M&C Review


COUNCIL ACTION:  Approved on 8/14/2018 

DATE: 8/14/2018 REFERENCE NO.: **P-12236 LOG NAME: 13PPROPM-18-00429274 CONSTRUCTION EQUIPMENT LSJ PMD
CODE: P TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize the Purchase of Construction Equipment from RDO Equipment Company and Holt Texas, Ltd. in a Total Amount of Up to $737,933.48 using Sourcewell (Formerly National Joint Powers Alliance) Cooperative Purchasing Agreement No. 032515 for the Water Department and the Transportation and Public Works Department Through the Property Management Department (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council authorize the purchase of construction equipment from RDO Equipment Company and Holt Texas, Ltd. in a Total Amount up to $737,933.48 using Sourcewell Cooperative Purchasing Agreement No. 032515 for the Water Department and the Transportation and Public Works Department through Property Management Department.  

 
DISCUSSION:

Property Management Fleet approached the Purchasing Division for assistance with the purchase of six heavy duty construction units for the Water and Transportation and Public Works departments for maintenance and repairs of City of Fort Worth streets.  Property Management Fleet obtained cooperative quotes for a cost comparison between four cooperative vendors that provide construction units.  Holt Texas, Ltd., a Caterpillar dealer, and RDO Equipment Company, a John Deere dealer, provided the lowest unit prices for each of the requested units using Sourcewell (formerly NJPA) Cooperative Purchasing Agreement No. 032515.  Staff recommends awarding the purchase of four units to Holt Texas, Ltd. and two units to RDO Equipment Company. Below is a summary of the units and pricing from the recommended Vendors.

Vendor  

Units             Total Price for Awarded Item Department Owner of Equipment
HOLT TEXAS

(3) CAT 430F2 and

(1) CAT 259D  

$494,342.48 Transportation and Public Works
RDO EQUIPMENT (2) John Deere 410L$243,591.00Water Department

The new units will replace existing units that can no longer be economically maintained. The existing units will be sold at auction upon delivery and acceptance of the new units. The new units meet required specifications and are expected to operate satisfactorily during their service life. Warranty information, manufacturer's Statement of Origin, and original sales invoice will accompany the new units upon delivery to the facility located at 4100 Columbus Trail.

BID TABULATION - See Attached

PRICE ANALYSIS - There is no previous purchase history for units with these specific configurations. Staff reviewed the proposed pricing and certified that the prices offered by the recommended vendors are fair and reasonable.

TOTAL OWNERSHIP COST - $1,118,152.23 over service life for all units (See attached TCO).

State law provides that a local government purchasing items through a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the items. Sourcewell Cooperative Purchasing Agreement No. 032515 (formerly NJPA) has been competitively bid to increase and simplify the purchasing power of government entities.

M/WBE OFFICE - An M/WBE goal is not assigned when purchasing from an approved purchasing cooperative or other public entity.

An Administrative change order or increase may be made by the City Manager in the amount of $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.

The units will be delivered within 180-230 days after receipt of a purchase order.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the Vehicle Equipment Replacement Fund and the Water and Sewer Capital Projects Fund.  Prior to an expenditure being made, the Property Management Department has the responsibility to validate the availability of funds.

BQN\PROPM-18-00429274\LSJ
TO
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Program Activity Budget
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FROM
    Fund Department
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Account Project
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Program Activity Budget
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(Chartfield 2)
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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Cynthia B. Garcia (8525)
Additional Information Contact:
LaKita Slack-Johnson (8314)

 
 
ATTACHMENTS
  CONSTRUCTION EQUIPMENT PRICE COMPARISON.pdf
  PROPM-18-00429274 HOLT 1295 FORM.pdf
  PROPM-18-00429274 RDO 1295 FORM.pdf