Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JUNE 20, 2019
Subject
SUBJECT: ENGINE OIL FOR METRO BUS FLEET
Action
ACTION: AUTHORIZE CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Contract Modification No. 7 to Contract No. VM67502000, Engine Oil, with Rosemead Oil Products, Incorporated to provide engine oil for Metro's bus fleet, in the amount of $252,000, increasing the total Contract value from $1,789,600 to $2,041,600.
Issue
ISSUE
Metro's Board approved the award of a Contract in January 2017 to Rosemead Oil to provide engine oil for Metro's bus fleet for a base one year, with a one-year option in the amount of $1,626,900. Metro exercised its Contract option in March 2018, and a new replacement contract was planned to be awarded by April 2019. However, two replacement contract solicitations have not resulted in successful awards, and an extension to the existing Contract is required to maintain a necessary supply of engine oil for Metro's bus fleet operation.
Staff has twice attempted to procure its engine oil supply service through Metro small business set-aside (SBE) program without success. In November 2018, staff cancelled its first solicitation because the lowest responsive responsible bid was $500,000 in excess of Metro's Independent Cost Estimate (ICE), thus the bid price was deemed not fair or reasonable. Subsequently, staff issued a second SBE set-aside solicitation in December 2018 and received two bids in March 2019. Unfortunately, both bids were deemed to be non-responsive. To ensure a successful procurement staff will issue a third solicitation to the open engine oil market regardless of bidder size and anticipates an award recommendation will be presented to Metro's Board in September 2019 or sooner.
This recommended Board action will provide sufficient contract funding for engine oil through November 30, 2019 if necessary, while a new procurement...
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