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Report No: Meeting Date:
T/WNS/T
15-113a December 9, 2015
Alameda-Contra Costa Transit District
STAFF REPORT TO:
AC Transit Board of Directors
FROM:
Michael A. Hursh, General Manager
SUBJECT:
Tire Mileage and Leasing Contract Award
ACTION ITEM RECOMMENDED ACTION(S): Consider authorizing the General Manager to award a contract to Brannon Tire, Inc. for the Tire Mileage and leasing Program.
EXECUTIVE SUMMARY: The current tire mileage and leasing services contract (2010-1151) is in its last year and requires a new contract going forward to provide these services. The tire mileage and leasing contract supports the District by furnishing tires, equipment, and personnel for the installation, removal, and maintenance of tires for buses. Staff recommends award to Brannon Tire for the Tire leasing and Mileage Program for a three (3) year base period of the contract. Brannon Tire is the current tire contractor and has successfully supported the District's requirements and expectations. The contractor will be required to provide all equipment and personnel to support and maintain tires on all District revenue buses. Staff will come back to the Board for consideration of the option years based upon the performance of the contractor during the base period.
BUDGETARY/FISCAL IMPACT: The total cost for this three (3) year base period contract is $8,637,723.14. The funding for the tire mileage and leasing services contract will be included in the Operations Department budget.
BACKGROUND/RATIONALE: The current tire mileage and leasing services contract (2010-1151) is in its last year. The tire mileage and leasing contract supports the District by providing all necessary tires, equipment and personnel to replace and maintain tires used on all revenue service buses. The District has no equipment or personnel to install and maintain tires for revenue buses at the District. The capital cost for such tire equipment and the staff to support the maintenance of bus tires is not a cost effective option for the District. Staff recommends award to Brannon Tire for the Tire leasing and Mileage Program for a three (3) year base period of the contract . The contractor will be required to provide all equipment and personnel to support and maintain tires on all District revenue buses. Brannon Tire is the 117 of 388
Report No. 15-113a Page 2 of 2 current tire contractor and has successfully supported the District's requirements and expectations. Staff will come back to the Board for consideration of the option years based upon the performance of the contractor during the base period. The District received two bids for the tire mileage and leasing services contract solicitation from Brannon Tire and Bridgestone. Bridgestone was deemed to be non-responsive due to 9 pages of exceptions being included with their bid. Brannon Tire was the only responsive bidder, and their pricing was found to be fair and reasonable based upon the comparative analysis shown below. Brannon's bid was below the ICE {Independent Cost Estimate) and the aggregate of the full five year period is 4.6 percent above the current annual pricing. The service portion of the bid came in at a 2 percent increase over current pricing and remained consistent on an annual basis.
ADVANTAGES/DISADVANTAGES:
The advantage of having a tire mileage and leasing contract is that the selected contractor will have the specific tires, equipment, personnel and experience in servicing and maintaining the various types of tires used on District buses. There are no known disadvantages to having a tire mileage and leasing contract. ALTERNATIVES ANALYSIS:
There are no cost effective alternatives to issuing a contract for the tire mileage and leasing services. The alternative would be in-house maintenance of the tires; however, this is not recommended due to the liability from tire failures. PRIOR RELEVANT BOARD ACTIONS/POLICIES:
15-113 Tire Mileage and Leasing Contract ATTACHMENTS:
None. Executive Staff Approval: Reviewed by: Prepared by:
James D. Pachan, Chief Operating Officer/Interim Chief Financial Officer Denise C. Standridge, General Counsel Jon Medwin, Director of Purchasing Stuart Hoffman, Technical Services Manager
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