Submitted By: Christina Guy
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Presentation By: John King
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Department: Fleet
FORMAL TITLE:
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Additional expenditures under the Florida Department of Management Services contract for the purchase of tires, tubes, and services in the amount of $185,000 for an increased aggregate expenditure of $460,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala oversees a fleet comprising approximately 1,800 vehicles, inclusive of cars, light trucks, Class 8 heavy-duty trucks, and off-road equipment. Annually, more than 1,500 tires utilized by various City departments require repair or replacement. To meet these needs, Fleet Management acquires new tires and related services through competitive contracts. These services include installation, flat repair, retread service, alignments, wheel balancing, and 24/7 emergency roadside service.
FINDINGS AND CONCLUSIONS:
On June 20, 2023, City Council approved the award of a three-year contract to Advanced Tire Service (“Advanced Tire”) for tire services and repair in the amount of $675,000. The initial term of that agreement was due to expire July 17, 2026. This agreement covered tire repair services such as mounting, retreading, flat repair, wheel balancing, and 24/7 emergency roadside service.
On October 1, 2024, City Council approved the City’s utilization of the Florida Department of Management Services Alternate Contract Source Agreement for Tires, Tubes and Services (Contract No. 25175200-24-ACS), for tire purchases and related services, up to an expenditure threshold of $275,000. Originally, the City utilized this agreement solely for wholesale pricing on the purchase of Michelin and Goodyear tires for automobile/passenger, light-duty trucks, medium commercial/heavy-duty trucks, and off-road vehicles.
An unanticipated increase in expenditures under the Advanced Tire contract prompted the Fleet Management Division to evaluate utilization. It was ultimately determined that utilizing Contract No. 25175200-24-ACS for both tire purchases and tire-related services and repairs would result in cost savings to the City through volume discount pricing and the City of Ocala exercised its right to terminate its agreement with Advanced Tire for convenience on January 26, 2026.
The Fleet Management Department is requesting an allocation of $460,000 to adequately cover projected expenditures for tires and tire-related services and repairs through Fiscal Year 2025-26, utilizing this contract.
FISCAL IMPACT:
Funds are encumbered/available in account 001-025-523-519-51-46010 - Fleet Repair and Maintenance.
PROCUREMENT REVIEW:
These goods were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny