DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Purchase of Medium and Heavy Duty Trucks
SUMMARY:
This ordinance authorizes the acceptance of a contract with Doggett Freightliner of South Texas, LLC to provide the Parks and Recreation and Transportation and Capital Improvements Departments with 18 Medium and Heavy Duty Trucks for a total cost of $1,788,060.00, to be funded through the Equipment Replacement and Renewal Fund (ERRF) and Stormwater Operating Fund.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of two bids to provide the Parks and Recreation and Transportation and Capital Improvements Departments with 18 Medium and Heavy Duty Trucks for a total cost of $1,788,060.00. These units will be purchased from Doggett Freightliner of South Texas, LLC on the basis of low competitive bid.
This purchase will provide a total of 18 replacement units, which will consist of 16 fifth wheel tractor trucks and 2 brush chipper trucks for the Parks and Recreation and Transportation and Capital Improvement departments. One fifth wheel tractor truck is a replacement unit for the Parks and Recreation Department for a cost of $84,711.00 and 17 units are for the Transportation and Capital Improvement department for a cost of $1,703,349.00. The fifth wheel tractor trucks will be used to pull heavy trailers to transport heavy equipment and construction materials throughout the City and the 2 brush chipper trucks will be used with a portable brush chipper/shredder for tree trimming and brush shredding. The life expectancy of all equipment is 96 months.
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 will be sold at auction.
ISSUE:
This contract will provide the Parks and Recreation and Transportation and Capital Improvement Departments with 18 replacement units, which will consist of 16 fifth wheel tractor trucks and 2 brush chipper trucks. The replacement of these units is consistent with the City's ERRF.
The cab and chassis of the fifth wheel tractor 35,000 Gross Vehicle Weight Rating (GVWR) truck is covered by two years unlimited miles on the chassis, two years/250,000 miles on the engine and three years unlimited miles on the transmission warranty. The fifth wheel tractor 52,000 GVWR trucks are covered by a one year unlimited miles on the truck, two years/250,000 miles complete engine and five years/500,000 miles major components warranty. The brush chipper trucks are covered by two years unlimited miles on the chassis, two years unlimited miles on the engine and three years unlimited miles on the transmission warranty.
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 recommended award is to the lowest responsive bidder, which is also local business. 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 trucks 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 18 Medium and Heavy Duty Trucks is for a total cost of $1,788,060.00, of which 17 will be funded through the City's ERRF for a cost of $1,697,013.00 and one brush chipper truck will be funded through the Stormwater Operating Fund for a cost of $91,047.00.
RECOMMENDATION:
Staff recommends approval to purchase 16 fifth wheel tractor trucks and 2 brush chipper trucks from Doggett Freightliner of South Texas, LLC for a total cost of $1,788,060.00.
This contract was procured on the basis of low bid and a Contracts Disclosure form is not required.