Title
Case Motor Graders - Contract Recommendation (Ordinance S-46439)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Titan Machinery, Inc. for purchase of Case motor graders. This contract will have an aggregate amount not to exceed $1,100,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department has identified five older motor graders in the fleet that are experiencing excessive downtime with higher than average maintenance costs. These units will be replaced over the next five years. Case is the only manufacturer to produce a grader small enough to use in all alleyways. The Street Transportation Department uses these graders for general alley maintenance and draining ditch maintenance.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as the result of a determination memo citing sole source. Titan Machinery, Inc. is the only authorized dealer of Case construction equipment in the State of Arizona.
Titan Machinery, Inc: $186,745.52 per unit
Contract Term
This contract will begin on or about April 1, 2020, for an initial one-year term, with four option years to be exercised in increments of up to one year, for a total contract term of five years.
Financial Impact
This contract will have an aggregate expenditure not to exceed $1,100,000 over the life of the contract, including taxes and contract price increases due to inflation in the option years. Funds are available in the Street Transportation Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Karen Peters and the Street Transportation and Public Works departments.