The Police Department has requested the Fleet Division of Property Management to assist in the purchase of fifty-five Chevy Tahoes to replace older vehicles which are no longer economically feasible to maintain. The vehicles will be used as follows: fifty-four will be marked and used in support of traffic control functions and one will remain unmarked to be used for rapid response by executive staff in emergency situations and to carry necessary equipment. The older vehicles will be sold at auction upon delivery and acceptance of the new vehicles. TOTAL COST OF OWNERSHIP - The cost to purchase the vehicles will be approximately $1,839,608.00. The total cost of ownership, including cost of vehicles is approximately $3,545,244.00 (see attached tabulation). The life expectancy for the vehicles is 7.5 years. These vehicles meet the required specifications and are expected to operate satisfactorily during their average service life. Warranty information, manufacturer's statement of origin and an original sales invoice will accompany the new vehicles upon delivery to the City. PRICE ANALYSIS - Property Management reviewed the price and determined it to be fair and reasonable. COOPERATIVE PURCHASE - State law provides that a local government purchasing items under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the items. H-GAC Cooperative Purchasing Contract No. VE11-15 has been competitively bid to increase the purchasing power of government entities and to simplify the bidding process. ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated. M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.
|