DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Heavy Equipment
SUMMARY:
This ordinance authorizes acceptance of contracts with Associated Supply Company, Barco Pump Company, Quality Equipment Co., Waukesha-Pearce Industries, Inc. and Frank J. Zamboni & Co., Inc. to provide City departments with heavy equipment for a total cost of $942,444.56. Funding for this purchase is available from the Equipment Renewal and Replacement Fund (ERRF).
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached bid tabulation of 8 competitive bids to provide 11 pieces of heavy equipment for a total cost of $942,444.56. This equipment will be utilized by the Convention and Sports Facilities, Solid Waste Management, Parks & Recreation and Transportation and Capital Improvements departments for various construction and/or repair projects throughout the City.
Items 1, 3 and 8 are recommended for award to Associated Supply Company and Frank J. Zamboni & Company, Inc. who are both non-local businesses. There were no local bidders for these items; therefore, the Local Preference Program (LPP) was not applied.
Item 5 is recommended for award to Barco Pump Company, a non-local business, since the local bidder is not within 3% of the recommended non-local bidder.
Items 6 and 7 are recommended for award to Quality Equipment Co. and Waukesha-Pearce Industries, Inc., who are both local businesses therefore; application of the LPP was not required.
Items 2 and 4 were deleted and will be bid at a later time.
The table below summarizes Local Preference information regarding items 1 - 8:
Item Number |
Vendor |
Local Award |
Local Preference Applied |
Cost Differential |
1 |
Associated Supply Company |
No |
No |
$0.00 |
2 |
Deleted |
N/A |
N/A |
$0.00 |
3 |
Associated Supply Company |
No |
No |
$0.00 |
4 |
Deleted |
N/A |
N/A |
$0.00 |
5 |
Barco Pump Company |
No |
No |
$0.00 |
6 |
Quality Equipment Co. |
Yes |
No |
$0.00 |
7 |
Waukesha-Pearce Industries |
Yes |
No |
$0.00 |
8 |
Frank J. Zamboni & Co. |
No |
No |
$0.00 |
Total |
|
|
|
$0.00 |
The contracts will provide 11 units to the City's fleet including 1 for Convention and Sports Facilities, 2 for Parks and Recreation, 3 for Solid Waste Management and 5 for Transportation and Capital Improvements. All 11 units are replacements to the City's fleet and will be funded through the City's ERRF.
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 ERRF. The proceeds are then used to purchase new similar vehicles and equipment.
The Invitation for Bid included two forklifts, 6,000 lbs. and one ice resurfacing machine fueled by Liquid Propane Gas. The remaining items are diesel powered. The propane alternative was not feasible for these items because it is not available in the marketplace or because the operational needs of the equipment did not allow it. There is no other viable alternative fueled equipment that would be available to meet the current requirements.
ISSUE:
The contract will provide 11 heavy equipment items to meet the needs of four City of San Antonio departments. These include two forklifts, two loader/backhoes, three trailer mounted trash pumps, two skid steer loaders with attachments, one tracked dozer/tractor and one ice resurfacing machine.
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 and parking lot repairs, excavating, loading and off loading soils, landfill maintenance, storm water infrastructure maintenance, ice rink resurfacing and additional projects throughout the City.
All units are covered by a minimum 12 months/unlimited hours warranty that will start on the day each unit is placed in service. The life expectancy for these heavy equipment units range from 60 to 240 months.
The Small Business Economic Development Advocacy Ordinance requirements were waived due to the lack of qualified SMWBE's available to provide the goods and services.
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 units currently available and incur increasing maintenance costs, thus compromising services for the entire city.
FISCAL IMPACT:
The purchase is for 11 heavy equipment items for a total cost of $942,444.56 and will be funded from the ERRF.
The ERRF 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 to purchase 11 heavy equipment items from Associated Supply Company, Barco Pump Company, Quality Equipment Co., Waukesha-Pearce Industries, Inc. and Frank J. Zamboni & Co. Inc. for a total cost of $942,444.56.
These contracts were procured on the basis of low bid and Contracts Disclosure Forms are not required.