REPORT TO THE CITY COUNCIL
March 22, 2018
FROM: JIM SCHAAD, Director
Department of Transportation
BY: DUANE MYERS, Fleet Manager
Department of Transportation/Municipal Fleet Division
SUBJECT
Title
Reject all bids for motor oil and lubricants requirements contract - Bid File No. 9411
Body
RECOMMENDATION
Staff recommends Council reject all bids received December 19, 2017, for the oil and lubricants requirements contract.
EXECUTIVE SUMMARY
After evaluation of all bids, it was determined the quantities listed in the current solicitation and the complex format of the cost proposal form may have limited competition, particularly among smaller local suppliers. It is staff's intent to revise the solicitation, including the cost proposal forms, in order to increase the level of participation and competion.
BACKGROUND
The Municipal Fleet Division solicited bids on November 22, 2017, for an oil and lubricants requirements contract. The division is responsible for purchasing and maintaining approximately 2,100 vehicles owned and operated by City departments. These include Department of Public Utilities, Department of Public Works, PARCS, and others. Departments utilize a wide range of vehicles such as refuse trucks, street sweepers, sedans, and pickup trucks. Annually, the Municipal Fleet Division performs 3,900 preventive maintenance jobs; 22,000 repairs; and maintains 94 percent vehicle availability.
The Municipal Fleet Division is in need of a contract for the purchase of oil and lubricants for the City fleet. Establishing a competitively bid contract for the complete range of oil and lubricants is necessary in order to keep prices low and allow for consistent budgeting.
Competitive bids were solicited for oil and lubricants on November 22, 2017, and five bids were received on December 19, 2017. During the bid evaluation, it was determined that the specifications reflected product quantities that would be needed over a three-year period, altho...
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