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Regular Agenda Item 3. M.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Request use of Cooperative Agreements Sourcewell contract #032119 and contract #062320-CAT to use Caterpillar, Empire Machinery, and Empire Southwest for heavy equipment purchases, related accessories, attachments, parts, supplies, and rentals. |
| Background Information |
On August 7, 2018, the Board of Supervisors approved the use of Cooperative Agreement Sourcewell 032515-CAT to use in purchasing and repairing Heavy Equipment with related accessories, attachments, and supplies in the amount of $400,000.
The first Amendment was approved by the Board of Supervisors on September 3, 2019, to participate until August 6, 2020, and continue to use the cooperative agreement with Caterpillar and Empire Machinery.
On August 17, 2020, the Board of Supervisors agreed to a second amendment to continue using the Sourcewell Cooperative for Caterpillar parts and equipment at $400,000 a year.
On May 18, 2021, Public Works came to the Board to request an additional $160,000 so repairs would not have to be delayed until July 1, 2021, for a total of $560,000 used by August 2021.
On September 7, 2021, the Board approved an increase to $600,000 for an annual amount under the Sourcewell Caterpillar contracts 032119-CAT purchases and 062320-CAT rentals. |
| Evaluation |
By using the Sourcewell Cooperative Agreements #032119-CAT and #062320-CAT the County will continue to exercise the option to save money with discounts in all 4 County Departments that have Caterpillar equipment i.e.: Roads, Recycle Landfill, Facilities, and Sheriff’s Office.
Gila County’s main sources for heavy equipment parts, rentals, and equipment are Caterpillar, Empire Machinery, and Empire Southwest. |
| Conclusion |
The Sourcewell contracts with Caterpillar have simplified and kept a reasonable time frame for obtaining Purchase Orders for parts and labor with the vendors under this contract. It enables the Departments to save money with discounts when purchasing heavy equipment parts, supplies, and equipment. The Sourcewell contract #062320-CAT enables Gila County to save when renting Caterpillar equipment.
The Public Works Department recommends remaining at $600,000 with this Board agreement. This would ensure repairs are not delayed by an estimated dollar amount that may fall short toward the end of the Board contract deadline or defer purchases approved in the budgets. Caterpillar and Empire will continue giving the County discounts under these Sourcewell cooperatives without a contract. This agreement is only a guideline with the Board of Supervisors. |
| Recommendation |
| The Public Works Department Director recommends that the Board of Supervisors approves the use of Cooperative Agreements Sourcewell contract #032119-CAT for heavy equipment with related accessories, attachments, supplies, parts, labor, lease purchase, and Sourcewell contract #062320-CAT for rental of Caterpillar equipment with Empire Machinery and Empire Southwest LLC in Arizona for a term of 12 months from September 7, 2022, to September 6, 2023, with the option for one (1), one (1) year contract term renewals. The purchase order procedures and Board approval for large purchases will continue as per the Board Finance policy. |
| Suggested Motion |
| Information/Discussion/Action to approve the use of Cooperative Agreements Sourcewell Contract #032119-CAT and Contract #062320-CAT for heavy equipment purchases, related accessories, attachments, parts, supplies, and rentals for the agreement term with the Board of Supervisors using Caterpillar, Empire Machinery and Empire Southwest LLC from September 7, 2022, to September 6, 2023, with a not to exceed amount of $600,000 annually. (Steve Sanders) |
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