Title
Contract Recommendation for Original Equipment Manufacturer Vehicle and Equipment Maintenance and Repairs (Ordinance S-45601)
Description
Request to authorize the City Manager, or his designee, to enter into separate contracts with Balar Equipment Company, Bingham Equipment, Cummins Sales and Service, Dadee Manufacturing, Empire Southwest, LLC, Forklift Exchange, Inc., Freightliner of Arizona doing business as Velocity Truck Centers, Norwood Equipment, RDO Equipment Company, Rush Truck Centers, RWC Group, LLC, Simpson Norton Corporation, and Titan Machinery, Inc., to provide service, maintenance and repairs on City-owned vehicles and equipment on an as-needed basis with an aggregate amount not to exceed $35,000,000. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department maintains and repairs approximately 7,500 citywide vehicles and equipment. These units are used by various City departments including the Fire, Public Works, Street Transportation, and Water Services departments. These units include medium-duty vehicles, heavy-duty vehicles, and equipment including street sweepers, vacuum system trucks, refuse and heavy-duty trucks, and construction equipment. These vehicles and equipment are used for field operations and provide essential City services. This contract will help to provide service, maintenance and repairs on vehicles and equipment by the only local authorized Original Equipment Manufacturer service provider for each product line.
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 each product line for these maintenance and repair services. Due to the extensive list of products and providers, a list of the providers and the product line each provider represents are included in Attachment A.
Contract Term
The initial one-year contract term will begin on or about July 1, 2019, with four option years in increments of up to one year, for a total contract term of five years.
Financial Impact
This contract will have an estimated annual expenditure of $7,000,000, with an aggregate value not to exceed $35,000,000. Funds are 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.