DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Purchase of 11 Replacement Street Sweepers
SUMMARY:
This ordinance authorizes the acceptance of a contract with Industrial Disposal Supply Company, LTD. and Cooper Equipment Company to provide the Transportation and Capital Improvements Department with 11 replacement street sweepers for a total cost of $1,889,499.74. Funding for this purchase is available from the Equipment Renewal and Replacement Fund (ERRF).
BACKGROUND INFORMATION:
A. Submitted for City Council consideration and action is the attached tabulation of five bids to replace 10 street sweepers for the Transportation and Capital Improvements Department for a total cost of $1,727,049.74. These units will be purchased from Industrial Disposal Supply Company, LTD. and Cooper Equipment Company.
This purchase will provide 10 replacement street sweepers for the Transportation and Capital Improvements Department. The life expectance of the new equipment is 96 months. The sweepers will be used to sweep debris from City streets.
The Transportation and Capital Improvements Department's fleet of 19 street sweepers, within the Storm Water Division, is comprised of regenerative air type and mechanical broom sweepers. Regenerative air sweepers utilize a combination of forced air and suction to pick up debris from the roadway surface and force it into the sweeper hopper, whereas mechanical broom sweepers rely on the sweeping broom to pick up and convey debris into the hopper. The department assessed street sweeping needs over the past few years and through demonstration and evaluation developed a fleet with a variety of sweeper types to fulfill various street sweeping needs throughout the City.
A sweeper demonstration was held on February 11, 2015 that allowed vendors to demonstrate their sweeper operations to ensure the sweepers met the performance standards outlined in the bid documents. All interested bidders were invited to participate with the equipment they were planning to offer in response to the City's invitation for bid. The Transportation and Capital Improvements street sweeping crews created equal evaluation tracks in order to simulate actual street cleaning situations found throughout the City. The participants each completed the same type of scenarios and each vendor's equipment performance was noted. All participants' sweeper demonstrations were considered acceptable.
Based on thorough research and knowledge of the industry, the Building and Equipment Services Department, Fleet Acquisitions Division could not identify any viable alternative fueled equipment that would be available to meet the current requirements.
Vehicles and equipment that meet their expected life cycle are usually sold at auction but are sometimes traded-in to the selling dealer. If the fleet asset is in the ERRF then the proceeds are returned to the fund. The proceeds are then used to purchase new similar vehicles and equipment for the same department that operated the sold fleet asset. The equipment being replaced is anticipated to be sold at auction.
B. Submitted for City Council consideration and action is the change order for the purchase of an additional replacement street sweeper from Industrial Disposal Supply Company, LTD. for Item 1. Upon completion of the bid process, the Building and Equipment Services Department identified an additional street sweeper requiring replacement. This change order will provide one additional replacement sweeper which will be used by the Transportation and Capital Improvements Department. Funding for this additional replacement sweeper will be paid through the City's ERRF for a total cost of $162,450.00. The life expectancy of the new equipment is 96 months.
ISSUE:
Approval of this contract and change order will provide the Transportation and Capital Improvement Department with a total of 11 replacement street sweepers. The replacement of the street sweepers is consistent with the City's ERRF. The 11 replacement street sweepers will be used to sweep debris from City streets and parking lots. The sweeper units proposed for purchase are newer models of the current fleet. The bid documents required that the quipment conform to the industry's best practice and include model year 2015 or newer engine and hopper equipment, with the latest EPA Tier 4 engine providing the lowest emissions possible. The purchase of these sweeper units will help to improve service delivery as these units are newer and will provide more operational time than the current, older units.
The cab and chassis is covered by a two year unlimited miles warranty. The sweeper body is covered by a one year warranty on parts and labor. Preventative maintenance will be performed by the Solid Waste Management Department, Heavy Fleet Maintenance Division.
Due to the lack of small, minority, and/or women businesses available to provide these goods, the Small Business Economic Development Advocacy Program did not apply to this solicitation.
Industrial Disposal Supply Company, LTD. and Cooper Equipment Company - The recommended awards are to the lowest responsive bidders, who are also local businesses. Therefore, application of the Local Preference Program was not required.
The Veteran-Owned Small Business Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current street sweepers scheduled for replacement have met or will meet their age and or mileage requirement cycles before they are replaced. The replacement date is considered the optimum time for replacement in that delay of the acquisition could result in the vehicles incurring higher maintenance cost as a result of age or high mileage. This could impact the City's ability to provide essential services to the residents of San Antonio.
FISCAL IMPACT:
The purchase of these 11 replacement Street Sweepers is for a total cost of $1,889,499.74 and will be funded through the City's ERRF.
RECOMMENDATION:
Staff recommends the approval to purchase 9 street sweepers from Industrial Disposal Supply Company, LTD. for a cost of $1,462,050.00 and 2 street sweepers from Cooper Equipment Company for a cost of $427,449.74 for a total cost of $1,889,499.74. The purchase of these sweeper units will help to improve service delivery as these units are newer, conform to industry best practices, and will provide more operational time than the current, older units.
These contracts are procured on the basis of low bid and a Contracts Disclosure form is not required.