Title
The Board of Water Commissioners for the City of Detroit, the Water and Sewerage Department authorizes the Director to enter into Contract # 6002025, based on pricing from MI Deal Contract # 071B7700084 with MacAllister Machinery Co., DBA Michigan CAT for the purchase of four (4) new Caterpillar Model 430F2 Backhoes, at a cost not to exceed $370,000.00, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of April 17, 2019
Item No.: 19-0088
Contract Number: 6002025
Vendor: MacAllister Machinery, Co. DBA Michigan CAT
24800 Novi Road
Novi, MI 48375
Duration: 1/13/17 to 1/12/21
Contract Amount: Not to exceed $370,000.00
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
The Detroit Water and Sewerage Department
RE: Purchase of four (4) new Caterpillar Model 430F2 Backhoes
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, the Water and Sewerage Department authorizes the Director to enter into Contract # 6002025, based on pricing from MI Deal Contract # 071B7700084 with MacAllister Machinery Co., DBA Michigan CAT for the purchase of four (4) new Caterpillar Model 430F2 Backhoes, at a cost not to exceed $370,000.00, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Backhoes are used year round in support of DWSD maintenance and repair operations.
JUSTIFICATION
In order to respond to large scale repair operations, the purchase of these Backhoes is necessary. These four backhoes are necessary to replace four units that are “Out of Service”.
PROCUREMENT METHOD
Fleet Operations provided information to Purchasing that Michigan CAT is the sole authorized dealer in the Lower Peninsula. Purchasing confirmed via the Caterpillar Website CAT.com that the list of three authorized dealers/distributers includes locations in Brownstown Township, Shelby Township and Novi. The next closest dealers would be in Ontario, Canada and Perrysburg, Ohio.
Pursuant to DWSD’s Procurement Policy, section (5) Exceptions to Competitive Bidding (B) Sole Source Procurements, competitive bidding is not required when there is only one source of supply available.
The contract amount has been based on the contract pricing that the State of Michigan was able to obtain for this model Backhoe.
DETAILS
Funding Source: Operations and Maintenance (O & M) funded
GL string: 30% 5720-20167-482422-622100-000209-10731-0000-000000 $ 111,000.00
GL string: 70% 5820-20178-492422-622100-000230-15956-0000-000000 $ 259,000.00
Original Duration: Two Years
DWSD Department: Fleet Operations
Total: $370,000.00