Title
Amendment to Existing Town Tire Purchase Order for FY07 (NB)
This item involves increasing an existing purchase order due to increases in associated costs.
Explanation
In May 2006, the City Commission awarded a one-year contract, final extension to Town Tire for the services of tire repair, balancing and alignment. The estimated cost of services for the requested extension was $150,000. Due to the increase need for tire repair services a modification to increase the existing purchase order is required in the amount of $52,000 for a total of $202,000 to cover expenses through September 2007.
Fiscal Note
Additional funding request of $52,000 is available in Fleet Management's Budget for FY 2007.
Recommendation
The City Commission: 1) approve the purchase order modification increase to Town Tire for a total of $202,000; and 2) authorize the City Manager or his designee to execute modification.
Alternative Recommendation A: The City Commission require re-bidding the contract and risk losing the discount currently allowed under the Agreement.
Alternative Recommendation B: The City Commission return to past practice by requesting quotation on demand and risk losing the efficiencies and price protection of the current contract.