Broward County Commission Regular Meeting
Director's Name: Coree Cuff Lonergan
Department: Transportation
Information
Requested Action
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A. MOTION TO APPROVE First Amendment to the Participating Addendum between Broward County and Michelin North America, Inc. extending the initial term from October 1, 2024, to July 1, 2029, authorizing the Director of Purchasing to approve and execute an additional extension for up to 12 months after the end of the new initial term, and increasing the maximum not-to-exceed amount of the Participating Addendum from $249,000 to $4,500,000; and authorizing the Mayor and Clerk to execute same.
ACTION: (T-10:52 AM) Approved.
VOTE: 7-0. Commissioner Geller and Commissioner McKinzie were not audible during the vote.
B. MOTION TO APPROVE First Amendment to the Participating Addendum between Broward County and Goodyear Tire & Rubber Company extending the initial term from October 1, 2024, to July 1, 2029, authorizing the Director of Purchasing to approve and execute an additional extension for up to 12 months after the end of the new initial term, and increasing the maximum not-to-exceed amount of the Participating Addendum from $249,000 to $4,500,000; and authorizing the Mayor and Clerk to execute same.
ACTION: (T-10:52 AM) Approved.
VOTE: 7-0. Commissioner Geller and Commissioner McKinzie were not audible during the vote.
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Why Action is Necessary
Per the Broward County Procurement Code, Section 21.47(a), except as otherwise provided in the Procurement Code, the Board shall make all awards, and authorize the execution of associated contracts, with a value of more than $500,000, inclusive of the value of any renewals or extensions provided for in the contract.
What Action Accomplishes
Approves amendments that will provide an increase in the current contract maximum not-to-exceed amount and extends the contract terms for the Tires Tubes and Related Services contract TRN2128832G1 in order to meet and sustain County fleet vehicle operations.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE TRANSPORTATION DEPARTMENT AND THE PURCHASING DIVISION RECOMMEND APPROVAL OF THESE MOTIONS.
On August 19, 2024 and July 1, 2024, Broward County entered into Participating Addenda with Michelin North America, Inc. (“Michelin”) and Goodyear Tire & Rubber Company (“Goodyear”), respectively, in accordance with the Broward County Procurement Code, Section 21.27, which authorizes the Director of Purchasing (subject to the other limitations in the Procurement Code) to purchase goods and services under any procurement contract held by a governmental agency or nonprofit entity, where (a) the Director of Purchasing determines the originating contract was competitively procured in accordance with generally accepted standards of public procurement; (b) the originating contract expressly permits such purchasing, or the governmental agency or nonprofit entity that awarded the originating contract or the vendor who holds the originating contract (as applicable) allows the County to purchase therefrom; and (c) the terms and conditions offered to the County by the vendor do not materially deviate from the terms and conditions of the originating contract.
The two Participating Addenda authorized the Broward County Transportation Department to make tire and related purchases through Boulevard Tire Center and Tiresoles of Broward Inc., each an authorized distributor of products from Michelin and Goodyear, respectively. The underlying governmental contract was State of Florida Department of Management Services Purchasing Contract 25172500-24-ACS Tires, Tubes, and Related Services (“State Contract”). The term of each Participating Addendum was from July 1, 2024, through October 1, 2024, each with a maximum not-to-exceed amount of $249,000.
The State Contract is, itself, an agreement predicated on an underlying National Association of State Procurement officials (NASPO) Tires, Tubes and Services contract awarded April 1, 2024. This was a competitively solicited contract under bid proposal number RFP0223005113. The NASPO contract has a potential six-year term with a three year initial term and three one-year extensions. The first term ends on June 30, 2027, and the last one-year extension ends on June 30, 2030.
The purpose of these current Participating Addenda is to provide for the continued purchase of vehicle and equipment tires from local commercial authorized distributors of Michelin and Goodyear tires for County vehicles maintained by the Fleet Services Division. After further review of the underlying State Contract, the Transportation Department and Purchasing Division believe it is in the best interest of Broward County to extend each Participating Addendum through the end of the potential term of the State Contract (if all renewals are exercised) through July 1, 2029, and increase the maximum amount that may be purchased under each Participating Addendum (from $249,000 to $4,500,000), so that the County can purchase the tires, tubes, and related services required to keep the County’s fleet of approximately 3,500 vehicles and equipment available to serve the residents and visitors of Broward County.
If these items are approved, the Board is approving a First Amendment to each of the two Participating Addenda accomplishing the following:
• Extending the end of the initial term of each Participating Addendum from October 1, 2024, to July 1, 2029, with the potential for the Director of Purchasing to further extend each Participating Addendum for up to an additional 12 months; and
• Increases the maximum not-to-exceed amount on each Participating Addendum from $249,000 to $4,500,000.
The proposed First Amendments and the underlying Participating Addenda were reviewed and approved for legal sufficiency by the Office of the County Attorney.
Source of Additional Information
Coree Cuff Lonergan, Director, Transportation Department (954) 357-8361
Ross Meslin, Director, Fleet Services Division (954) 357-6492
Fiscal Impact
Fiscal Impact/Cost Summary
The combined amount of the two First Amendments amounts increase the total not-to-exceed amounts of the Participating Addenda by $8,502,000 (from $498,000 to $9,000,000), with any purchases made to be allocated from the County’s local funds. Each requirement processed against these contracts will be funded by the appropriate budgeted source. The funds estimated for the current Fiscal Year are included in the current Fiscal Year budget.