CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Sole Source Procurement 23-204, Unit 024 Three-Reel Turret Trailer Replacement, to Sauber Manufacturing for an amount not to exceed $136,739, 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:
Unit 024 is a 1986 Sauber 1560 wire trailer used by the Electric Utility - Distribution Division to transport wire required for infrastructure maintenance and repair.
This unit was reviewed and approved by the Fleet Economic Committee and Fleet Services Manager for replacement in the FY2023 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 024 scored 51.25.
DISCUSSION:
This Sole Source is requested for a one-time purchase of a Sauber 1539 three-reel turret trailer.
The Electric Utility worked with Sauber Manufacturing to specify a three-reel turret trailer to replace that trailer. In addition to trailer specifications, two required criteria are proximity of warranty repair service provider and hot-dip galvanization to reduce corrosion, maintaining longevity of the asset. Service provider proximity to Fleet Services is key for ongoing warranty and repair services. If the trailer requires warranty or other repairs by a manufacturer-approved service provider, City personnel must transport the unit to and from the vendor.
The Electric Utility received a Sourcewell quote from National Auto Fleet Group with a 10% markup over cost of the trailer from Sauber, as a sourced good. Staff confirmed with Sourcewell this is not an appropriate use of their cooperative contract. There is not a Sourcewell three-reel turret trailer contract awarded to a vendor with a warranty service location within close proximity to Fleet Services.
The Electric Utility and the Department of Public Works have identified this purchase as a Sole Source because Sauber Manufacturing is the only vendor within a 40-mile radius of Fleet Services that provides a hot-dip galvanized three-reel turret trailer that meets the Electric Utility’s specifications. Other potential suppliers were located in Tennessee, Iowa, Minnesota, Wisconsin and Missouri.
The wire trailer will be replaced with a 2023 Sauber 1539 three-reel turret trailer. In years past, the Electric Utility used trucks mounted with turrets. Moving to a three-reel turret trailer provides extra capacity to order, store and transport wire acquired at a lower cost, while increasing the operational flexibility of their truck fleet. The turret trailer will be hot-dip galvanized to minimize corrosion.
Using the City’s specifications, Sauber Manufacturing has quoted the 2023 Sauber 1539 three-reel turret trailer in the amount of $136,739.
The trailer will be delivered in approximately three months, by 12/31/2023. Term of contract is from date of award to December 31, 2023.
The retired vehicle will be sold through one of the City’s auction companies.
FISCAL IMPACT:
CIP#: VE23-024
Equipment replacements for the Electric Utility are funded from the account below. The Electric Utility budgeted $30,000 for the replacement of Unit 024, the total award exceeds the budgeted amount by $106,739. However, $184,800 was budgeted for replacement of Unit 077 in 2023, but Unit 077 is delayed and will not be received in 2023. As a result, there will be sufficient funds to replace Unit 024 within the 2023 budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551505 |
Electric Utility Fund |
$347,700 |