of $806,149 (Bid File 12401313).
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU), Department of Public Works (DPW), Airports Department (FYI), Fire Department (FFD), Police Department (FPD), Planning and Development (P&D), General Services Department (GSD), and Animal Center are requesting approval to purchase 81 Ford vehicles to replace and grow their respective fleets. Due to global supply chain constraints the automotive industry has faced a shortage of raw materials which has created massive under production in many vehicle types. This resulted in a lack of availability causing FY2023 projects to not get completed within the typical 12-month period. As a result, 45 of the 81 vehicles are FY2023 acquisitions and the remaining 36 vehicles are from FY2024.
Due to manufacturer-imposed vehicle allocation constraints and low dealership inventory levels, GSD determined three separate solicitations were appropriate to increase competition and the chances of successful bids. This is a direct result of the ongoing global supply chain constraints resulting in zero bids received for Ford vehicles in FY2023. The Fleet Management Division and Purchasing Division contacted dealerships located within the City of Fresno limits to gain interest, however no City of Fresno dealerships submitted a bid.
GSD, Fleet Management Division, has specified the maximum number of hybrid and zero emission vehicles based upon the vehicle needs of the various departments, this totals seven Ford Maverick hybrids and two Ford electric F-150 Lightnings.
BACKGROUND
In an effort to encourage participation and receive competitive bids, the General Services Department, Fleet Management Division solicited three separate Ford vehicle bids. This provided dealerships the opportunity to submit pricing based on their specific capabilities. The strategy has yielded an agreement that is within budget and has saved administrative resources through multiple departments. DPU, DPW, FYI, FFD, FPD, P&D, GSD, and Animal Center will utilize this contract to purchase both replacement and additional vehicles to meet the needs of their operations.
Of the 81 total vehicles, DPU is requesting 26 vehicles, DPW is requesting 35 vehicles, FYI is requesting four vehicles, FFD is requesting five vehicles, FPD is requesting two vehicles, P&D is requesting two vehicles, GSD is requesting one vehicle, and Animal Center is requesting six vehicles. Of the requested units, 47 will serve as replacements and 34 will be additions used to meet the needs of growing staff and projects.
DPU provides service to the residents of Fresno through water delivery, collection of solid waste, and the treatment of wastewater. Each division utilizes vehicles to perform inspections, repair and maintain service systems, and travel to jobsites. DPU is requesting 26 vehicles: three F-150’s, two Maverick hybrids, two F-250’s, 13 F-350’s, two F-550’s, and four vans to haul small tools, transport personnel, and move equipment for their expanding teams. Of the requested units, 25 will serve as replacements and one will be used to meet the needs of growing staff and projects.
DPW provides service to the residents of Fresno through the construction and maintenance of roads, streetlights, city owned buildings, and adjacent landscaping throughout the city. To accomplish this, each division utilizes service trucks, vans, and half-ton pickup trucks to meet their daily needs. DPW is requesting 35 vehicles: 29 F-350’s, four F-450’s, and two F-550’s to haul small tools, transport personnel to jobsites, and move equipment as needed. Of the requested units, 10 will serve as replacements and 25 will be used to meet the needs of growing staff and projects.
FYI provides service to the residents of Fresno through the continuous operation and maintenance of airport properties. FYI is requesting two electric F-150 Lightning and two F-250’s to haul small tools, transport personnel, and move equipment during their daily operations. Of the requested units, two will serve as replacements and two will be used to meet the needs of growing staff and projects.
FFD, established in 1877, is one of the oldest fire departments in the United States, and the largest department in the Central Valley. The department operates 21 fire stations and responds to emergency calls with fully staffed fire engines and support vehicles. FFD is requesting one Maverick and four F-350’s, these units will be utilized as emergency response and for operations staff. Of the requested units, four will serve as replacements and one will be used to meet the needs of growing staff.
FPD is responsible for daily policing operations within the City of Fresno. The overall goal of the Police Department is to maintain the highest level of service while keeping our community safe. To accomplish this goal FPD is requesting one F-250 to be utilized by the Crash Reconstruction Unit and one van to transport evidence and property. One vehicle will serve as a replacement and the other will be used to meet the needs of growing staff and provide reliable transportation for FPD officers.
P&D focuses on both public and private property development throughout the City as well as the sustainable management of our land, water resources, and public infrastructure. Service is provided to the residents of Fresno through the enforcement of the Fresno Municipal Code. P&D is requesting two Mavericks that will serve as replacements. The new vehicles will be used to transport personnel and haul various equipment needed to perform onsite inspections.
GSD provides services to City of Fresno Departments through support services such as Fleet Management, Facilities Management, and Purchasing. To accomplish this, the divisions utilize vans and service trucks to repair and maintain City owned assets. GSD is requesting one van to haul small tools and transport personnel to jobsites. The requested unit will serve as a replacement for a vehicle past its useful life.
The City’s Animal Center provides animal services, resources, and assistance to City of Fresno residents and their pets. To accomplish this goal the Animal Center is requesting two Mavericks, one F-250, and three F-350’s. The new vehicles will be utilized for support and transporting animals.
The Fleet Management Division has specified the maximum number of hybrid and zero emission vehicles based upon the vehicle needs of the various departments, this totals seven Ford Maverick hybrids and two Ford electric F-150 Lightnings.
The light equipment class of vehicles is on a ten year or 100,000-mile replacement schedule which has been established by the Fleet Management Division as the optimum replacement time. The units identified for replacement have exceeded their useful life in both time and mileage, therefore the Fleet Management Division recommends replacement.
Due to manufacturer-imposed vehicle allocation constraints and low dealership inventory levels, GSD determined three separate solicitations were appropriate to increase competition and the chances of successful bids. This is a direct result of the ongoing global supply chain constraints resulting in zero bids received in FY2023.
Competitive bids were solicited for 34 Ford Super Duty trucks (Bid File 12401037) on October 04, 2023 and advertised in the Fresno Business Journal. After bids were received, the bid quantities were adjusted resulting in a net decrease of four vehicles. The adjusted vehicle total recommended for purchase is 30. The Notice Inviting Bids was sent to two exchanges and specifications were distributed to nine potential bidders. The Fleet Management Division and Purchasing Division contacted dealerships located within the City of Fresno limits to gain interest, however no City of Fresno dealerships submitted a bid. One bid was received and reviewed on October 13, 2023. Swanson Fahrney Ford was determined to be the lowest responsive and responsible bidder with a total bid price of $1,770,747.
Competitive bids were solicited for 33 additional Ford Super Duty trucks (Bid File 12401132) on October 13, 2023, and advertised in the Fresno Business Journal. The Notice Inviting Bids was sent to three exchanges and specifications were distributed to six potential bidders. The Fleet Management Division and Purchasing Division contacted dealerships located within the City of Fresno limits to gain interest, however no City of Fresno dealerships submitted a bid. One bid was received and reviewed on October 23, 2023. Swanson Fahrney Ford was determined to be the lowest responsive and responsible bidder with a total bid price of $1,844,457.
Competitive bids were solicited for 20 Ford vehicles (Bid File12401313) on October 23, 2023, and advertised in the Fresno Business Journal. After bids were received, the bid quantities were adjusted resulting in a net decrease of two vehicles. The adjusted vehicle total recommended for purchase is 18. The Notice Inviting Bids was sent to two exchanges and specifications were distributed to six potential bidders. The Fleet Management Division and Purchasing Division contacted dealerships located within the City of Fresno limits to gain interest, however no City of Fresno dealerships submitted a bid. One bid was received and reviewed on October 31, 2023. Swanson Fahrney Ford was determined to be the lowest responsive and responsible bidder with a total bid price of $806,149.
The three bids combined total $4,421,353 and includes local sales tax at 8.35 percent. The Purchasing Division has approved this contract and recommends Council to approve.
The City Attorney’s Office has reviewed and approved 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 Swanson Fahrney Ford, of Selma, CA is a local business pursuant to FMC 4-108.
FISCAL IMPACT
The funding to cover the purchase cost of 81 Ford vehicles has been included in the FY 2023 and FY2024 Adopted Budget under the operations of DPU, DPW, FYI, FFD, FPD, P&D, GSD, and Animal Center. Due to global supply chain constraints the automotive industry has faced a shortage of raw materials which has created massive under production in many vehicle types. This resulted in a lack of availability causing projects to not get completed within the typical 12-month period. Therefore, the funding for 45 of these Ford vehicles was not spent in FY2023 and if approved, the FY2023 funds will be re-appropriated to FY2024 to complete these acquisitions.
Of the 81 units, nine vehicles will be lease financed and paid for over a five-year term, this includes five for FFD, two for FPD, and two for P&D. The lease payment schedule is included in the annual budget request for appropriations. The balance of vehicles will be an outright purchase. A list of funding sources with unit quantities and total budgeted dollars is provided in Exhibit A.
Attachments:
Signed Bid Evaluation 12401037
Signed Bid Evaluation 12401132
Signed Bid Evaluation 12401313
Exhibit A Funding Sources