Title
Caterpillar Machine Maintenance and Rebuild Services (Ordinance S-46277)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Empire Southwest, LLC to provide maintenance and rebuild services on Caterpillar equipment. This contract will have an aggregate value of $10.2 million. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department is responsible for the repairs and maintenance of 25 Caterpillar units at the City’s State Route 85 (SR85) landfill and transfer stations. SR85 and transfer stations rely exclusively on Caterpillar machinery in their daily operations to ensure equipment is operational and meet federal and state laws regarding disposal of contained collection materials. These sites depend on full time Caterpillar certified technicians to provide daily maintenance, lubrication, cleaning and repair work of the equipment. These services are essential to maximizing fuel efficiency, controlling costly repairs, and minimizing downtime to operations. The equipment maintained through this contract includes excavators, front loaders, small wheel loaders, compactors and additional equipment that is critical for landfill operations to safely and properly dispose of waste at the landfills.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as the result of a determination memo citing that there is only one source for these essential parts, accessories and service. Empire Southwest is the only authorized distributor of Caterpillar parts, accessories and is the sole vendor for Original Equipment Manufacturer (OEM) Caterpillar repairs for the State of Arizona.
Contract Term
The initial one-year contract term shall begin on or about Jan. 15, 2020, with four option years in increments of up to one year, with a total contract option term of five years.
Financial Impact
This contract will have a total aggregate amount not to exceed $10.2 million over the life of the contract. Funds are available in the Public Works Department's budget.
Locations
North Gateway Transfer Station is located at 30205 N. Black Canyon Hwy.
27th Avenue Transfer Station is located at 3060 S. 27th Ave.
SR85 Landfill is located at 28633 W. Patterson Road, Buckeye
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.