REPORT TO THE CITY COUNCIL FROM: GREGORY A. BARFIELD, M.A., Director Department of Transportation BY: SHARLEE FLORES, Senior Management Analyst Department of Transportation SUBJECT ..Title Award a three-year contract, with options for two one-year extensions to Michelin North America, Inc. (Michelin), for radial tire leasing services for the FAX bus fleet, in the amount not to exceed $1,646,640.34 for the initial three-year base term or not to exceed $3,000,000.00 for all five years, if options for two one-year extensions are exercised. Service and product costs for the option years have factored in adjustments in accordance with the relevant Producer Price Index (PPI). (Bid File 12502217) ..Body RECOMMENDATION Staff recommend Council award a three-year contract, with options for two one-year extensions to Michelin North America, Inc. (Michelin), for radial tire leasing services for the FAX bus fleet, in the amount not to exceed $1,646,640.34 for the initial three-year base term or not to exceed $3,000,000.00 for all five years, if options for two one-year extensions are exercised. Service and product costs for the option years have factored in adjustments in accordance with the relevant Producer Price Index (PPI). EXECUTIVE SUMMARY To support fleet operations and provide safe, reliable service to passengers, the Department of Transportation/Fresno Area Express (FAX) sought to establish a service contract with a tire supplier to lease and maintain transit radial tires for our fixed-route bus fleet. A request for proposals (RFP) was issued May 19, 2025, via Bid File Number 12502217, which resulted in two proposal submissions. The Selection Committee evaluated the proposals based on past performance and experience, price, technical approach and reporting, and knowledge and approach of required regulations. After careful examination, the Selection Committee recommended Michelin for award. BACKGROUND FAX operates a fixed-route bus fleet of 138 heavy-duty compressed natural gas (CNG), battery electric buses (BEBs), and hydrogen fuel cell electric buses (FCEBs), which provide 363 days of transit service to the residents of the City and County of Fresno each year, accruing over 34,000,000 vehicle miles. Having an effective tire maintenance and replacement program is critical to ensuring bus safety and reliability. It is also a large cost component of bus maintenance; therefore, FAX follows the industry practice of leasing from a qualified tire supplier. The lease structure is based on the aggregate mileage accrued by the fleet, and a multi-year contract is used to provide continuity of service and quality. To support fleet operations and provide safe, reliable service to passengers, FAX sought to establish a service contract with a tire supplier to lease and maintain transit radial tires for our fixed-route bus fleet. A multi-year requirements contract was determined to be the most cost effective and efficient way to acquire these products and associated services. The service contract is for three years with two optional one-year extensions. An RFP was issued May 19, 2025, via Bid File Number 12502217, and closed on June 17, 2025, which resulted in two proposal submissions. Both proposers were found to be responsive and responsible. The Selection Committee evaluated both proposals based on the following criteria: Past Performance and Experience - The contractor's experience and history in radial tire leasing services relevant to FAX's needs. Including direct experience on projects of similar size, scope, and complexity. This may include client references, thoroughness, or any awards or recognition received for past performance. Price - Scoring based on lowest price in relation to price offered. Technical Approach and Reporting - Approach to quality and comprehensive inspection/testing plans, quality assurance procedures and response time capabilities and procedures. Proposers reporting approach, including documentation and data-tracking systems such as online report access capability as well as data collection and presentation. Knowledge and Approach of Required Regulations - Proposer demonstrates knowledge of all required regulations and approach to meet regulations. Team members/tire technicians have relevant certifications and training. Certifications from recognized organizations demonstrating a commitment to staying up to date with regulations and industry standards. Drug and alcohol testing program is FTA compliant. After careful examination, the Selection Committee recommended Michelin for award. The Director of Transportation concurs with the recommendation of the Selection Committee. Pricing conditions will remain fixed for the initial base contract term in the amount not to exceed $1,646,640.34, and option years for the service will adjust in accordance with the relevant PPI for a total not to exceed $3,000,000 for all five possible years. The City Attorney has reviewed the Agreement and approved it to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not implemented because federal funding precludes the use of geographical preferences. FISCAL IMPACT There is no impact to the General Fund from this action. Expenses from this contract shall be funded primarily through FTA Program 5307 funds. FAX enterprise funds will make up the required local match. Sufficient appropriations were included and are available in the FAX FY2026 budget. Attachments: Proposal Evaluation Form RFP 12502217 Michelin's Proposal Michelin's Cost Proposal Service Contract