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Home My WebLink About1999-10-13 99-340 ORDERCOUNCIL ACTION Date: October 13, 1999 Item No. 99-30 Item/Subjwh Bid Award for a front end loader Responsible DepmtrneM: Pwchasing/Motor Pool Commentary: The City received eight bids for the Gant and loader and the prices ranged f om $112,996.00 to $142,686.00- see attached bid tabulation. This loader purchase is part of the Motor Pool's new equipment phased replacement program that is being funded with general obligation bonds, FEMA remburiannow funds audd unexpended budget funds. The staff has recommended that the City accept the second low bid doom Southworth Milton Inc. of Brewer for a Caterpillar Model 938G Loader. The reason for this recommendation is primarily a higher resale value for the Caterpillar after 3-5 years and better parts and service availability how Southworth Milton. See attached memorandum and other infatuation that supports the basis for the stall marrunendation. This higher resale value and better paits/service availability is disputed by R.C. Hazelton Co., Inc, the low bidder. A presentation was wade to the Finance Committee by the RC. Hazelton representative who said that their loader (Komatsu Model WA 320.3) had a similar resale value to the Caterpillar and that parts ant service would be equal to Southworth Millon's. The Finance Committce reviewed and discussed the inf ernwhon provided by both sides on October 4" W referred the Southworth Milton bid award to the City Council with a recommendation for approval (three in favor and two opposed). SpF nJFXT P"e ---R2Fuist0 C&Agvivniky 1 YF£ F�Tf�}ctffD �2DeR y>1/��.)zcD Hr1f NQPD Srio��.D 3� susrn�ntrcA Dep t H Manager's Comments: - ms)iu a.w$0b- bay W,.Ba,'ir City Manager Assona[edd'ownatrov: Finance Committee cc dation arM bid tabulation) 4-i4wn Budget Approval: Finance Director Legal Approval: ity Sohcitm Introduced For. X Pawage_Fhst Reading Reins) COONCH, ACTION aaVIbEY— Dow: November 22,1999 baubles 99-340 Rm✓Subject Bid Award for a wheel loader Responsible Department Purchasing/Morm Pool Commentary: On September 8, 1999 the City received eight bids for a wheel loader and the prices ranged from $112,096.00 to$142,686.00- see attached bid Whoatiom This loader purchase is pmt of the Motor Pool's new equipment phased replacement prom grathat is being moral with general obligation bonds; FEMA rennbmsement funds and unexpeMed budget funds. On October 6,1999 staff recommended that the City accept theecondlow bid from Southworth Milton Inc. of Brewer for a Caterpillar Model 938G loader. The reasons cited for this recommendation was primarily a higher resale value for the Caterpillar and better parts and service availability firm Smdrworth Milton. This higber resale value aM better parb/service availability was disputed by R.C. Hazelton Co., Inc, the low bidder, so the bid process was continued in order to incorporate these dencems into the bid process A "life cycle" or "total deal" bid was subsequently issued and R.C. Houlton submitted the most competitive bid. On November 1°, the Finance Committee approved a purchase recommendation to buy a Komatsu wheel loader from R.C. Hazelton of Bangor: however, R. C. Hazelton Co, was subsequently double to deliver the loader in the I0-l4 days promised and will not be able to deliver until Mamb 2000. Since the loader will be an integral pan of the City's snow runoval program this winter, the R.C. Hazelton bid was rejected. The next most competitive bid was submitted by Metw of Bangor for a John Deere loader a[ apumhase price of$1 V,OW.00 and abuyback amount of$58,197.00 after five years. Metco Lasa delivery of about 45 days. _ The recommendation to purchase the John Deere loaderfiom Metco for $11],00"1.00 was reviewedby the Finance Committee November 15, 1999 and refined to the City Council with nidation for approval. Dep the Manager's Comments: City M nage Associated Lrformation: Finance Committee Recommendation and bid lobulation Budget Approval: Finance Director Legal Approval: City Solicitor Introduced For: X Passage First Resing_Ref¢ml CITY OF BANGOR Page 1 of 1 BID TABULATION Bid Opening: October 27, 1999 ARTICULATING FRONT END LOADER 'Gauranbi buy book amount reduced by W,5U0.UU In Order to cover Wet OthilunoembOne. "$20.001 Hour for each additional hour over 4,500/7,500 limit. R.C. Hazelbn Co., Inc. Bangor, ME Metw Ban or, Malne ITEM ITEM DESCRIPTION 3 YEAR QTY UNIT OPTION 5VEAR OPTION 3VEAR OPTION 5VEAR OPTION OPTION 3YEAR OPTION Loader 1999 Komatsu 1999 JOM1n Deere 1898 Case 1999 1. Front End Loader 7 ea. 112,796.00 112,796.00 117,007.00 117,007.00 2. 1. Maximum Repair Costa ars 0.00 1 0.00 115,761.00 115,761.00 3. 115,276.00 Maximum Repair Costs ars 0.00 000 4. 1.550.00 B Back amount after rs "81,000.00 82,500.00 5. 8,950.00 Bu Back amount afters years 3,15000 '70,000.00 58,81000 69,00.00 65,000.00 5. Buy Back amount afters ywm NET COST OF OWNERSHIP 31796.00 42796.00 ""34507.00 "s g7.00 'Gauranbi buy book amount reduced by W,5U0.UU In Order to cover Wet OthilunoembOne. "$20.001 Hour for each additional hour over 4,500/7,500 limit. Beauregard Equipment Banor, ME Sou0iWorlh Milton, Inc. Brewer, ME ITEM - DESCRIPTION OTY UNIT 3VEAR5VEAR OPTION OPTION 3YEAR OPTION 5YEAR OPTION Loader 1898 Case 1999 Cat 1. Front End Loader 1 ea. 115,761.00 115,761.00 115,276.00 115,276.00 2. Maximum Repair Costa ars 2,805.00 1.550.00 3. Maximum Repair Costs are 8,950.00 3,15000 4. Buy Back amount after 3 years 69,00.00 65,000.00 5. Buy Back amount afters ywm 56,00.00 50,000.00 NET COST OF OWNERSHIP: 49,566.001 69711.00 51826.00 88428.00 'Gauranbi buy book amount reduced by W,5U0.UU In Order to cover Wet OthilunoembOne. "$20.001 Hour for each additional hour over 4,500/7,500 limit. 49-360 Assigned to Councilor, iRmENfleD CITY OF BANGOR (TITLE.) (DrZrexe.......... Authorizing Bid Award fgfthaRWhrse ofawheel Loader.. ._... By Ne City CauuH offJ6 My ofHouyw. OEDEEE% THAT David N. Pellegrim, Purchasing Agent, is hereby authorized to execute a purchase order in the mourn of$117,007.00 for the purchase of a whorl loader from Metro of Bangor. Assigned to f dun. Aube Oc[uber 13. 1999 CITY OF BANGOR (TITLE.) (®rDtt, _._.A,4lhonaing Bla Awerpr meyar�,_.a_se.or KTmlluader,._ By to city Com id Of t14 Cita ofBaetor. ORDERED, TEAT David N.Pellegrino, Purchasing Agent, is hereby authorized to execute a purchase order in the amount of $115,276.00 for the purchase of wheel loader from Southworth Milton, Inc. of Brewer, IN CITY COY m October 13, 1999 Batiste to Refer to Pinenee f tte Referred to Finance C®ittee cIS IN CITY WONCIL November 22. 1999 Notion for Passage Made avd Seconded' Karim to Amend by Substitutive Made and Seesawed Marine for peas as Amended by Substitution Made avd Stranded Passed As Amevded by Substitution B 99-360 O R OCR Title, AutBoeieing Bid Award for the Pur- chase of a Basel Loader ...................................... da Anipmd to ....... / / "AKA.. ............. Councilman . _ 99-060 CITY OF BANGOR A WA RARFCOMMENDATION BID ITEM(S): Front End Loader DEPARTMENT: Motor Pool - BUDGET REFERENCE: Requisition No.: 5T206 Account Number: See attached smsadsheet Budgeted Amount: $ 115.000.00 Available Balance: $115 000.00 Total Amount of Award Recommended: $ 117.009.00 Vendor Recommended: Metro Number of Bids Sent 15 Number of Bids Received: 8 Date Advertised: Aueust 27,199i) Bid Opening Date: September 8, 1999 Past Experience with Vendor: X Excellent_ Good_ Fair_ Poor_ No prior experience If no experience, references checked or other method of vendor reliability established OTHER COMMENTS: On November 1, 1999 the Finance Committee approved a purchase recommendation to buy a Kommsu wheel loader from R.C. Hazelton ofBargor. This recommendation was based upon the results ofa total cost bid in which Me bid from R.C. Hazelton was the most competitive. R.C. Hazelton, however, is unable to deliver the loader with the 10-14 days promised and will not be able to deliver =61 March 2000. Since this loader will be an integral pan ofthe City's snow removal program this winter the RC. Hazelton bid must be rejected. The next most competitive bid was submitted by Metro of Bangor for a John Deme loader at the purchase price of$117,007.00 and a buyback amount Of 1359,197.04) afar five years. I recommend that the City contract with Melon to supply die loader which has a delivery of about 45 days. This loader purchase is part of the Motor Pool's new equipment phased replacement program funded with General Obligation Bonds, FEMA reualbursurom fiuWs and unexpended budget funds. See attached spread sheet for details. This equipment will be purchased under Ne tams of a "total cost' contract in which Me vendor will buy back Ne loader after those or five years if the City decides to sell Ne equipment. There aro also no repair costs to Me City over Me five year period. Only tholse w s co dered normal operating costs (brake linings, batteries, headhghts, [vers etc.) will be the UI&ZL Page 1 of If no experience, references checked or other method of vendor reliability established Page 2 of 2 CITY OF BANGOR 41 AWARD REC2MMENDA77ON BID ITEM(S): Fron[ Bnd Load¢ DEPARTMENT: Motor Pool BUDGET REFERENCE: Requisition No.: 572M Account Number: See attached soxeadsbeet Budgeted Amount: S 115.000.00 Available Balance: 5 115,000.00 Total Amount of Award Recommended: $117007.00 Vendor Recommended: Metco Nnmber of Bids Sent: 13 Number of Bids Received: 9 Date Advertbed: Aueust299999 Bid Opening Date: SgAiember8 1999 Past Experience with Vendor: X Excellmt_God_Fair_Poor_Nopriorexperience If no experience, references checked or other method of vendor reliability established Page 2 of 2