CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Change Order #1 to Cooperative Procurement 19-066, Unit 233 and Unit 234 Vehicle Replacement, to JX Peterbilt Bolingbrook. for an amount not to exceed $1,318 and a total award of $394,364.50
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BACKGROUND:
Unit 233 and Unit 234 were planned 2019 vehicle replacements approved through the 2019 budget process. Both units are used by the Department of Public Works - Operations Division in various capacities throughout the year, including leaf pick-up, hauling soil and asphalt, salt applications and snow removal.
On March 5, 2019, the City Council awarded Cooperate Procurement 19-066 to JX Peterbilt Bolingbrook for the purchase of two 2020 Peterbilt Model 348 cab and chassis to perform the same duties as the previous units. The units were scheduled for delivery in December 2019.
DISCUSSION:
On November 1, 2019, the hydraulic pump on Unit 234 failed. The cost to repair a hydraulic pump ranges between $5,155 and $6,663. However, the PTO pump on the unit was obsolete so repairs were not made to the Unit.
JX Peterbilt provided trade-in values for Unit 233 and Unit 234 in March of 2019. The trade-in value for each unit was calculated at$18,000 and was factored into the total purchase price of the two new vehicles. Due to the repairs needed on Unit 234, JX Peterbilt Bolingbrook adjusted the trade-in value to $16,500 for Unit 234, which is $1,500 less than the original trade-in value.
However, staff is only requesting a change order in the amount of $1,318 to cover the lower trade-in value, because JX Peterbilt Bolingbrook's material costs for the new chassis for the new vehicles were lower than expected, and the vendor lowered the price of both units and passed those savings to the City. Per the Procurement Code, the City Manager can approve a change order less than $10,000 if sufficient funds ...
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