Title
Cooperative Purchase Agreement: Fleet Tires and Tire Services [Published for 10-day Review on 07/31/2025]
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FileID
File ID: 2025-01395
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) approving the use of National Association of State Procurement Officials (NASPO) cooperative purchase agreement with Southern Tire Mart (NASPO Master Agreement 24158) for the purchase of tires and tire repair services in a total amount not to exceed $6,000,000 to cover the initial term through August 11, 2026, and optional extensions through August 11, 2030; and 2) authorizing the Interim City Manager or designee to execute the purchase specified above provided that sufficient funds are available in the budget adopted for the applicable fiscal year.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract
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Description/Analysis
IssueDetail
The Department of Public Works, Fleet Management Division, oversees the maintenance of all City fleet assets which requires the procurement and maintenance of tires and related services for vehicles used by various City departments. To ensure consistent and continuous services contracts are required to secure replacement tires and comprehensive tire-related services such as re-treading, mounting, dismounting, and balancing. Additionally, the division coordinates emergency roadside tire services to ensure the uninterrupted operation of the City’s fleet, supporting various departmental functions. This contract is essential for maintaining the safety, reliability, and operational status of all City vehicles, from service trucks to emergency response vehicles.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Section 4.04.020, Procurement Policy Section 11.A.2 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to the City Council action. The use of a cooperative purchasing agreement is an exception to competitive bidding requirements. (City Code Section 3.56.240). This item was published for 10-day review on July 31, 2025, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of parts and services are not considered to be a project in accordance with Section 15378(b)(2) of the guidelines.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation:
The Department of Public Works, Fleet Management Division, oversees the procurement and maintenance of tires for vehicles used by various City departments. This includes securing contracts for replacement tires and comprehensive tire-related services such as re-treading, mounting, dismounting, and balancing. The recommended cooperative purchase agreement will be used to provide on-site repair services as needed as well as provide tire inventory to the City as needed to service fleet vehicles and equipment.
When evaluating the best practice for a new contract for tires and related services the following options were considered and evaluated:
1. Continue with past practice of leveraging Sacramento County’s contract.
2. Go out to bid.
3. Have National Automotive Parts Association Integrated Business Solutions (NAPA-IBS) purchase tires and procure services on behalf of the City.
4. Find other cooperative opportunities to leverage.
Each option is viable, but the evaluation considered what would be the most cost effective and efficient option for the City to be mindful of costs departments incur for fleet maintenance and repair.
Option 1 would be utilizing the current vendor that the City has been contracted with and the County recently re-awarded services to. Upon evaluating performance of the contractor, pricing, inventory maintenance and other services offered it was deemed that it would be better to move away from this option. The contractor is not always able to offer inventory needed and is not always able to be responsive to certain needs. Prices leveraged are based solely upon NASPO pricing and no further discounts or offerings are available.
Option 2 requires more time and resources but also doesn’t guarantee with the volume of business the City does that the best pricing would be available for either the tires or related services. Upon checking other entities with stand-alone contracts, not based on cooperative purchasing, this was not deemed as a cost-effective option.
Option 3 is the easiest option as far as effort on City staff’s behalf, however, anything purchased through NAPA/IBS has a cost markup. Even if this option were considered, upon research, vendors are not willing to offer discounts or government pricing to NAPA/IBS even though they would be buying on behalf of the City. This was not deemed as a cost-effective option.
Option 4 is the option pursued and has been found to be the best option for the City at this time. While still using a NASPO based pricing structure, Southern Tire Mart has a unique philosophy regarding government in that they will research pricing and find the best value for government agencies. While NASPO is the base pricing, if a tire is on government pricing schedule at a lower value it will be purchased in that manner, saving the City money. Upon investigation into Southern Tire Mart, it is also a larger company that has larger purchasing power and tools to assist the City compared to other cooperative contracted contractors so availability of stock, pricing, and inventory management are addressed through their standard practices.
Southern Tire Mart also has its own plant to handle all retreads, and the plant is proudly promoted by Bridgestone/Firestone/Bandag themselves as the process for retreading is meticulous and held to high standards. This will not only save the City money (about 50% per tire) when able to retread tires but will ensure that City fleet is still operating at the highest safety standard.
As a result, staff recommends that the Council approve the cooperative purchase contract with Southern Tire Mart.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available in the FY2025/26 Department of Public Works Approved Operating Budget (Fleet Fund, Fund 6501) for the purchase of tires and related services through June 30, 2026. Purchases made after June 30, 2026, are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Southern Tire Mart has a local presence and is an LBE.