DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
Purchase of Heavy Equipment (2)
SUMMARY:
This ordinance authorizes acceptance of contracts with Marentco, Inc., d/b/a Tejas Equipment Sales, Waukesha-Pearce Industries, H & V Equipment Services, Hotsy Equipment Company, Cooper Equipment Company and Vermeer Texas-Louisiana to provide heavy equipment for a total cost of $1,692,621.00. Funding for this purchase is available from the Equipment Renewal and Replacement Fund, Aviation Operations Fund, and Transportation and Capital Improvements Department General Fund.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached formal bid tabulation of 12 competitive bids to provide 13 heavy equipment units for a total cost of $1,692,621.00. This equipment will be utilized by the Aviation, Parks & Recreation, Transportation and Capital Improvements departments for various construction and/or repair projects throughout the City.
Low responsive bids for items 1, 2, 3, 6, 8, 10 and 11 are recommended for award to Marentco, Inc., d/b/a Tejas Equipment Sales, Waukesha-Pearce Industries, Inc., H & V Equipment Services, Hotsy Equipment Company, Cooper Equipment Co., all local businesses, therefore; application of the Local Preference Program (LPP) was not required. Item 12 is recommended for award to Vermeer Texas-Louisiana, non-local business. There were no bids submitted from local bidders for this item; therefore, the Local Preference Program was not applied.
The Invitation for Bid (IFB) was evaluated based on the published bid specifications. The apparent low bid for Item 5 was submitted by Associated Supply Co., Inc. (ASCO) who proposed one (1) speed forward and one (1) speed reverse transmission, however, this did not meet the minimum three (3) speeds forward and three (3) speeds reverse requirement and was deemed not as specified. As there were no additional bids for this item, it was deleted and will be rebid at a later time. The apparent low bid for items 6 and 11 were submitted by Nueces Power Equipment whose loader offered a tipping load of 17,970 lbs. which did not meet the 20,000 lbs. minimum requirement. The low responsive bid for items 6 and 11 was submitted by H & V Equipment Services.
The table below summarizes Local Preference information regarding items 1 - 15. Application of the Local Preference Program was not required; therefore, there is no additional cost to the City.
|
Item Number |
Item |
Vendor |
Local Award |
Local Preference Applied |
|
1 |
8K Propane Forklift |
Marentco, Inc.; d/b/a Tejas Equipment Sales |
Yes |
No |
|
2 |
Diesel Dozer Construction Tracked |
Waukesha-Pearce Industries |
Yes |
No |
|
3 |
Diesel Dozer Construction Excavator |
Waukesha-Pearce Industries |
Yes |
No |
|
4 |
Deleted |
Deleted |
N/A |
N/A |
|
5 |
Deleted |
Deleted |
N/A |
N/A |
|
6 |
3 Cubic Yard Wheel Loader w/Attachments |
H&V Equipment Services |
Yes |
No |
|
7 |
Deleted |
Deleted |
N/A |
N/A |
|
8 |
Trailer Mounted Pressure Washer |
Hotsy Equipment Company |
Yes |
No |
|
9 |
Deleted |
Deleted |
N/A |
N/A |
|
10 |
25K Asphalt Distributor |
Cooper Equipment Co. |
Yes |
No |
|
11 |
3 Cubic Yard Wheel Loader |
H&V Equipment Services |
Yes |
No |
|
12 |
Trailer Mounted Brush Chipper |
Vermeer Texas - Louisiana |
N/A |
N/A |
|
13 |
Deleted |
Deleted |
N/A |
N/A |
|
14 |
Deleted |
Deleted |
N/A |
N/A |
|
15 |
Deleted |
Deleted |
N/A |
N/A |
This purchase will provide 13 units to the City’s fleet: one unit for Aviation; one unit for Parks & Recreation; and eleven units for the Transportation and Capital Improvements department.
Disposition of Equipment: Vehicles and equipment that meet their expected life cycle are usually sold at auction but may also be traded-in to the selling dealer. The equipment that is being replaced will be sold at auction. If the Fleet asset is in the City’s fleet replacement program then the proceeds are returned to the Equipment Renewal and Replacement Fund (ERRF). The proceeds are then used to purchase new similar vehicles and equipment.
The Invitation for Bid (IFB) included Item 1, one 8,000 lbs. Forklift that will be fueled by Liquid Propane Gas (LPG). The remaining items are diesel powered with the exception of the trailer mounted pressure washer. Based on thorough research and knowledge of the industry, the Building and Equipment Services Department could not identify any viable alternative fueled equipment that would be available to meet the current requirements.
ISSUE:
These contracts will provide 13 heavy equipment units to meet the needs of the Aviation, Parks and Recreation, and Transportation and Capital Improvements departments. These include one forklift, three diesel dozer construction excavators, three wheel loaders, three asphalt distributor one trailer mounted pressure washer and two trailer mounted self feeding brush chippers.
The units will be used by the departments for a variety of tasks to include: loading and off loading of heavy materials, construction projects, roadway repairs, excavating, storm water infrastructure maintenance, power washing and additional projects throughout the City.
All units are covered by a minimum 12 months/unlimited hours or miles warranty that will start on the day each unit is placed in service. The life expectancy for these heavy equipment units range from 96 to 120 months.
Due to the lack of small, minority, and/or women businesses available to provide these goods, the SBEDA Program did not apply to this solicitation.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current heavy equipment units scheduled for replacement have met their age and/or mileage requirement cycles and are no longer economically feasible to repair. If the replacement equipment is not purchased, necessary field work may be compromised and thus create the potential of delays in delivery of essential services to the residents of San Antonio. The alternative is to continue to use the heavy equipment currently available and incur increasing maintenance costs, thus compromising delivery of services for the entire city.
FISCAL IMPACT:
These contracts are for the purchase is for 13 heavy equipment units for a total cost of $1,692,621.00.
Eleven units are replacements to the City’s fleet and will be funded through the City’s Equipment Renewal and Replacement Fund (ERRF) for a cost of $1,523,766.00.
One unit will be funded by the Aviation Operation Fund for a cost of $122,027.00 and one unit will be funded by Transportation and Capital Improvements Department General Fund for a cost of $46,828.00.
The Equipment Renewal and Replacement Fund charges a monthly lease rate to each respective department/fund the entire time a department/fund has possession of a vehicle or equipment. When the vehicle or equipment reaches the end of its life-cycle or the contractually obligated period the replacement fund provides the financial resources for its like replacement. The replacement of these units is consistent with the City’s vehicle replacement program.
RECOMMENDATION:
Staff recommends the approval six contracts to purchase 13 heavy equipment units from Marentco, Inc., d/b/a Tejas Equipment Sales for a cost of $46,828.00; Waukesha-Pearce Industries, Inc. for a cost of $836,474.00; H & V Equipment Services for a cost of $353,335.00; Hotsy Equipment Company for a cost of $10,000.00; Cooper Equipment Co., for a cost of $351,804.00 and Vermeer Texas-Louisiana for a cost of $94,180.00. The total cost for the 13 units to be purchased is $1,692,621.00.
This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.