Subject: APPROVAL OF OPTION TO PURCHASE FOUR ADDITIONAL TRAILER MOUNTED
TRAFFIC MESSAGE BOARDS
Approve an option
to purchase four (4) additional trailer mounted traffic message boards from
Signalisation Ver-Mac, Inc. (Ste-Foy, Quebec, Canada) for the same bid price of
$18,000 per unit for a total cost of $77,760 including tax and delivery. Authorize the Director of General Services
to execute a purchase order for the:
a.
immediate purchase of four (4) additional units; and
b.
subsequent purchase of the additional units at the same bid price without
further Council action other than the appropriation of necessary funds.
The General Services Department/Fleet Management Division has requested the purchase of four (4) additional trailer mounted traffic message boards for the Norman Y. Mineta San Jose International Airport. The new boards are to be additions to the existing fleet and will be utilized for traffic control.
ANALYSIS
Pursuant to
the San Jose Municipal Code 4.04, the City Manager or designee has the
authority to purchase supplies, equipment, and general services up to
$100,000. This authority has been
delegated to the Department of General Services. When awards based on an individual bid reach a cumulative total
of $100,000, all future awards relative to the bid are presented to Council for
award.
Formal Bid #00-01-51 was advertised on December 26, 2000. In addition, the bid was faxed to six (6)
vendors and posted on Demandstar. The
bid opening was January 8, 2001 and total of five (5) bids were received. Signalisation Ver-Mac, Inc. was the low
bidder meeting specifications on the original bid for trailer mounted traffic
message boards. Signalisation Ver-Mac was awarded the purchase order on February 7, 2001 at $18,000 per unit for a total cost of $58,455
including tax and delivery. The
approval of the option for $77,760 will
bring the total award from this bid process to $136,215. Therefore, City Council approval is
required.
San Jose Municipal Code Section 4.12.148 entitled “Additional Quantities” states “…the City Manager may purchase additional quantities at the award price, if such options for additional quantities was approved by Council.”
In all formal bids issued, the Department of General
Services asks each vendor if mutually agreeable, the City of San Jose has the
option to purchase additional quantities at the bid price received. When that
option is offered, the Department seeks Council approval to make future awards
should the need arise for additional units.
Not applicable.
This memorandum has been coordinated with the
City Attorney’s Office, Department of Transportation, and the Budget Office.
BUDGET REFERENCE
Fund: Airport Renewal and Replacement Fund - 527
Amount: $3,333,000
Budget Document: 2001-02
Adopted Capital Budget, Page 40
JOSE OBREGON
Director of General Services Department