HCPS FL Logo Business
Action Item
DATE: Thursday, August 9, 2012
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Renewal of the Bid Submitted by Mears Motor Leasing - Invitation to Bid (ITB) #11063-DST Driver Education Vehicles (Business Division)
EXECUTIVE SUMMARY
On June 14, 2011, the Board approved Mears Motor Leasing as the lowest and best supplier to provide 153 mid-size passenger automobiles for use in the district's Driver Education Program for 27 high schools.

The initial term of the contract was for a one-year period with four one-year renewals. The monthly rate for a 2012 Ford Fusion was $219. The capital cost of the lease was significantly reduced by two factors, which are a Ford fleet incentive of $1,800, and a very high residual value determined by a preselected buyer.  To put this pricing in perspective, a comparable mid-size model from the same manufacturer cost the district $276 in 2007/2008.

The initial renewal proposed a monthly rate for a 12-month lease, for the same vehicle, at $382 a month.  The increase was due to the elimination of the manufacturer incentive and high residual.  The total increase cost to the district for 153 vehicles would be $299,268.

Executive Summary continued.

STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Funds of approximately $580,000 will be available in the Secondary Education Budget.  Expenditures were $405,475 for 2011/2012, and $488,329 for 2010/2011.
EVALUATION
Contract administration or evaluation is performed by the Project Manager (end user) and 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
Wynne A. Tye, Assistant Superintendent   Gretchen Saunders
Curriculum and Instruction
(813 272-4221
  Chief Business Officer
(813) 272-4270
    A 5.11
Hillsborough County Public Schools (Florida) * Mtg.#20120809_511 (Board Meeting) * Section A Item# 5.11