TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 15, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Issue purchase order for Contract 08-672-11 Furnishing, Delivering, and Installing Tires in the Stickney Service Area, to Commercial Tire Service, Inc., in an amount not to exceed $72,206.00, Account 101-69000-623250, Requisition 1234718
Body
Dear Sir:
On March 6, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids for Contract 08-672-11 Furnishing, Delivering, and Installing Tires in the Stickney Service Area.
In response to a public advertisement of March 12, 2008, a bid opening was held on April 1, 2008. The bid tabulation for this contract is:
COMMERCIAL TIRE SERVICE, INC. $72,206.00
Ninety-four (94) companies were notified of this contract being advertised and seven (7) companies requested specifications.
The Purchasing Agent has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for firms not bidding: can provide only limited service at this time, and could not provide a bid at this time. In light of these findings, the Purchasing Agent is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
Commercial Tire Service, Inc., the sole responsible bidder, is proposing to perform the contract, in accordance with the specifications. The estimated cost for this contract was $85,000.00, placing the bid of $72,206.00, approximately 15.1 percent below the cost estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is not applicable to the service.
In view of the foregoing, it is requested that the Purchasing Agent be authorized to issue a purchase order to Commercial Tire Service, Inc., for the services required, in an amount not to exceed $72,206.00. The bid deposit in the amount of $4,200.00 shall be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Purchasing Agent. Funds are available in Account 101-69000-623250.
Requested, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this May 15, 2008. Approved, President Terrence J. O’Brien