DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
Heavy Equipment
SUMMARY:
This ordinance authorizes acceptance of bids from Nueces Power Equipment, Holt Cat and Associated Supply Company to provide 14 replacement units for existing heavy equipment for a total of $2,215,264.00. 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 tabulation of nine competitive bids to provide for the replacement of 14 pieces of heavy equipment for a total cost of $2,215,264.00. The equipment includes wheeled articulated loaders, tracked milling machine, wheeled motor graders, six ton double drum vibratory roller, loader backhoes and a dozer crawler.
Low bids for items 1, 6, 7 and 8 are recommended for award to Nueces Power Equipment and Associated Supply Company, which are non-local businesses. In accordance with the Local Preference Program, no local preference was applied since the local bidder is not within 3% of the recommended lowest non-local bidder.
The low bid for item 2 is recommended for award to Nueces Power Equipment, which is a non-local business. There were no responsive bids submitted from local bidders for this item, therefore the Local Preference Program was not applied.
Items 3 and 4 are recommended for award to Holt Cat who is the low responsive bidder and a local business. Therefore, application of the Local Preference Program (LPP) was not required.
This equipment will be utilized by the Parks & Recreation, Solid Waste Management, and Transportation & Capital Improvements Departments for material and earth handling functions throughout the City.
ISSUE:
This contract will provide two units for the Parks & Recreation Department, one unit for the Solid Waste Management Department, and eleven units for the Transportation & Capital Improvements Department. All 14 pieces of heavy equipment are replacements for existing equipment.
The life expectancy for these heavy equipment machines is 120 months.
This equipment has a minimum of one year / 1,000 hours parts and labor warranty for any manufacturer’s defects for items of its manufacture. The warranty shall commence from the date the City accepts delivery of vehicle.
The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
Should this contract not be approved, the Parks & Recreations, Solid Waste Management, and Transportation & Capital Improvements Departments will not be able to provide essential services to the roads, highways, and public parks of San Antonio. All of the replaced equipment has met or will meet its age or hour requirement cycles for replacement. The replacement date is considered the optimum time for replacement as delaying the acquisition could make the vehicles no longer economically feasible to repair and could lead to the departments’ inability to provide essential services to the residents of San Antonio.
FISCAL IMPACT:
The total cost of these contracts is $2,215,264.00 of which will be funded from the Equipment Renewal and Replacement Fund.
RECOMMENDATION:
Staff recommends the approval of three contracts to purchase 14 heavy equipment machines from Nueces Power Equipment for a cost of $1,024,420.00, Holt Cat for a cost of $850,794.00 and Associated Supply Company for a cost of $340,050.00. The total cost of the 14 replacement units is $2,215,264.00.
These contracts were procured on the basis of low bid and a Contracts Disclosure form is not required.