RECOMMENDATION from Chief Procurement Officer to make the following awards for Tires for Fleet Management Department - 3 Years with two one-year options - $21,940,587.20 - Fleet Management Fund:

AMERICAN TIRE DISTRIBUTORS, INC - $8,496,543.30

RUSH TRUCK CENTERS OF TEXAS LP dba WORLD WIDE TIRES - $6,669,526.05

SOUTHERN TIRE MART LLC - $3,625,542.85

HESSELBEIN TIRE SOUTHWEST - $2,430,845.00, and

LAPORTE TIRE CENTER, INC - $601,805.00

COUNCIL DRAW LOTS

GROUP 3, ITEM NO. 19 due to receiving identical bids from RUSH TRUCK CENTERS LP dba WORLD WIDE TIRES and LAPORTE TIRE CENTER, INC in the amount not to exceed $116,325.00

Formal Bids Received October 19, 2017 for S40-S26024 - Approve various awards, as shown below, in the amount not to exceed $21,940,587.20 for tires for the Fleet Management Department.

Specific Explanation:

The Director of the Fleet Management Department and the Chief Procurement Officer recommend that City Council approve various awards, as shown below, in the amount not to exceed $21,940,587.20 for tires for the Fleet Management Department.  It is further requested that authorization be given to make purchases, as needed, for a thirty-six month term with two one-year options.  These awards are for tires to be used by the department for the entire City fleet. 

These are price list and line item awards.  Relative to the price list, the best discount which determines the low bid for a price list is the best bid received for quantities of high-use items selected as sample pricing items based on the current needs of the department.  The bid total for sample pricing items does not represent the total amount estimated to be purchased; rather, this award recommendation is for the total estimated expenditures projected over the awarded term based on the low bid submitted for the representative samples.

This project was advertised in accordance with the requirements of the State of Texas bid laws.  Eleven prospective bidders downloaded the solicitation document from SPD's e-bidding website, and six bids were received as outlined below.

American Tire Distributors, Inc.:  Award on its low bid for Group 1, Item Nos. 2 thru 5; Group 3, Item No. 12; Group 4, Item Nos. 8 and 15; and Group 6; and on its low bid meeting specifications for Group 1, Item No. 1 and 6; Group 4, Item No. 3, 4 , 11, 12, 14, and 17; and Groups 5, 9, 10 and 11 (tires of various sizes and tire price lists) in the amount not to exceed $8,496,543.30. 

Rush Truck Centers of Texas LP dba World Wide Tires:  Award on its low bid for Group 2, Item Nos. 1 and 4; and Group 3, Item Nos. 8, 10, 13, 16, and 21; and on its low bid meeting specifications for Group 2, Item Nos. 2, 5, and 6; and Group 3, Item Nos.  1, 2, 3, and 9 (tires of various sizes) in the amount not to exceed $6,669,526.05.

Southern Tire Mart LLC:   Award on its low bid for Group 3, Item No. 18 and Group 4, Item Nos. 6, 7, 10, and 16;  and Group 7; and on its low bid meeting specifications for Group 4, Item Nos. 1, 2, 5, 9, and 13 (tires of various sizes and a tire price list) in the amount not to exceed $3,625,542.85.

Hesselbein Tire Southwest:  Award on its low bid due to application of the Hire Houston First preference for Group 3, Item Nos. 5, 6, 7, 14, 17, 20, and 22; and on its low bid meeting specifications for Group 8 (tires of various sizes and a price list) in the amount not to exceed $2,430,845.00.

LaPorte Tire Center, Inc.:  Award on its low bid for Group 3, Item Nos. 4, 15, 23, and 25; and on its low bid meeting specifications for Group 2, Item No. 3; and Group 3, Item Nos. 11 and 24 (tires of various sizes) in the amount not to exceed $601,805.00.

Tie bids were received from Rush Truck Centers LP dba World Wide Tires and LaPorte Tire Center, Inc. for Group 3, Item 19 in an amount not to exceed $116,325.00.  It is requested that Council draw lots for this item.

M/WBE:

Zero-percentage goal document approved by the Office of Business Opportunity.

Hire Houston First:

The proposed award requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation.  In this case, Hesselbein Tire Southwest is HHF designated and received award based on their designation. American Tire Distributors, Inc., Rush Truck Centers LP of Texas dba World Wide Tires, Southern Tire Mart LLC, and LaPorte Tire Center, Inc. do not meet the requirements for HHF designation; no HHF firms were within three percent.

Fiscal Note:

Funding for this item is included in the FY 2018 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.

Desiree Heath          SPD          (832) 393-8742

Jeff Meekins             SPD          (832) 393-8743

Marchelle Cain         FMD          (832) 393-6910