Consent 1.A.2.
Regular City Council Meeting
- Meeting Date:
- 09/10/2018
- TITLE
- Bid Award - Three New 2019 40,000 lb. 4 CY Wheel Loaders
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
No
PROBLEM/ISSUE STATEMENT
Bids were received by the Distribution and Collection Division and the Street and Traffic Division of the Public Works Department on August 28, 2018 to purchase three (3) new 2019 40,000 lb. 4 CY wheel loaders. This purchase will replace Units 7929 and 1213, which are included in the FY 2019 Equipment Replacement Plan (ERP) and the FY 2019 budget for the Distribution and Collection Division and the Street and Traffic Division. Units 7929 and 1213 will be traded, so the trade-in values are reflected in the net price submitted by the bidders. The City received seven (7) bids and Tractor & Equipment Co. was the low bidder that met bid specifications. Bobcat of Big Sky, Inc. did not meet bid specifications.
ALTERNATIVES ANALYZED
City Council may:
- Approve purchasing the three (3) 2019 40,000 lb. 4 CY wheel loaders from Tractor & Equipment, Co., or;
- Disapprove the purchase and reject all bids. If the new wheel loaders are not purchased, the Public Works Department will be required to continue using the existing units that are at or near the end of their useful life. Maintenance costs will increase and reliability will decrease.
FINANCIAL IMPACT
Seven (7) bids were received as shown below:
* Bobcat of Big Sky, Inc. does not meet bid specifications.
| Vendor | Bid Amount Less Trade |
5-Year Warranty For the Transmission and Engine |
Bid Amount Less Trade, Plus 5-Year Warranty on Transmission and Engine Per Unit |
| * Bobcat of Big Sky, Inc. | $ 517,399.00 | $ 16,200.00 | $ 533,599.00 |
| Tractor & Equipment Co. | $ 566,399.00 | $ 5,550.00 | $ 571,949.00 |
| RDO Equipment Co. | $ 587,000.00 | $ 6,358.00 | $ 593,358.00 |
| Titan Machinery | $ 605,725.00 | $ 1,881.00 | $ 607,606.00 |
| Tri State Truck & Equipment, Inc. | $ 608,544.00 | $ 3,965.00 | $ 612,509.00 |
| Torgerson’s | $ 615,384.63 | $ 21,641.82 | $ 637,026.45 |
| Modern Machinery | $ 732,000.00 | $ 9,175.00 | $ 741,175.00 |
* Bobcat of Big Sky, Inc. does not meet bid specifications.
RECOMMENDATION
Staff recommends that Council award the contract to purchase three (3) 2019 40,000 lb. 4 CY wheel loaders to Tractor & Equipment Co. in the amount of $571,949.00 (less trade). This includes the three (3) new wheel loaders, trading in the two (2) current loaders, and the five-year warranty on the transmission and engine.