Action Item
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Business
Action Item |
| DATE: | Tuesday, May 8, 2012 |
| TO: | School Board Members |
| FROM: | MaryEllen Elia, Superintendent |
| SUBJECT / RECOMMENDATIONS | |
| Accept the Piggyback of the Invitation to Bid (ITB) #863-000-10-1 Tires, for the Purchase of Tires Between the State of Florida, Department of Management Services and The Goodyear Tire & Rubber Company (Business Division) | |
| EXECUTIVE SUMMARY | |
| The district will be utilizing the state of Florida contract to purchase new tires for use on automobiles, vans, trucks, trailers, and buses. Goodyear tires will be purchased from the state of Florida authorized dealer, McGee Tires Stores, Inc. This contract will be in place while the Procurement and Transportation Departments prepare a Request for Proposal (RFP) for the purchase and/or leasing of tires.
The term of the contract is valid through April 30, 2013. The Florida Department of Education (FLDOE) Purchasing Rules 6A-1.012 and district policy allow purchases from contracts awarded by other government agencies, district school boards, Department of Management Services (DMS), etc., at or below specified prices. The DMS establishes agreements for use by other public agencies, within the state of Florida, and requires the awarded vendors to offer the DMS and qualifying public entities the state’s best prices. Due to the volatility of tire prices, the Transportation Department will make a larger-than-usual purchase to stock the warehouse with tires at current prices. There will soon be a large industry-wide increase in the price of tires. Note that tire prices are subject to large fluctuations in natural rubber prices. Rubber has increased from 57 cents per pound in the fourth quarter of 2008, to approximately $1.79 per pound, a 15-year high. This accounts for 25 percent of the tire price. Investor speculation also played a major role in price increases and raw materials shortages. |
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| STRATEGIC OBJECTIVES | |
| • Align financial resources to support the district’s strategic goals | |
| FINANCIAL IMPACT (Budgeted: Yes) | |
| Year-to-date expenditures are $435,432 for 2011/2012, and $349,410 for 2010/2011. The Transportation Department made a purchase to replenish inventory before the 10.8 percent increase for a savings of $9,428. | |
| EVALUATION | |
| Contract administration or evaluation is performed by the Project Manager (end user) and the Procurement Officer, who function as a team. Reviews are conducted face to face, typically quarterly, or by utilizing an online vendor performance report. Prior to soliciting a new contract, the Contract Administration team must first give consideration to the specifications and supporting data of the expiring contract. | |
| SUBMITTED BY: Jean Bowman, General Manager, Procurement Department | |
| Cathy Valdes | Gretchen Saunders | |
| Chief Facilities Officer (813) 272-4004 |
Chief Business Officer (813) 272-4270 |
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| A 5.16 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20120508_501 (Board Meeting) * Section A Item# 5.16 | ||