REPORT TO THE CITY COUNCIL FROM: JOE VARGAS, Director Department of Transportation BY: BRIAN BARR, Assistant Director Department of Transportation SUBJECT ..Title Reject all bids received for the purchase of five Freightliner M2 106 cab and chassis trucks for the Department of Public Works, Street Maintenance Division (Bid File #3868) ..Body RECOMMENDATION Staff recommends Council reject all bids received for the purchase of five Freightliner M2 106 cab and chassis trucks. EXECUTIVE SUMMARY The Department of Public Works, Street Maintenance Division seeks to purchase five Freightliner M2 106 cab and chassis trucks to transport equipment and personnel to jobsites for the construction of curbs, gutters, and sidewalks. The new trucks will be purchased as replacements, through the approved competitive bidding procurement process. The sole bid received did not include the required bidder bond and was deemed invalid. Unfortunately, this is the fourth rebid of Freightliner M2 106 cab and chassis specification by the Municipal Fleet Division. The initial bid on June 29, 2021, resulted in non-responsive bids. The second and third bids on October 5, 2021, and November 16, 2021, did not receive bids. Feedback obtained by the Municipal Fleet Division indicated that Freightliner dealers were not able to provide bids due to non-availability of vehicles from the manufacturer due to global supply chain constraints. Within 90 days, staff will rebid the units with a longer solicitation period, and more generalized specifications. The goal is to attract additional interest and provide ample opportunity to complete the bid documents. Additionally, the Purchasing Division has contacted the local Freightliner dealer to provide resources and instruction on how to bid City of Fresno contracts. BACKGROUND The Department of Public Works, Street Maintenance Division provides service to the residents of Fresno through the construction and maintenance of roadways. This work is performed with backhoes for demolition, paving equipment to lay asphalt, and concrete finishing trucks to build curbs, gutters, and sidewalks. The current concrete finishing trucks are built with a 16 foot bed designed to transport lumber for concrete forms, as well as leveling and finishing tools used in the construction process. The new concrete finishing trucks will be built utilizing rehabilitated bodies from outgoing units, mounted to Freightliner M2 106 chassis compliant with the latest US 2010 emissions standard. The M2 106 is designed with a sharp turning radius for increased maneuverability in tight neighborhoods. As these trucks will have long wheelbases, this maneuverability increases the operator's ability to get in and out of areas efficiently. Further refinements from the outgoing trucks include a lower overall height, more space between the steering wheel and seat, and wider opening doors for ease of egress. These improvements in design create a truck that is more ergonomic, efficient, and safer to operate. The heavy truck class is on a 10 year or 100,000 mile replacement schedule, which has been established by the Municipal Fleet Division as the optimum replacement time. The units identified for replacement are 19 years old and have well exceeded their useful lives. The Municipal Fleet Division recommends replacement based on the age and condition of the equipment. A Notice Inviting Bids was published in the Fresno Business Journal on March 23, 2022, posted on the City's website, and faxed to 1 exchange. The specifications were distributed to 6 prospective bidders. One sealed bid proposal was received and opened in a public bid opening on April 12, 2022. Staff determined the bid to be invalid due to the omission of a bid deposit. Staff will rebid the units with a longer solicitation period, and more generalized specifications. The goal is to attract additional interest and provide ample opportunity to complete the bid documents. The bid result was also thirteen percent over budget, by attracting more interest, we hope to receive more competitive pricing on the next bid. Additionally, the Purchasing Division has contacted the local Freightliner dealer to provide resources and instruction on how to bid City of Fresno contracts. The City Attorney has reviewed and approved to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is not applicable because this action is rejecting all bids. FISCAL IMPACT No general funds will be used to purchase these items. Ultimately, the funding to cover the purchase cost of the five Freightliner M2 106 trucks was included in the FY2021 and FY2022 adopted budget under the operations of the Street Maintenance Division. The source of funding for this project is SB1 and PROP 111 Gas Tax. Attachment: Bid evaluation #3868