Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to purchase two dump trucks with extended cabs and mounted air compressors from Jorgensen Ford Sales, Inc. for an amount not-to-exceed $220,640, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of October 16, 2019
Item No. 19-00281
Contract No. 6002404
Purchase Amount: $220,640
Proposed Delivery Date: Four weeks from date ordered (approximately 12/2/19)
Supplier: Jorgensen Ford Sales, Inc., 8333 Michigan Avenue, Detroit, Michigan 48210
TO: The Honorable, Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Contract No. 6002404
Purchase of two dump trucks with extended cabs and mounted air compressors from Jorgensen Ford Sales, Inc.
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to purchase two dump trucks with extended cabs and mounted air compressors from Jorgensen Ford Sales, Inc. for an amount not-to-exceed $220,640, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
DWSD Fleet Department is responsible for the repairs, maintenance and replacement for all DWSD owned vehicles and equipment. DWSD owned dump trucks are used by several divisions within the department including Heavy Repair and Maintenance & Repair year round to regularly support daily operations. These two trucks include an automatic transmission four-wheel drive 185 cubic feet per minute (CFM) underdeck power take off (PTO) drive air compressor with 8-foot extended cabs. This purchase is necessary to maintain a sufficient number of operable vehicles capable of servicing the needs of DWSD.
PROCUREMENT METHOD
The Department Manager’s estimate for this contract is $180,000. This purchase was procured through a Request for Bids (RFB) and based on recent comparable purchases and current market conditions. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) for 25 calendar days. MITN published this opportunity to 337 companies subscribing to the relevant NIGP code(s) and 18 firms downloaded the bid package.
While the bid solicitation was competitively advertised for more than 25 days, one bid was received and downloaded from MITN by DWSD’s Procurement personnel. The items requested were Ford brand specific, the minimum qualifications in the RFB required warranty coverage, a business location within a 40-mile radius of DWSD Fleet and qualifications as an authorized sales and service facility or a class “A” license dealer.
The sole bid received was:
|
BIDDER |
DBB or DRB QUALIFIED |
BID PRICE |
EQUALIZED CREDIT |
EQUALIZED PRICE |
|
Jorgensen Ford Sales, Inc. |
DBB / 2% |
$220,640 |
($4,413) |
$216,227 |
The RFB was viewed and downloaded from MITN by 18 potential bidders. Ten of the 18 potential bidders who downloaded the RFB were not located within a 40-mile radius of DWSD and therefore could not meet the geographic minimum qualification. However, eight of the 18 were located within 40-miles of DWSD, but only one supplier submitted a bid. A low bid email inquiry was sent to the remaining eight potential bidders located within 40-miles of DWSD. The responses were:
|
Vendor |
Low Bid Inquiry Response |
Location |
|
Monroe Truck |
Bid product equipment too small to bid |
Flint,, MI |
|
Custom Truck One Source |
Missed bid deadline |
St. Clair Shores, MI |
|
NBC Truck |
Missed bid deadline |
Roseville, MI |
|
Santoro, Inc. |
Will assist in attaching the equipment for Jorgensen Ford |
Detroit, MI |
|
Versalift formerly Canton |
Cannot provide equipment |
Shelby Twp., MI |
|
Galeana’s Van Dyke Dodge |
Overlooked the bid solicitation |
Warren, MI |
|
Wolverine Truck |
Missed bid opportunity |
Dearborn, MI |
Although someone of the vendors indicated they missed the bid opportunity, the solicitation was advertised for a period of 27 days. Based on the information above, it is recommended that Jorgensen Ford Sales, Inc., the sole responsive and responsible bidder, be awarded the contract.
SUMMARY
Contract No.: 6002404
Contract Amount: $220,640
Anticipated Delivery Date: Four weeks from date ordered (approximately 12/2/19)
Funding Source: I&E Funds
GL Strings: 5721-20244-487711-644121-004104-30129-0000-000000 - 50%
5821-20243-497711-644121-004105-30129-0000-000000 - 50%
This proposed purchase was presented to the Finance Sub-Committee on October 2, 2019. Per the DWSD Procurement Policy, no additional approvals are required.