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REJECT BID FOR PURCHASE OF SIX ONE-TON SERVICE BODY PICKUP TRUCKS (PUR 15-031)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion rejecting the single bid that was received for the purchase of six one-ton service body pickup trucks (PUR 15-031).
It is further recommended that the motion authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On March 10, 2016, the City requested bids for the purchase of six one-ton service body pickup trucks. On March 31, 2016, the City received one bid from Chase Chevrolet of Stockton, California (Attachment A). This bid price is over 18 percent higher than the 2015 low bid price for a similar type of truck. Other vendors reported that manufacturer pricing was not yet available when bids were due and thus they could not submit. If this bid is rejected, the Fleet staff will conduct a new solicitation for bids this summer expecting increased competition. It is recommended that the bid be rejected.
DISCUSSION
Background
The fiscal year 2015-16 Municipal Utilities Department budget includes funding to replace six one-ton service body pickup trucks currently in use. The six units to be replaced are operational, but are beyond their service life.
Public Works Fleet staff prepared vehicle specifications and utilized the formal, competitive bid process to obtain bids for this purchase. The specification was generic and designed such that any of the major pickup truck manufacturers could bid.
Present Situation
The Notice Inviting Bids for the purchase of six one-ton service body pickup trucks was published in The Record on Thursday, Friday and Saturday, March 10th, 11th, and 12th 2016, respectively. On that same weekend, the Notice was sent to nineteen vendors, including Big Valley Ford, Chase Chevrolet, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,571 recipients.
On March 31, 2016, the only bid received was from Chase Chevrolet of Stockton. The bid result was as follows:
|
Unit Price (each/total) |
$46,236.00 |
$277,416.00 |
|
|
|
|
|
DMV Document Fee |
$80.00 |
$480.00 |
|
9% Sales Tax |
$4,168.44 |
$25,010.64 |
|
CA Tire Fee |
$8.75 |
$52.50 |
|
Total Purchase Price |
$50,493.19 per unit |
$302,959.14 six units |
In response to staff inquiries, vendors who did not submit a bid advised that they were unable to obtain pricing from the manufacturer prior to the bid deadline, as pricing had not been established for the new model year. They stated that they would be able to bid at a later date as pricing will be available starting in May of 2016.
The Fleet Manager has determined that the bid from Chase Chevrolet meets the bid specifications; however, the bid price is significantly higher than the bids received for the same type of truck in 2015. That bid process yielded bids of $38,894.50, $39,164.98, and $40,684.28 per unit. The low bid from 2015 was thus more than 15 percent lower than the single bid received this year. Staff anticipates that requesting new bids at the start of the 2016-2017 fiscal year will produce a more competitive field.
It is recommended that Council reject the bid for the purchase of six one-ton service body pickup trucks from Chase Chevrolet of Stockton, California, in the amount of $302,959.14.
Financial Summary
There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Chase Chevrolet Bid