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RESOLUTION AUTHORIZING A NON-COMPETITIVE DESIGNATED PURCHASE PURSUANT TO SECTION 2-8.1(B)(3) OF THE COUNTY CODE BY A TWO-THIRDS VOTE OF THE BOARD MEMBERS PRESENT; APPROVING CONTRACT MODIFICATION NO. 2 TO IMPLEMENT PRICE ADJUSTMENTS AND AUTHORIZING ADDITIONAL EXPENDITURE AUTHORITY OF $870,000.00 FOR A TOTAL MODIFIED CONTRACT AMOUNT OF $35,932,395.00 FOR CONTRACT NO. EVN0004711, TIRE PURCHASES AND RELATED SERVICES, FOR THE PEOPLE AND INTERNAL OPERATIONS DEPARTMENT; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXERCISE ALL PROVISIONS OF THE CONTRACT, INCLUDING ANY CANCELLATION OR EXTENSIONS, PURSUANT TO SECTION 2-8.1 OF THE CODE AND IMPLEMENTING ORDER 3-38

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. This Board finds it is in the best interest of Miami-Dade County to authorize a non-competitive designated purchase pursuant to section 2-8.1(b)(3) of the County Code, by a two-thirds vote of the Board members present, and approve Contract Modification No. 2, in substantially the form attached and made a part hereof, to implement price adjustments and authorize additional expenditure authority of $870,000.00 for a total modified contract amount of $35,932,395.00 for Contract No. EVN0004711, Tire Purchases and Related Services, for the People and Internal Operations Department.

Section 2. This Board authorizes the County Mayor or County Mayor�s designee to exercise all provisions of the contract, including any cancellation or extensions, pursuant to section 2-8.1 of the County Code and Implementing Order 3-38. A copy of the contract document is on file with and available upon request from the Strategic Procurement Department.

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Date:

To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Recommendation for Approval of a Non-Competitive Designated Purchase for Additional Expenditure Authority for Tire Purchases and Related Services

STAFF RECOMMENDATION
Executive Summary
This item is for additional expenditure authority and the approval of Modification No. 2 to amend pricing by thirteen percent for Fedan Corp. dba Fedan Tire Co. (Fedan) due to the impact of tariffs for the People and Internal Operations Department (PIOD). This contract is utilized for the purchase of tires and related services, such as flat tire repairs, tire recapping and retreading, and solid tire filling, for multiple County departments. The contract supports the County�s fleet and emergency vehicles, helping to ensure the vehicles remain in safe and reliable operating condition.

Fedan was awarded 48 tire products and services; however, the vendor is only requesting a price adjustment for 12 tire products to offset increased costs associated with tariffs affecting rubber used in tire recapping/retreading under the contract. Notably, even with the proposed price increase, Fedan continues to offer the lowest pricing for their awarded items, as compared to the other awarded vendors. This item seeks authorization to adjust pricing for the affected items, as tariff-related price adjustments were not contemplated at the time of contract development.

Recommendation
It is recommended that the Board of County Commissioners (Board) approve a non-competitive designated purchase to authorize the approval of Modification No. 2. to implement price adjustments and additional expenditure authority in the amount of $870,000, pursuant to Section 2-8.1(b)(3) of the Miami-Dade County Code, by a two-thirds vote of the Board members present, under Contract No. EVN0004711, Tire Purchases and Related Services. Modification No. 2 will adjust the prices for 12 tire products under the contract by thirteen percent.

Background
This competitively established contract was awarded on February 4, 2025 by the Board via Resolution No. R-91-25 in the amount of $35,062,395 for a five-year term. County departments use this contract to purchase new tires and related services to maintain operability of the County fleet and emergency vehicles.

Eight local vendors were awarded under this contract to provide tires and related services. Fedan requested a price adjustment due to increased rubber costs resulting from tariffs issued by the federal government. These tariffs have driven up manufacturing and supply costs, necessitating a pricing adjustment to ensure continuity of service and product availability for County departments. Current contract pricing makes it difficult for Fedan to continue providing the items and services without incurring financial hardships. The requested adjustment will allow the vendor to continue delivering tire-related products and services. The other awarded vendors have pricing higher than Fedan�s and have indicated they are not impacted by these tariffs, as their products are sourced domestically within the United States.

Additional allocation is being requested for PIOD to offset the increased costs resulting from tariff-related price impacts. Due to these increases, the original allocated amount is no longer sufficient to cover the anticipated needs. The requested amount is based on the estimated number of tire recapping and retreading services needed for the remainder of the contract term.

Competition is not practicable as multiple vendors have verified disruptions to the international supply chain due to tariffs. Although some vendors source products domestically, those options are generally more expensive than internationally sourced alternatives. Issuing a new solicitation may result in higher prices than the current contract and a greater fiscal impact to the County. Accordingly, it is in the County�s best interest to approve this price adjustment pursuant to Section 2-8.1(b)(3) of the Miami-Dade County to continue purchasing new tires and various tire related services.

Scope
The impact of this item is countywide in nature.

Delegated Authority
If this item is approved, the County Mayor or County Mayor�s designee will have the authority to exercise all provisions of the contract, including cancellation or extensions, pursuant to Section 2-8.1 of the County Code and Implementing Order 3-38.

Fiscal Impact/Funding Source
The contract expires on February 28, 2030, and has an existing cumulative allocation of $35,062,395. If this request is approved, the contract will have a modified cumulative allocation of $35,932,395. The requested increase in expenditure authority is based on the anticipated number of tire recapping and retreading services for the remaining duration of the contract, as well as the cost differential between the current and adjusted prices if this request is approved.

Department Existing Cumulative
Allocation Additional Allocation Requested Modified Cumulative Allocation Funding Source Budgeted
PIOD $23,800,000 $870,000 $24,670,000 Internal Service Funds FY 2025-26 Adopted Budget, Vol. 3, Page 339, Operating Expenditures, Other Operating, Contractual Services
Multiple $11,262,395 $0 $11,262,395 Multiple Multiple
Total $35,062,395 $870,000 $35,932,395

Track Record/Monitor
Robert Mendoza of the Strategic Procurement Department (SPD) is the Procurement Contracting Manager.

Awarded Vendors
Vendor Principal Address Local Address Principal

Balado National Tires, Inc. 1633 NW 27 Avenue Miami, FL Same Orlando L. Hidalgo

Central Tire Corp 8275 NW 74 Street
Miami, FL Same Sergio Leyva

Dan Callaghan Enterprises, Inc. 4421 12 Street Court East
Bradenton, FL 3600 Northwest 54 Street
Miami, FL Todd Severson

Earl W. Colvard, Inc. 816 S Woodland Boulevard
Deland FL 3850 NW 30 Avenue
Miami, FL Earl W. Colvard

Fedan Corp. dba Fedan Tire Co. 115 W 22 Street
Hialeah, FL Same Felix Jose Sanchez

KM Pedersen Enterprises, Inc. (SBE) 406 Washington Avenue
Homestead, FL Same Michele Pedersen
Pelar Trading Corporation (SBE) 581 E 33 Street
Hialeah, FL Same Danitza Miranda

Tiresoles of Broward, Inc. 1865 S Powerline Road
Suite C
Deerfield Beach, FL 7800 NW 103 Street
Hialeah, FL Stephen H. Stafford

Due Diligence
Pursuant to Resolution No. R-187-12, due diligence was conducted in accordance with SPD�s Procurement Guidelines to determine vendor responsibility, including verifying corporate status and that there are no performance and compliance issues through various vendor responsibility lists and a keyword internet search. The lists that were referenced included convicted vendors, debarred vendors, delinquent contractors, suspended vendors, and federal excluded parties. There were no adverse findings relating to vendor responsibility.

Applicability of Ordinances and Contract Measures
� The two percent User Access Program applies where permitted by funding source.
� The Small Business Enterprise Bid Preference and Local Preference applied where permitted by funding source.
� The Living Wage Ordinance does not apply.

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Carladenise Edwards
Chief Administrative Officer