DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Purchase of Heavy Equipment
SUMMARY:
This ordinance authorizes acceptance of contracts with Associated Supply Company, Inc. dba, ASCO Equipment Co., Holt Texas, LTD, and ROMCO Equipment Co. to provide City departments with heavy equipment units for a total cost of $323,081.00. Funding for this purchase is available in the FY 2017 Equipment Renewal and Replacement Fund Budget.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of thirteen bids to provide four heavy equipment items for a total cost of $323,081.00. This purchase includes one off road construction material handling forklift, one enclosed tracked skid loader with grappler and two 7 ton double drum vibratory rollers.
This equipment will be utilized by the Parks and Recreation and Transportation and Capital Improvements departments for various construction and/or repair projects throughout the City.
The Invitation for Bid (IFB) was evaluated based on the published bid specifications.
ISSUE:
These contracts will provide four replacement heavy equipment units to meet the needs of the Parks and Recreation and Transportation and Capital Improvements departments. The replacement of these units is consistent with the City’s Equipment Replacement and Renewal Fund (ERRF) program.
All units are covered by a minimum 12 months warranty that will start on the day each unit is placed in service. The life expectancy for these heavy equipment units is 120 months.
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:
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 currently available and incur increasing maintenance costs and down time, thus possibly compromising services for the entire city.
FISCAL IMPACT:
All units are replacements to the City’s fleet and will be funded through the FY 2017 Equipment Renewal and Replacement Fund (ERRF) Budget for a total cost of $323,081.00.
RECOMMENDATION:
Staff recommends the approval of three contracts to purchase four heavy equipment units from Associated Supply Company, Inc. dba, ASCO Equipment Co. for a cost of $76,000.00; ROMCO Equipment Co for a cost of $33,673.00; and Holt Texas, LTD for a cost of $213,408.00; for a total cost of $323,081.00.
This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.