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. |
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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 |
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A 5.11 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20120809_511 (Board Meeting) * Section A Item# 5.11 |