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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Purchase Order 3068580 to provide (1) one John Deere 644P Wheel Loader and Attachments with AIS Construction Equipment Corporation, for a total purchase order amount not-to-exceed $369,994.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of October 18, 2023
Item No.: 2023-219
Purchase Order No.: 3068580
Contractor: AIS Construction Equipment Corporation, 56555 Pontiac Trail, New Hudson, MI 48165
Purchase Order Amount: $369,994.00
Term: One-Time Purchase
Estimated Delivery: Early November after receipt of purchase order
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Purchase Order 3068580
One John Deere 644P Front Wheel Loader and Attachments
AIS Construction Equipment Corporation
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Purchase Order 3068580 to provide (1) one John Deere 644P Wheel Loader and Attachments with AIS Construction Equipment Corporation, for a total purchase order amount not-to-exceed $369,994.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The Detroit Water and Sewerage Department (DWSD) Fleet Operations have requested the purchase of one John Deere front wheel loader with attachments to replace disabled unit 402. The purchase of the new John Deere wheel loader with attachments is part of the five-year Capital Improvement Purchase (CIP).
The Front End Loader is used by Operations to load larger trucks with heavy materials such as soil , salt, sand, cold patch , spoil and debris. These units can also be used to grade land or break ice. The high ground clearance allows the unit to be used off road or in muddy areas and the high driver’s seat gives the operator the ability to see into the trucks being loaded. This unit incorporates a load scale to prevent material loss and overloading of vehicles.
PROCUREMENT METHOD - SOLE SOURCE
Requisition #510310 was submitted and approved by Budget on 8/24/23. The purchase of the (1) one John Deere 644P Wheel Loader with Attachments will utilize MiDeal Contract #071B700090 and be purchased from the sole source vendor, AIS Construction Equipment Corporation.
The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums of competitively solicited contracts. Prior to utilizing a cooperative contract, the DWSD Procurement Policy requires Detroit Based Businesses (DBB) and Detroit Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the price of the cooperative purchase agreement, provided the DBB or DRB will meet or exceed all terms and conditions of the cooperative agreement. However, competitive bidding is not required when the vendor is a sole source vendor.
The DWSD Procurement Policy also allows for an Exception to Competitive Bidding for sole source vendors. Prior to utilizing this exception, the DWSD Procurement Policy requires DWSD Procurement to certify by obtaining appropriate documentation that only one source of supply is available. To ensure compliance, DWSD Procurement has confirmed AIS Construction Equipment Corporation is a confirmed sole source vendor. AIS Construction Equipment Corporation has provided a current sole source letter to DWSD confirming that they are the only authorized distributor for John Deere construction equipment, products, parts, and service in the State of Michigan that can provide this equipment to DWSD. This purchase will be a one-time purchase procured on Purchase Order 3068580 per the pricing, terms, and conditions of MiDeal Contract #071B7700090.
Based on the information above, DWSD Procurement recommends the purchase be awarded to AIS Construction Equipment Corporation for a one-time purchase with a purchase order not-to-exceed amount of $369,994.00.
AIS Construction Equipment Corporation insurance is current, and clearances expire on 2/23/24. Per DWSD procurement protocol and a formal contract document is not required.
SUMMARY
A. Contractor: AIS Construction Equipment Corporation
B. Purchase Order No: 3068580
C. Term: One-Time Purchase
D. Purchase Order Amount: $369,994.00
E. Funding Source: CIP Funds
F. GL String:
5721-20244-487711-644121-004104-30129-0000-000000 - 50%
5821-20243-497711-644121-004105-30129-0000-000000 - 50%
This proposed purchase order was presented to the BOWC Finance Subcommittee on October 4, 2023. Per DWSD procurement protocol, no additional approvals are required.