Title
Portable Construction Equipment - 041719-TER (Ordinance S-47877)
Description
Request to authorize the City Manager, or his designee, to enter into a cooperative participating agreement with H&E Equipment Services, Inc., the authorized local vendor for TEREX USA, LLC to purchase portable construction equipment and services for the Public Works Department. A cooperative contract was established by Sourcewell under solicitation number 041719-TER. Further request authorization for the City Controller to disburse all funds related to this item. The aggregate contract value will not exceed $150,000.
Report
Summary
This agreement is required by the Public Works Department to purchase new replacement portable construction equipment and services including mobile elevated work platforms, telescopic booms, articulated booms, trailer mounted booms, scissor lifts, material lifts, personnel lifts, telehandlers and light towers for citywide use. Currently, there are six lifts in service assigned to four departments that have exceeded their 12-year life cycle; one with Police, three with Fire, one with the Convention Center, and one with Water Services. This agreement would support the immediate and any future needs of the City. Approximately 85 percent of the contract spend is used by enterprise funds.
The use of this cooperative will provide the City national discounts on these products. Additionally, review of pricing and availability from registered small and local businesses indicates that this cooperative contract offers the best value to the City.
Upon City Council approval of this item, a purchasing agreement incorporating the City’s terms and conditions will be fully executed between the referenced vendor and the City.
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 competitive processes consistent with the City's procurement processes, as set forth in the Phoenix City Code, Chapter 43.
A cooperative agreement was established by Sourcewell under agreement number 041719-TER and covers the purchase of portable construction equipment as required by the Public Works Department. Agreement 041719-TER between Sourcewell and TEREX USA, LLC was awarded on June 17, 2019 and includes terms that allow the City to enter into a linking agreement directly with the local dealer/distributor. TEREX USA, LLC directed the City to contract directly with H&E Equipment Services, Inc. to receive the pricing found in Agreement 041719-TER. H&E Equipment Services, Inc. has agreed to be bound by the City’s terms and conditions and the terms of Agreement 041719-TER.
Both the American Bar Association and National Institute of Government Purchasing endorses the use of Cooperative Agreements by municipalities and other public institutions. An established best practice in government procurement, Cooperative Agreements provide extensive benefits to procurement officials by leveraging volume purchasing for maximum cost benefit and ensuring best value.
The Assistant Finance Director recommends that the cooperative participating agreement with H&E Equipment Services, Inc. be accepted.
Contract Term
The five-year contract term will begin on or about Aug. 25, 2021.
Financial Impact
The aggregate contract value will not exceed $150,000 Funding is available in the Public Works Department’s budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.