Title
Original Equipment Manufacturer Parts and Service - 24-FSD-028 - Request for Award (Ordinance S-50295)
Description
Request to authorize the City Manager, or his designee, to enter into separate contracts with RWC International Ltd., Balar Holding Corp., Bingham Equipment Company, Cummins Inc., Norwood Equipment Inc., Rush Truck Centers of Arizona Inc., Velocity Truck Centers DBA Freightliner of Arizona LLC, Empire Southwest LLC, Simpson Norton Corporation, Redsky Fire Apparatus LLC, Sonsray Machinery LLC, and Southwest JCB Inc., H&E Equipment Services, Inc., and Hughes Fire Equipment, Inc. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contracts will not exceed $ 30,949,590.
Report
Summary
This contract will provide local support mechanisms for diverse product lines, which ensures that the City receives the best pricing for Original Equipment Manufacturer (OEM) parts and service. Without access to the OEM dealerships, the Fleet Services Division would experience increased costs and downtime when purchasing parts and service through another mechanism other than the OEM supplier. Equipment that will benefit from this contract includes, but is not limited to, fire apparatus, street sweepers, refuse trucks, off-road equipment, and various heavy-duty trucks and equipment. This equipment is bought and maintained by the Public Works Department and is utilized by multiple departments to provide essential City services.
Procurement Information
In accordance with City of Phoenix Administrative Regulation 3.10. normal competition was waived as the result of a Determination Memo, citing that there is only one source for this essential service and parts. The above-mentioned vendors are the only authorized distributors for the State of Arizona for the product line they carry.
Contract Term
The initial three-year contract term will begin on or about Nov. 1, 2023, with two one-year option years to be exercised in increments of up to one year, with a total contract option term of five years.
Financial Impact
This contract will have an estimated annual expenditure of $6,189,918, with a value not to exceed $30,949,590.
Funds are available in the Public Works Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Works Department.