CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 23-171, Units 225 and 266 Dump Truck with Plow replacement, to JX Peterbilt for an amount not to exceed $624,856.36 with a 7% chassis build cost contingency and 9% body build cost contingency and for a one-time purchase
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Units 225 and 266 were reviewed and approved by the Fleet Economic Committee and Fleet Services Manager for replacement in the 2023 budget. Vehicles are scored for replacement based on four criteria: age, usage, condition and repair costs.
Recommending a vehicle for replacement requires a score 28.0 or greater. Unit 251 scored 40.41 and Unit 266 scored 28.68.
DISCUSSION:
Unit 225 is a 2008 International 7400 single-axle dump truck with plow and Unit 266 is a 2012 International 7400 tandem-axle dump truck with plow used by the Department of Public Works - Operations Division. Units are used for the leaf collection program, winter operations and to move materials and spoils to and from worksites throughout the City.
The retired vehicles will be sold through one of the City’s auction companies and replaced with 2025 Peterbilt 548 dump trucks with plows and will have the same axle configurations as the current units. The Peterbilt 548 units maintain fleet conformity, as this is the update to the Peterbilt 338, which is no longer available.
The new dump trucks are available on the Sourcewell Cooperative, an approved cooperative through JX Peterbilt, Contract #060920-PMC, expiring August 1, 2024.
There was a higher than usual increase in cost due to the new model. Using the City’s specifications, JX Peterbilt has quoted the 2025 Peterbilt 548 dump trucks with plows in the amount of $624,856.36 (Unit 225: $296,857.15 and Unit 266 $327,999.21; a cost breakdown is provided below.
|
Unit # |
Original Price |
Less Cooperative Discount |
Net Price |
|
225 |
$ 338,387 |
$ 41,529.85 |
$ 296,857.15 |
|
266 |
$ 374,455 |
$ 46,455.79 |
$ 327,999.21 |
On the original quote JX Peterbilt noted “Price subject to change upon delivery. Budgetary quote.” Staff negotiated revised wording to reflect, “Price subject to 7% contingency based on build cost.” No increase will be charged if build costs do not increase. Peterbilt’s Sourcewell contract allows for up to a 10% commodity surcharge due to global supply chain cost increases.
Peterbilt will deliver the chassis to Henderson Products for the dump body and snow plow build. The build price contingency for the body build is 9%.
The vehicle will be delivered in approximately 16 months, estimated November 2024.
FISCAL IMPACT:
CIP#: VE23-225 and VE23-266
Vehicle replacements for the Department of Public Works are funded from the account listed below. In the 2023 budget, $612,500 was budgeted for the replacement of Units 225 and 266. The units will be received in 2024 and staff will budget sufficient funds in 2024 to cover this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31102200-551505 |
Capital Projects Fund |
TBD |