Title
Bus Tire Leasing and Services
Action
Action:
A. Approve a unit price contract with Bridgestone Americas Tire Operations, LLC for Bus Tire Leasing and Services for an initial term of three years, and
B. Authorize the City Manager to renew the contract for up to two, one-year terms with price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
John Lewis, CATS
Tangee Mobley, CATS
Explanation
§ Leasing tires for use on buses is the predominant practice of transit agencies nationally. The benefits of leasing include:
− Low inventory,
− On-going technical support,
− Equipment and tire disposal, and
− Minimal employee overhead.
§ The City has used a bus tire leasing company to provide tires for the bus fleet since 1980.
§ On March 1, 2017, the City issued a Request for Proposals (RFP); three proposals were received from interested service providers.
§ Bridgestone Americas Tire Operations, LLC best meets the City’s needs in terms of qualifications, experience, cost, and responsiveness to the RFP requirements.
§ Estimated contract expenditures are $918,354 for the first year, with annual increases of approximately 3.22 percent. With both renewals the total expenditure is estimated to be $4,888,231 over the five-year term.
Charlotte Business INClusion
No subcontracting goal was established because there are no subcontracting opportunities (Part B: Section 2.3 of the Charlotte Business INClusion Policy)
Fiscal Note
Funding: CATS Operating Budget