REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 28, 2022
FROM
PETE MENDOZA, Interim Director, Purchasing Department
SUBJECT
Title
Fixed Rate Automotive Repair Services Contracts
End
RECOMMENDATION(S)
Recommendation
1. Approve and authorize the Purchasing Agent to establish Purchase Order agreements with 41 vendors listed in Attachment A and pricing in Attachment B, to provide automotive and specialty vehicle repair services at fixed rates, plus additional charges for necessary ancillary services, from July 9, 2022 to July 8, 2027.
2. Authorize the Purchasing Agent, within the first four years, to periodically issue and sign new Purchase Order agreements with additional qualified vendors with the termination date of July 8, 2027.
3. Authorize the Purchasing Agent to adjust fixed rates included in Attachment B in order to match industry standard rates and to add or delete automotive and specialty vehicle repair services.
4. Authorize the Purchasing Agent to execute non-competitive agreements with automotive service vendors to supplement services in underserved areas, in an amount not to exceed $200,000 annually per vendor.
(Presenter: Pete Mendoza, Interim Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner
FINANCIAL IMPACT
The impact on Discretionary General Funding (Net County Cost) and each department's budget is based upon the need for automotive and specialty repair services. The County's annual expense for these services is approximately $3.5 million. Departments that require automotive repair services are responsible for ensuring there is adequate funding in the department’s current and future budgets.
BACKGROUND INFORMATION
Automotive and specialty vehicle repair services include mechanical repair services, paint and body repairs, glass replacement, smog certification, and repairs to specialty vehicles. These services are critical to maintain public safety for law enforcement, emergency responders, and the County's motor pool fleet.
Recommendation No. 1 is requesting authorization for the Purchasing Agent to establish purchase orders with each vendor listed in Attachment A. Recommendation No. 2 will enable the Purchasing Agent to add additional qualified vendors as the competitive Request for Qualifications (RFQ) process opens periodically. Recommendation No. 3, allows the Purchasing Agent to approve adjustments to the fixed rates, and to add or delete services in order to meet the needs of County departments. Due to demands on the industry, the rates for auto repair services may fluctuate. Purchasing is requesting authorization to adjust fixed rates in order to meet the standard industry rate at the time of service. Adjusting rates may be necessary to ensure the timely service of County vehicles. Recommendation No. 4 will enable the Purchasing Agent to establish negotiated agreements in underserved areas. The authorities requested in the recommendations are critical and allow Purchasing to work with departments to ensure automotive repairs are completed quickly and at a nearby location, reducing the time a vehicle is out of service.
The recommended actions enable the County to aggregate countywide expenditures on automotive repair services, which will allow the County to better analyze activity and pursue additional operational efficiencies and opportunities for cost savings. In addition, the use of fixed rate contracts is more efficient than incrementally increasing service contract limits with individual vendors. Vendors are categorized by geographic region and repair category.
Approval of this item enables departments to use any contracted vendor in the region, which aids in completing repairs in a timely fashion. In areas where there is no contracted vendor, or where available qualified vendors are insufficient to meet demand, the Purchasing Department will negotiate direct agreements with available vendors on a non-competitive basis or seek to qualify additional vendors through the competitive RFQ process. Departments may also obtain competitive quotes from non-contracted vendors for needed repairs, and assume responsibility for monitoring repair charges and vendor performance in those instances.
PROCUREMENT
On March 30, 2022, the Purchasing Department released an RFQ to solicit qualified vendors to provide automotive repair services to County departments, and notified 264 prospective and incumbent vendors through San Bernardino County’s electronic Procurement Network (ePro). The RFQ defined service needs and the industry manual by which the number of billable service hours and parts pricing would be determined.
Purchasing received 44 responses to the RFQ. All proposals were reviewed for completeness of the RFQ and to ensure the vendor met the minimum qualifications. Of the 44 proposals, three vendors did not submit the required documentation. The three vendors were sent denial letters with information regarding the County’s intention to release additional RFQs. In order to be responsive to changes in countywide demand, the RFQ for automotive repair services will be re-opened periodically through July 8, 2026, for vendors to apply for qualification. Purchasing sent notification of intent to award to the 41 vendors listed in Attachment A. If authorized, Purchasing will issue nonexclusive agreements with the listed vendors that agreed to the terms and conditions in the RFQ. Inclusion on the list of approved vendors is not a guarantee that a vendor will receive any business from the County, only that County departments may use the vendor to provide those services as needed.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on June 6, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 13, 2022.