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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Cherryl Beveridge, Chief Operating Officer |
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PRESENTER(S): |
Nathan Hess, Fleet Engineering Supervisor |
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Lorin Simpson, Special Project Manager-Fleet |
TITLE:
title
Contract: Tire Lease and Service Program (The Goodyear Tire and Rubber Company)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve award and authorize Executive Director to execute the contract and associated disbursements with Goodyear Tire and Rubber Company in the amount of $7,050,525.12 to provide Tires and Service of tires for three years (the base term) Execution of option years will require future board approval.
BACKGROUND:
UTA’s Revenue vehicles require a constant supply of tires to replace damaged and worn-out tires. This contract is to supply tires and tire services from The Goodyear Tire and Rubber Company. They will deliver mounting, dismounting, and balancing tires for all five of our bus garages, while maintaining the inventory and tracking of the tires for failures and billing purposes. Goodyear is a long-standing tire company since 1898.
DISCUSSION:
This procurement was completed as a Request for Proposal (RFP) and resulted in negotiating a contract between Utah Transit Authority (UTA) and The Goodyear Tire and Rubber Company to supply tires and service for all our rubber tire revenue service vehicles.
Solicitation: RFP No. 23-03719
Applicable contracts: 23-03719AB
This contract is for a period of Three (3) years commencing on December 01, 2023, and ending on November 30, 2026, and includes the option of two, one-year extensions which if exercised will have the contract expiring on November 30, 2028. The total for each year is estimated to be $2,350,175.04 for a total combined price for the Three (3) years estimated at $7,050,525.12.
The pricing for this contract is estimated based on our current and forecast service levels and is charged per mile for the tires and a separate rate for the service provided as listed in the contract.
Actual monthly bills will be monitored and approved for payment by the Project Manager for the Fleet Engineering Supervisor. Exact amounts will be contingent on number of miles the revenue vehicles run during the year.
CONTRACT SUMMARY:
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Contractor Name: |
The Goodyear Tire and Rubber Company |
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Contract Number: |
23-03719AB |
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Base Contract Effective Dates: |
December 01, 2023 - November 30, 2026 (base contract) |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$7,050,525.12 (estimated for the base three years) |
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Procurement Method: |
RFP |
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Budget Authority: |
2023 Operation Maintenance Budget and 5-Year Transit Financial Plan |
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ALTERNATIVES:
We did have one additional bidder for this contract. After reviewing their proposal UTA determined it would have to change the tire sizes on all our Gillig buses causing us to reprogram the Gillig buses to work properly with a larger tire. Additionally, the evaluation committee did not have confidence in the proposed staffing plan from that proposer.
FISCAL IMPACT:
The contract is for an estimated cost of $2,350,175.04 annually for 3 years for a total of $7,050,525.12. The contract has the option of 2 one-year extensions. If the agency decides to exercise the optional years, the Project Manager would return to the board for additional approvals. This Contract will be covered by the COO Tire budget for each of the three years
ATTACHMENTS:
23-03719AB Contract signed