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REJECT BID FOR PURCHASE OF 23 POLICE INTERCEPTOR UTILITY VEHICLES (PUR 17-035)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to reject the single bid received for the purchase of 23 Police Interceptor Utility Vehicles (PUR 17-035) pursuant to Stockton Municipal Code section 3.68.160(B).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On October 7, 2017, the City requested bids for the purchase of 23 Police Interceptor Utility Vehicles (PUR 17-035). On October 26, 2017, one bid was received from San Leandro Ford, of San Leandro, CA (Attachment A). This bid price is over six percent higher than the 2016 low bid price for the same vehicle. In addition, the bid is higher than the current State Contract price, which also could be available to the City. As only one bid was received, and it is higher than anticipated, staff recommends Council approve a motion to reject the single bid received from San Leandro Ford pursuant to Stockton Municipal Code section (SMC) 3.68.160(B). If this bid is rejected, staff will conduct a new solicitation for bids to increase competition.
DISCUSSION
Background
The Fiscal Year 2017-18 replacement budget for the Fleet Internal Service Fund (ISF) includes funding to replace 23 police service vehicles. The units to be replaced are operational, but are beyond their service life.
Fleet staff prepared vehicle specifications and utilized the competitive bid process to obtain bids for the supply of these vehicles. Although the current standard City police unit is manufactured by Ford, the specification was generic and designed such that any of the major sport utility vehicle manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of 23 Police Interceptor Utility Vehicles was published in The Record on Friday, October 7, 2017, and Saturday, October 8, 2017, respectively. On that same weekend, the Notice was mailed to 19 area vendors, including Big Valley Ford, Chase Chevrolet, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,571 recipients.
On October 26, 2017, one bid was received from San Leandro Ford with the following result:
Per Unit Cost Total (23 units)
Unit Price $30,197.00 $694,531.00
DMV Document Fee $ 90.00 $ 2,070.00
9% Sales Tax $ 2,725.83 $ 62,694.09
CA Tire Fee $ 8.75 $ 201.25
Total Purchase Price $33,021.58 $759,496.34
Staff surveyed local vendors regarding the lack of local bids, and was informed that current manufacturer pricing was not available during the bid period. The local vendors were not willing to submit bids due to this pricing uncertainty.
The Fleet Manager determined that the bid from San Leandro Ford meets the bid specifications; however, the bid price is significantly higher than the bids received for the same type of truck in 2016 (PUR 16-008). That bid process yielded a total per unit price of $31,095.55, a difference of approximately six percent from the current bid. In addition, the bid from San Leandro Ford is significantly higher than the current State Contract price, which is similar to the City’s 2016 bid results. Staff anticipates a re-bid process will produce a favorable increase in bid responders and a competitive outcome.
SMC section 3.68.160(B) provides that the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids. Staff recommends Council approve a motion to reject the single bid received from San Leandro Ford.
FINANCIAL SUMMARY
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - San Leandro Ford Bid