DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Purchase of Medium and Heavy Equipment
SUMMARY:
This ordinance authorizes acceptance of contracts with American Material Handling, Inc., Centerline, Nueces Power Equipment, ROMCO Equipment Co. and Vermeer Equipment of Texas to provide City departments with medium and heavy equipment units for a total cost of $440,624.62.
Funding is included in the FY 2018 Equipment Renewal and Replacement Fund (ERRF) Budget in the amount of $402,727.62, and the FY 2018 Airport Operating & Maintenance Fund Budget in the amount $37,897.00.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of ten bids to provide six medium and heavy equipment items for a total cost of $440,624.62. This purchase includes one grounds wood chipper, two trailer mounted thermoplastic applicators, one articulated wheeled loader, one enclosed cab compact excavator and one material handling forklift.
This equipment will be utilized by the Aviation, Parks and Recreation and Transportation and Capital Improvements departments for grounds maintenance, relocation of warehouse materials, 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 six replacement medium and heavy equipment units to meet the needs of the Aviation, 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 this equipment 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. Should the replacement equipment not be purchased, the alternative is to continue to use the existing equipment but incur increased maintenance costs and potential delays in the delivery of essential services for the City of San Antonio.
FISCAL IMPACT:
This ordinance authorizes acceptance of contracts with American Material Handling, Inc., Centerline, Nueces Power Equipment, ROMCO Equipment Co. and Vermeer Equipment of Texas to provide City departments with medium and heavy equipment units for a total cost of $440,624.62.
Funding is included in the FY 2018 Equipment Renewal and Replacement Fund (ERRF) Budget in the amount of $402,727.62, and the FY 2018 Airport Operating & Maintenance Fund Budget in the amount $37,897.00.
RECOMMENDATION:
Staff recommends the approval of five contracts to purchase six medium and heavy equipment units from American Material Handling, Inc. for a cost of $37,897.00; Centerline for a cost of $199,388.62; Nueces Power Equipment for a cost of $134,474.00, ROMCO Equipment Co. for a cost of $30,865.00; and Vermeer Equipment of Texas for a cost of $38,000.00; for a total cost of $440,624.62.
This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.