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HomeMy WebLinkAbout2019-10-16 19-384 Order 10/16/201919-384 10/16/2019 19-384 Public Works Order N/A Title, Order Authorizing Award of Bid to Nortrax in the amount of $193,000 for a Front End Loader (Life-cycle Cost) This order will authorize the purchase of a front end loader from Nortrax for the net amount of $99,000. On October 2, 2019, the City received three (3) bids ranging from $99,000 - $114,000 net of the required buyback. As has been the City's practice when purchasing certain pieces of equipment, this loader was bid utilizing the life-cycle costing method. Under this costing method, vendors must agree to purchase the unit back at the end of a period for a predetermined price. For this bid, Nortrax is the low bid as the new loader would cost $193,000, with a guaranteed buyback of $94,000 for a final net life cycle cost of $99,000. Finance Committee 10/07/2019 Recommend for passage 50 Consent 10/16/201919-384 CITY OF BANGOR ORDER 10/16/2019 19-384 Weston Authorizing Award of Bid to Nortrax in the amount of $193,000 for a Front End Loader (Life-cycle Cost) Whereas, in the past, the City has utilized the life cycle costing method to purchase equipment; and Whereas, under this costing method, vendors must agree to purchase the unit back at the end of a period for a predetermined price. Whereas, on October 2, 2019, the City received three (3) bids ranging from $99,000 - $114,000 net of the required buyback. Be it Ordered by the City Council of the City of Bangor that, the bid for a front end loader under the life cycle cost method is hereby award to Nortrax, with a purchase price of $193,000 , a guaranteed buyback of $94,000 which results in a net lifecycle cost of $99,000. IN CITY COUNCIL OCTOBER 16,2019 CO 19-384 PASSED CITY CLE