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Regular Agenda Item 2. A.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Approval to use Cooperative Agreement NJPA 032515-CAT Heavy Equipment with related Accessories, Attachments, and Supplies |
| Background Information |
| The amount of heavy equipment parts and labor for repair can range from $100,000 a year to over $200,000 in departments that use heavy equipment. This means a lot of time between going to the Board of Supervisors for permission to advertise, receiving only one bid, and getting an award. This has been known to take up to 12 weeks before a Purchase Order is issued and work can begin on the non-working equipment. Empire Southwest is the only Caterpillar dealer that County departments have dealt with because the County does not receive bids from other vendors. |
| Evaluation |
In FY2015, Public Works spent $160,724 in parts & repairs and $139,968 in new equipment.
In FY2016, Public Works spent $221,152 in parts & repairs, and $139,968 on new equipment.
In FY2017, $140,423 was spent on parts & repairs.
In FY2018, $98,602 was spent on parts & repairs and $106,654 on new equipment.
These were just the Purchase Order amounts. Amounts under $500 were bought with credit cards and these are not tracked by vendor. The Public Works Director's solution as a time saver and to receive discounts on parts and leasing would be to utilize the NJPA Contract No. 032515. Gila County is a member of National Joint Power Association and they follow strict purchasing and bid guidelines. |
| Conclusion |
In order to simplify and keep a reasonable time frame to obtaining Purchase Orders for parts and labor, the Public Works Director would like to have approval to use the NJPA Contract No. 032515-CAT. Purchase orders will still need to be obtained per Board policy, but not have to get bids. This would also eliminate the need for separate contracts for Empire Southwest to repair at their shop or on our property so long as they maintained the proper liability insurance.
The preference for buying and using Caterpillar equipment is simply to save money on mechanic training, diagnostic tools, parts, cutting edges, etc. that having one brand offers. Having one brand such as Caterpillar can usually interchange implements such as moldboards, buckets, blades, etc. That can not be done if the departments have Komatsu, John Deere or others mixed into the Fleet. Here is an excerpt from the contract explaining what Caterpillar offers under the NJPA contract:
“In addition to new machines customers have access to other services our company, and our dealers, can offer to maximize the benefit of their purchase. This can include parts sales, service sales, used machines, financing, equipment management plans, extended warranties, application consultation, certified training, and more.” |
| Recommendation |
| The Public Works Division Director and General Services Manager recommend that the Board approve use of the NJPA CAT Contract 032515-CAT for use of parts, labor, and lease purchase of Caterpillar equipment through Empire Southwest in Mesa, Arizona for a term of 12 months from August 7, 2018, to August 6, 2019, with the option for three (3) one (1) year contract term renewals. The purchase order procedures and Board approval for large purchases will still continue as per the Board Finance policy. |
| Suggested Motion |
| Information/Discussion/Action to approve the use of the National Joint Powers Association's (NJPA) Contract No. 032515-CAT with Empire Southwest for purchasing parts, repair labor, and lease purchase of Caterpillar equipment for up to $400,000 annually. (Steve Sanders) |
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