Formal Bids Received September 3, 2020 for S78 – L29612: Approve an ordinance awarding a contract to Southern Tire Mart, LLC in the maximum contract amount not to exceed $4,607,393.00 for Tire Retreading Services for the Fleet Management Department.
Specific Explanation:
The Director of the Fleet Management Department and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year contract, with two one-year options to Southern Tire Mart, LLC on its low bid meeting specification for Tire Retreading Services in the maximum contract amount not to exceed $4,607,393.00 for the Fleet Management Department.
This project was advertised in accordance with the requirements of the State of Texas bid laws. Three (3) prospective bidders downloaded the solicitation document from SPD’s e-bidding website, and three (3) bids were received as detailed below:
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Company
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Bid Amount
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Goodyear Tire & Rubber Company
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$3,894,439.86 (Did not meet specification)
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Southern Tire Mart, LLC
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$4,607,393.00
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Beasley Tire Services Inc
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$4,770,712.00
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The scope of services is for the replacement of worn tire tread rubber on heavy-duty tires for vehicles owned or used by the City of Houston. The contract requires the contractor to provide all labor, materials, repairs, equipment, tools, supervision, training, and transportation necessary to execute the contract. Services include but are not limited to providing retreading and tire repair services used on commercial trucks, waste haul trucks, and tractor-trailers. In addition, the purpose of this services contract allows the Fleet Management Department to maintain and ensure the City’s vehicle in a maximum safety condition for the City employees on the road.
M/WBE Participation:
M/WBE Zero Percentage Goal approved by the Office of Business Opportunity.
Pay or Play:
The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors. In this case, Southern Tire Mart, LLC provides health benefits to eligible employees in compliance with City policy.
Hire Houston First:
The proposed contract require compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, Southern Tire Mart, LLC is a designated HHF, but they were the successful awardee without application of the HHF designation preference.
Fiscal Note:
Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jerry Adams, Chief Procurement Officer Department Approval Authority
Finance/Strategic Procurement Division
Estimated Spending Authority
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Department
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FY2021
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Out Years
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Total
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Fleet Management
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$691,108.92
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$3,916,284.08
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$4,607,393.00
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