Explanation
BACKGROUND: This ordinance is for the option to purchase Automobiles for the City of Columbus. Automobiles are used in various City agencies. The contract will allow the City to purchase any automobile manufactured by Ford. The majority of automobiles to be purchased from this contract are likely to be the Ford Focus and the Ford Fushion.
The term of the proposed option contract would be from the date of execution by the City up to and including December 31, 2012. The Purchasing Office opened formal bids on November 21, 2011.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation No. SA004176). Fifty-eight (58) bids were solicited; Four (4) bids were received. The specifications asked the bidders to provide a dollar amount over triple net dealer invoicing.
The Purchasing Office respectfully asks for a waiver of the competitive bidding requirements of Section 329 because the lowest bidder, Ricart Properties, Inc. dba Ricart Ford, Inc. took an exception to two clauses of the bid. Ricart Properties, Inc. dba Ricart Ford, Inc. will provide the standard Ford powertrain warranty of 60,000 miles instead of the 100,000 miles asked for in the bid. Ricart Ford Inc. also proposed providing replacement vehicles for warranty work that takes more than 10 days, for a period of 3 years and 36,000 miles instead of five years as asked for in the bid. The Purchasing Office in conjunction with the Fleet Management Division believes it is in the best interests of the City to accept these exceptions. If the award were made to the only bidder not to take exception to these clauses, the City would spend over an additional $1,400 for each compact automobile, and an additional $4,400 for each mid-size automobile. Discussions with the highest bidder confirmed that allowing them to reduce the warranty to that proposed by Ricart Ford, Inc. would not lead to a lower bid on their part.
The Purchasing Office is recommending award of the contract through negotiation to the lowest, responsible and best bidder:
Ricart Properties, Inc. dba Ricart Ford, Inc.
Total Estimated Annual Expenditure: $4,000,000.00
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
This ordinance is being submitted as an emergency because, without emergency action, the 2012 model year build-out dates will pass and the City would pay more money for 2013 model year automobiles.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Mail, Print Services and UTC Fund. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to enter into a contract for the option to purchase Automobiles with Ricart Properties Inc. dba Ricart Ford, Inc.; to authorize the expenditure of one dollar to establish the contracts from the Mail, Print Services and UTC Fund; to waive the competitive bidding provisions of the Columbus City Codes; and to declare an emergency. ($1.00)
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on November 21, 2011 seeking automobiles and selected the lowest, responsible and best bid; and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) purchasing environmentally preferred materials, supplies and equipment; and 4) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, these automobiles will replace older, high maintenance units used in the daily operations of City Agencies, this is being submitted for consideration as an emergency measure; and
WHEREAS, it is in the best interests of the City to waive the competitive bidding provisions of the Columbus City Codes, and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department in that it is immediately necessary to enter into contracts for an option to purchase Automobiles, so that the 2012 model build-out dates are not missed, thereby saving the City money, thereby preserving the public health, peace, property, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to enter into a contract for an option to purchase Automobiles in accordance with SA003722 thru December 31, 2012 as follows:
Ricart Properties Inc. dba Ricart Ford, Inc.: Amount: $1.00
SECTION 2. That the expenditure of $1.00 is hereby authorized from the Mail, Print Services, and UTC Fund, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2140, OCA: 451130, to pay the cost thereof.
SECTION 3. That the provisions of Sections 329.06 of the Columbus City Codes are hereby waived.
SECTION 4. That for the reason stated in the preamble here to, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.