HomeMy WebLinkAbout2021-02-22 21-091 Order
02/22/202121-091
02/22/2021
21-091
Public Works
Order
N/A
Title, Order
Authorizing the Purchase of Backhoe/Loader from Nortrax Equipment Company in the Amount of $123,000
(Life-cycle Cost)
This order will authorize the purchase of a backhoe/loader from Nortrax for the net amount of
$68,000. On February 10, 2021, the City received two (2) bids ranging from $68,000 - $78,040 net
of the required buyback.
As has been the City's practice when purchasing certain pieces of equipment, this backhoe/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 cost is $123,000, with a guaranteed buyback of $55,000 for a final net life
cycle cost of $68,000.
Finance Committee
02/17/2021
Recommend for passage
50
Consent
02/22/202121-091
CITY OF BANGOR ORDER
02/22/2021
21-091
Fournier
Authorizing the Purchase of Backhoe/Loader from Nortrax Equipment Company in the Amount of $123,000
(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 February 10, 2021, the City received two (2) bids ranging from $68,000 - $78,040 net of the
required buyback.
Be it Ordered by the City Council of the City of Bangor that, the bid for a backhoe/loader under the life cycle
cost method is hereby awarded to Nortrax, with a purchase price of $123,000, and a guaranteed buyback of $
55,000 which results in a net lifecycle cost of $68,000.
IN CITY COUNCIL
FEBRUARY 22,2021
CO 21-091
Motion made and seconded for Passage of Consent Agenda
Vote: 9—0
Councilors Voting Yes: Davitt,Dubay, Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague,Tremble
Councilors Voting No: None
Passed
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