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Regular Agenda Item 2. B.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Amendment No. 1 to Cooperative Agreement NJPA 032515-CAT aka Sourcewell 032515-CAT Heavy Equipment with related Accessories, Attachments, and Supplies. |
| Background Information |
On August 7, 2018, the Board of Supervisors awarded Cooperative Agreement now known as Sourcewell (NJPA) 032515-CAT Heavy Equipment with related Accessories, Attachments, and Supplies in the amount of $400,000.
Gila County Public Works Department is requesting to renew the contract for an additional year, from August 7, 2019, to August 6, 2020.
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 |
| Amendment No. 1 to Cooperative Agreement Sourcewell 032515-CAT will serve to exercise the option to renew the contract for one additional year from August 7, 2019, to August 6, 2020 for a contract total of $400,000. |
| 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 Sourcewell 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 Sourcewell 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 approves Amendment No. 1 to Cooperative Agreement Sourcewell 032515-CAT Heavy Equipment with related Accessories, Attachments, and Supplies 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, 2019, to August 6, 2020, with the option for two (2) 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 Amendment No. 1 to Cooperative Agreement Sourcewell 032515-CAT Heavy Equipment with related Accessories, Attachments, and Supplies to extend the contract term with Empire Southwest for an additional year from August 7, 2019, to August 6, 2020 for up to $400,000 annually. (Steve Sanders) |
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