Title
Contract for Heavy Equipment, Parts, Accessories, Supplies and Related Services - National Intergovernmental Purchasing Alliance Cooperative Contract (Ordinance S-44455)
Description
Request to authorize the City Manager, or his designee, to access the National Intergovernmental Purchasing Alliance (National IPA) Cooperative Contract and to enter into a contract with Empire Southwest, LLC to purchase heavy equipment, parts, accessories and related services. The aggregate contract value will not exceed $20,000,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department plans to acquire specialty off-road Caterpillar equipment to replace aging units. The contract will accommodate replacement of D9 tractors, motor graders, hydraulic excavators, wheel loaders and generators. The equipment is used by departments such as the Street Transportation, Information Technology Services, Aviation, Library, and Public Works departments to provide essential citywide services to Phoenix residents. The equipment is heavily used and needed to perform street maintenance and repairs, facility upkeep, landfill operations and maintenance, and solid waste services at two transfer stations.
Procurement Information
In accordance with Administrative Regulation 3.10, a participating agreement is required when the City uses a cooperative agreement from another public agency. The contract was awarded through a competitive process consistent with the City's procurement processes, as set forth in the Phoenix City Code, Chapter 43. Cooperative agreements allow the City to benefit from national government pricing and volume discounts. The National IPA contract covers Caterpillar heavy equipment, parts, and related services and was awarded May 1, 2017. Empire Southwest, LLC is the only Caterpillar dealer authorized to sell equipment and offer related services in Arizona under the Caterpillar dealer agreement for establishing regional territories.
Contract Term
The five-year contract term shall begin on or about April 15, 2018.
Financial Impact
The aggregate contract value will not exceed $20,000,000 or an estimated annual average of $4,000,000. Funds are available in the Street Transportation, Information Technology Services, Aviation, Library, and Public Works departments' budgets.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters, Mario Paniagua, and Deanna Jonovich, and the Street Transportation, Information Technology Services, Aviation, Library, and Public Works departments.