7-IFB 26-1-20700R1 Sec4 SOW.pdf

Madison County Transit Tires Leasing for Heavy-Duty Transit Buses No. 26-1-20700R1

SECTION 4. SCOPE OF WORK

4.1 Overview

The Contractor shall provide services associated with leasing heavy-duty transit bus tires.

4.2 Start-up Requirements

The contract between the Contractor and the Owner will have thirty (30) days for start-up beginning at contract award. The following are the start-up requirements for this contract:

a) The Contractor will be required to provide a minimum of thirty (30) tires of each size in preparation for use.

b) The Owner will not proactively remove tires that it currently owns and meet DOT and the Owner’s standards to install lease tires.

c) Lease tires will be installed on units as a full set when appropriate tire replacement has been reached on each unit.

d) The Owner will not run a mix of Owner owned and Contractor leased tires on a unit unless required for a short period if lease tires become unavailable.

e) The Owner will keep track manually and with its fleet maintenance software when lease tires are installed with the date and mileage on any unit.

4.3 Material Requirements

All tires provided shall be new, tubeless, bus transit commercial line tires. No recaps will be accepted.

Tires described will be used to operate heavy duty bus transit operation.

4.4 New Tire Delivery Location and Instructions

Tires shall be delivered F.O.B. Destination to the Owner’s storage containers located adjacent to the maintenance facility. Therefore, in order to have the Owner’s personnel available at the containers to accept delivery, the Contractor shall coordinate a mutually acceptable date and time for delivery with the Owner’s fleet department. The Contractor shall unload the tires from the delivery truck and stack them in the Owner’s warehouse. No additional charge by the Contractor will be allowed for delivery, unloading and stacking.

New tire delivery location: Madison County Transit 1 Transit Way, Gate C Pontoon Beach IL 62040

4.5 Minimum Tire Specifications

The Owner operates two different tire sizes for the heavy-duty fleet. The tires must be all position tires constructed for transit bus use. Both tire sizes must be capable of sustained speeds of 65 MPH. Tires shall be of current production and of the latest design and construction.

Tire #1

Tire Size: 275/70R22.5 Load Range: Minimum J Tread Depth Minimum 21/32nds Ply Rating: 18 Ply steel belted radial tread and sidewall.

Tire #2

Tire Size: 305/70R22.5 Load Range: Minimum L Tread Depth Minimum 21/32nds Ply Rating: 20 Ply steel belted radial tread and sidewall.

4.6 Estimated Tire Use and Fleet Information

The Owner operates various modes of operational equipment but for the basis of this contract, only the heavy-duty fleet is part of the scope of work. The below information is specific to the heavy-duty fleet. The Owner reserves the right to add to, subtract from or modify the information in this specification during the term of a given contract. This could include, but is not limited to:

1. The addition or subtraction of the total number of heavy-duty buses in the Owner’s fleet.

2. Tire size changes.

3. The addition of medium or light duty fleet.

Changes with tire size of fleet type supported will be agreed upon by both the Contractor and the Owner.

Each heavy-duty bus requires two (2) steer tires and four (4) drive tires for a total of 6 tires per unit. Each bus will have forged aluminum disc wheels that the Contractor’s furnished tires will be mounted on. The disc wheels are of industry standard, 10-hole, hub-piloted design. Wheel rims are 15-degree drop center type with a width of 8.25-inch (diameter of 22.5 inches).

The following chart is the basic fleet information as it pertains to each size of heavy-duty buses. All mileage presented are estimates. The Owner will not be held to any minimum or maximum mileage usage during the length of the contract or its contract extensions.

Current Bus Fleet (as of January 2026)

4.7 Tire Rates and Processes for Tire Tracking

Bidders shall provide pricing for all tire sizes needed to fit the Owner’s heavy duty bus fleet listed in this procurement. Standard pricing shall be all inclusive and based on a mileage rate only. The Owner will not allow standard pricing to be based on measured 32nds used. Bidder shall not include any additional charges.

No later than the 15th of each month, the Owner will provide the following for each bus regarding the prior month’s usage:

1. The beginning, ending and total mileage as well as the number of the Contractor’s leased tires per bus. The Owner shall not be required to provide information on individual tires mileage, 32nds, position on the vehicle, tire swaps or any other data.

Cost for damaged tires shall be included in the proposer’s price by 32nds remaining. The remaining mileage for tires shall be determined by multiplying the number of 32nds of an inch of available rubber remaining on each tire by the applicable cost per 32nd then in effect. Tires that have reached the Agency’s replacement criteria or damaged with remaining usable tread and not repairable but have good casing, the Vendor is not to charge a disposal fee. A disposal fee is only applicable when a tire has a damaged casing caused by the owner, that the Vendor cannot reuse.

Year Make Size Fleet Count Tire Size

Total Estimated Annual Tire Usage Per Unit

2020 Gillig 30' 42 275/70R-22.5 52,000 Miles 2012 &

2025 Gillig 40' 28 305/70R-22.5 42,000 Miles

When a tire is not available for inspection to apply the above calculation(s) whether lost, stolen or otherwise missing, destroyed by fire, or involved in an accident, reimbursement shall not be in excess of fifty percent (50%) of the current value of a similar tire, unless the Contractor can provide an auditable accounting of the tire’s accurate mileage just prior to the loss.

4.8 Expiration of Contract

At the conclusion of the 3-year base term or any exercised option year, the Owner may, upon written notice provided no later than ninety (90) days prior to contract expiration, exercise up to two (2) one-year extensions, not to exceed a cumulative total of twenty-four (24) additional months, for the purpose of ensuring continuity of service during a transition to a successor contractor.

Any such extension shall be subject to the following conditions:

a) The rental rate shall be the rate in effect during the period immediately preceding the expiration date.

b) The Owner shall continue to use the leased tires already in service until they are rendered permanently unfit for service.

c) No additional tires, services, supplies, or equipment are to be furnished by the Contractor during such extension unless requested by the Owner and agreed to by the Contractor.

d) In lieu of the run-out option, the Owner may purchase the remaining usable tread depth (“remaining 32nds”) on a pro-rata basis at the rental rate in effect immediately preceding the expiration date.

e) In Lieu of both the purchase of remaining 32nds and run-out options, used tires that the Contractor and Owner deem boarder line useful, shall discuss if payment is necessary for those tires.

4.9 Sales or Disposal of Tires or Buses

During the term of the contract, if the Owner should sell or in any manner dispose of any of its buses, the Owner will try to replace any lease tires with worn runouts or the purchase of used tires out of contract. If the Owner decides to use lease tires for units going for sale, the Owner will work with the Contractor’s representative to determine the remaining 32nds purchase price of each tire prior to disposal of any equipment. The purchase price will be at the rate or rates in effect at such time. Payment for the lease tires shall be on the basis set forth in the contract. The Contractor shall have the right to request the removal of all serviceable tires on parked or inactive vehicles if they remain parked or inactive for more than ninety (90) days and returned to the Owner’s reserve supply.

4.10 Purchase of New Buses/Equipment

Tires will be supplied by the Vendor to the OE supplier with advanced notice. Any fees incurred from the OEM during delivery shall be paid to the Contractor by the Owner. The Owner shall pay the Contractor the following month for use of the tires during delivery of the bus from the OEM to the Owner’s designated port of delivery if driven under its own power. Any tires lost, stolen, or damaged while in the possession of the OEM bus manufacturer, dealer or seller, or while the bus is being delivered shall be paid for by the Owner.

4.11 Tire Testing

The Owner reserves the right to equip up to 11% of its transit bus fleet with tires obtained from other manufacturers for the purpose of testing.

4.12 Disposal of Tires

The Contractor is responsible for final tire inspection when tires are deemed out of specification by the Owner’s policies prior to the Contractors delivery and receiving representative. The Contractor and Owner will reconcile tires together and agree to findings of tires that have met the Owner’s out of spec policy and damaged tires with remaining usable tread that are unfit for service or repairs. The Contractor will work with the Owner’s Fleet Department representative to schedule a time between Monday through Friday 8:00 am until 3:30 pm, excluding holidays, for reconciliation to be performed will be. The contractor is responsible for the disposal of all their tires which have been deemed out of specification by the Owner’s policy. Disposal must be performed by a licensed scrap tire hauler.

Reconciliation and removal of runout are to be executed every sixty (60) days maximum.

4.13 Owner’s Tire Policies

The Owner’s policy on the removal of tires exceeds that of DOT. Tires are to be removed at 5/32nds for steer and 4/32nds for drive tire positions at the required preventative maintenance or inspection intervals.

The Owner will remove these tires from service and place in storage for tires that are out of spec and need disposal services provided by the Contractor.

4.14 Tire Mileage Accounting

In the event of a change in the tire lease Contractor from the current Contractor, the Owner shall account for tire miles run by the different suppliers/owners by tracking the tires on each unit. Tires from different Contractors will not be mixed on the Owner’s equipment.

4.15 Warranty

The Contractor warrants that all goods and/or services furnished hereunder will be free from defects of material and workmanship, will conform to all applicable samples and specifications and/or drawings. The Contractor’s applicable warranties, together with its service warranties and guarantees, if any, shall run to the Owner. All goods and services will be subject to inspection by an authorized fleet representative within a reasonable time after receipt or completion. At the Owner 's option, the Owner may return any nonconforming or defective goods to the Contractor or require correction or replacement at the Contractor's risk and reasonable expense. Acceptance of goods and services by the Owner or payment shall not relieve the Contractor of its responsibilities there under. Should the Contractor propose any amendments to the Warranty, prior written notice must be given to the Owner. The Owner retains the right to terminate the agreement should the revised terms fail to satisfy the Owner’s requirements.

4.16 Deliverables

The awarded Contractor must provide the following throughout the entire length of the contract and its extensions.

a) The Contractor must contact the Owner’s fleet department, whose name and contact information will be stated in the contract documents, concerning any technical subject or issue with the Vendor’s tires.

b) Any technical topic reports or paperwork generated by the Contractor for the Owner must be submitted to the Owner’s fleet department.

c) The Contractor must be responsible for the physical removal from the Owner’s bus maintenance facility, all of the Con`tractor’s furnished tires judged unfit for further safe service as defined in this specification and as directed by the Owner.

d) The method(s) of data/information transfer between the Owner and the Contractor, and vice versa, must be in a written memo or report format and transmitted electronically.

e) The Contractor must submit a monthly invoice based on the mileage information provided by the Owner from the prior month which must include but not be limited to, monthly mileage total, vehicle mile rate and total price by tire size.

f) It is the Contractor’s obligation to provide spare (“un-mounted”) tires to the Owner’s fleet department when needed. The Owner and the Contractor must maintain a safe minimum inventory level of spare tire stock at thirty-five (35) tires of each size. The Owner may consider it an event of default if the spare tire inventory drops below twenty (20) tires of each size and will, at the Owner’s option, exercise any available remedies up to and including termination of Contract.

4.17 Optional Tire Servicing

Contractors may propose optional service prices to provide personnel, labor and equipment necessary for complete and timely tire service. Optional services may include, but are not limited to, mounting, balancing, repairs and related support services, in accordance with manufacturer’s recommended procedures of warrantied new product tires witch fully comply with all specifications for new tires.

a) All tires mounted on a wheel, new, used or repaired shall be balanced according to the tire balancing instructions in this scope of work.

b) New valve stems for every new tire installed.

c) Upon the Owner’s verbal or written request, Contractor shall pickup tires which may be mounted, unmounted, or a combination of both, usually four (4) or more at a time including/or any tires to be repaired, from the Owner’s fleet maintenance facility located at 1 Transit Way Pontoon Beach, Illinois 62040. Notification shall be made by the Owner’s representative to the Contractor by 10 a.m. for pickup. Pickup shall be no later than 3 p.m. the following day of notification.

Subsequently, tires picked up must be replaced and/or repaired and returned to the Owner’s pickup location by 3p.m. the following business day. All tires replaced or repaired must be ready for installation on the Owner’s vehicles when they are delivered. No additional charge by the Contractor will be allowed for pickup and delivery.

d) All tires shall be dynamically balanced through the use of steel or metal polymer composite weights in compliance and in accordance with manufacturer and industry standards. Under no circumstances will liquid, chemical or powder balancing methods be acceptable.

e) All tire repairs must be in accordance with the manufacturer’s requirements and recommendations. Tire plugs are not acceptable.

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