REPORT TO THE CITY COUNCIL September 26, 2019 FROM: GREGORY A. BARFIELD, Director Department of Transportation BY: BRIAN BARR, Assistant Director Department of Transportation WYATT ROOKS, Management Analyst II Department of Transportation SUBJECT ..Title Award a five-year requirements contract, with two one-year options, to Bridgestone American Tire Operations, LLC, of Nashville, Tennessee, for the leasing of transit radial tires to the Department of Transportation/FAX in the amount of $1,596,904.88 (Bid File No. 9512) ..Body RECOMMENDATION Staff recommends Council award a five-year requirements contract, with two one-year options, to Bridgestone American Tire Operations, LLC, of Nashville, Tennessee, for the leasing of transit radial tires to the Department of Transportation/FAX in the amount of $1,596,904.88, and authorize the Director of Transportation to execute all documents. EXECUTIVE SUMMARY FAX operates a fixed-route bus fleet of over 115 heavy-duty CNG powered buses, which provide 363 days of transportation service to the residents of the city and county of Fresno each year, accruing over 26,000,000 vehicle miles in the process. In order to support the operation of the fleet and to provide safe, reliable service to passengers, FAX seeks to establish a contract with a tire supplier for the leasing of transit radial tires, as well as tire maintenance services for the 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. BACKGROUND FAX operates a fixed-route bus fleet of over 115 heavy-duty CNG powered buses, which provide 363 days of transportation service to the residents of the city and county of Fresno each year, accruing over 26,000,000 vehicle miles in the process. Having an effective tire maintenance and replacement program is critical to ensuring bus safety and reliability, while also being 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, whereas a multi-year contract is used to provide continuity of service and constancy of quality. A bid specification was prepared and advertised to perspective bidders on July 10, 2019. Copies of the specifications were requested and distributed to four (4) prospective bidders. One (1) sealed response was received and opened in a public meeting on August 13, 2019. Bridgestone American Tire Operations, LLC, submitted the only bid at the price of $1,596,904.88 and is considered the lowest responsive and responsible bidder. The contract is within 1 percent of the previous contract price notwithstanding of the changes in the scope, terms, and conditions from the previous contract. The mix of tire sizes and expected mileage accruals used for contract calculations have been adjusted in response to changes in fleet structure and size, with the current expected mileage accruals calculated for this contract being 25 percent higher than the previous contract. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDING This is not a "project" for the purpose of CEQA pursuant to CEQA Guidelines section 15378. LOCAL PREFERENCE Local preference was not considered as federal funding precludes the use of local preference. FISCAL IMPACT No General Fund dollars will be used for this contract. This action will be financed 80 percent through current 5307 FTA allocations with the remaining 20 percent coming from farebox and advertising revenue. Attachment: Bid Evaluation