DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: All
SUBJECT:
Heavy Equipment
SUMMARY:
This ordinance authorizes acceptance of contracts with Asco Inc., Briggs Equipment, Anderson Machinery Company, Holt Cat, Cooper Equipment Co., Doggett Freightliner of South Texas, assignee of Freightliner of San Antonio, LTD and Grande Truck Center to provide City departments with heavy equipment for a total cost of $2,951,882.00. Funding for this purchase is available from the Equipment Renewal and Replacement Fund, Solid Waste Management Department Operating Fund paid through a Municipal Lease and the Aviation Operating and Maintenance Fund.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached bid tabulation of 22 competitive bids to provide 17 heavy equipment items for a total cost of $2,951,882.00. This equipment will be utilized by the Aviation, Convention and Sports Facilities, Parks and Recreation, Solid Waste Management and Transportation and Capital Improvements departments.
The Invitation for Bid (IFB) was evaluated based on published bid specifications. The low bid for Item 11 submitted by Waukesha-Pearce did not meet the minimum of 76 SAE horsepower and the bid was deemed non-responsive. Items 1A, 1C, 2A, 2B, 3, 4, 7, 16 and 17 were deleted and will be bid at a later time.
In accordance with the Local Preference Program (LPP), Item 14 is recommended for award to Doggett Freightliner of South Texas LLC that has acquired certain assets of Freightliner of San Antonio, LTD. Freightliner of San Antonio, LTD, a local bidder, submitted a bid within 3% of non-local bidder. The LPP award will result in an additional cost to the City of $3,813.00.
Low responsive bids for the remaining items recommended for award to Asco, Inc., Briggs Equipment, Anderson Machinery Company, Holt Cat, Cooper Equipment Co., Doggett Freightliner of South Texas, LLC that has acquired certain assets of Freightliner of San Antonio, LTD and Grande Truck Center are local businesses therefore; application of the LPP was not required.
The table below summarizes Local Preference information regarding Items 1 -17:
Item Number |
Vendor |
Local Award |
Local Preference Applied |
Cost Differential |
1A |
Deleted |
N/A |
N/A |
$0.00 |
1B |
Briggs Equipment |
Yes |
No |
$0.00 |
1C |
Deleted |
N/A |
N/A |
$0.00 |
2A |
Deleted |
N/A |
N/A |
$0.00 |
2B |
Deleted |
N/A |
N/A |
$0.00 |
3 |
Deleted |
N/A |
N/A |
$0.00 |
4 |
Deleted |
N/A |
N/A |
$0.00 |
5 |
Asco, Inc. |
Yes |
No |
$0.00 |
6 |
Anderson Machinery Company |
Yes |
No |
$0.00 |
7 |
Deleted |
N/A |
N/A |
$0.00 |
8 |
Holt Cat |
Yes |
No |
$0.00 |
9 |
Anderson Machinery Company |
Yes |
No |
$0.00 |
10 |
Holt Cat |
Yes |
No |
$0.00 |
11 |
Holt Cat |
Yes |
No |
$0.00 |
12 |
Briggs Equipment |
Yes |
No |
$0.00 |
13 |
Cooper Equipment |
Yes |
No |
$0.00 |
14 |
Doggett Freightliner of South Texas |
Yes |
Yes |
$3,813.00 |
15 |
Grande Truck Center |
Yes |
No |
$0.00 |
16 |
Deleted |
N/A |
N/A |
$0.00 |
17 |
Deleted |
N/A |
N/A |
$0.00 |
Total |
|
|
|
$3,813.00 |
The contracts will provide 17 units to the City's fleet including 2 for Aviation, 1 for Convention and Sports Facilities, 1 for Parks and Recreation, 3 for Solid Waste Management and 10 for Transportation and Capital Improvements. Thirteen units are replacements to the City's fleet and will be funded through the City's Equipment Renewal and Replacement Fund (ERRF), 2 units are additional equipment to be funded by the Solid Waste Management Department Operating Fund paid through a Municipal Lease and 2 units will be funded through the Aviation Operating and Maintenance Fund.
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.
Alternative Fuels:
The Invitation for Bid (IFB) included Item 1 B, Forklift, 8,000 lbs, fueled by Liquid Propane Gas (LPG). 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 17 heavy equipment items to meet the needs of five City of San Antonio departments. These include four wheel drive loaders, forklift, asphalt pavers, pneumatic roller, hydraulic excavator brush chipper, truck with water distribution body, truck with fuel and lube body and self lifting detachable gooseneck trailers.
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, asphalts and base materials, landfill maintenance, storm water infrastructure maintenance 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 vehicles range from 84 to 120 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 Small Business Preference Program does not apply to this contract since it was solicited on or prior to January 15, 2014, the effective date of the program. Additionally, the VOSB Preference Program does not apply to goods/supplies contracts.
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 vehicles are 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 17 heavy equipment items for a total cost of $2,951,882.00 and will be funded from the ERRF, Solid Waste Management Department Operating Fund paid through a Municipal Lease and the Aviation Operating and Maintenance Fund.
The Vehicle and Equipment 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 to purchase 17 heavy equipment items from Asco Inc., Briggs Equipment, Anderson Machinery Company, Holt Cat, Cooper Equipment Co., Doggett Freightliner of South Texas and Grande Truck Center for a total cost of $2,951,882.00.
This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.