Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve the purchase of a 3-yard extended cab dump truck in the amount not-to-exceed $126,591 from Jorgensen Ford Sales, Inc., 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. 19-00284
Purchase Order No. 3035959
Purchase Amount: $126,591
Delivery: Four weeks from date ordered (approximately 11/16/19)
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 Purchase Order No. 3035959
To purchase a 3-yard dump truck 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 approve the purchase of a 3-yard extended cab dump truck in the amount not-to-exceed $126,591 from Jorgensen Ford Sales, Inc., and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
The DWSD Fleet Department is responsible for the purchase, repairs, maintenance and replacement of all DWSD owned vehicles and equipment. Dump trucks are used to move work equipment and materials from work sites. Fleet is requesting to purchase a 1.5 ton, 3-yard, 4-wheel drive, dump truck with an extended cab per Specification No. DFD4X4WU-SKDT 02/19. The purchase of this dump truck is necessary to maintain a sufficient number of operable vehicles capable of servicing the needs of DWSD.
JUSTIFICATION
DWSD Fleet responsible for the purchase of and maintaining operable and reliable vehicles for several divisions. Purchasing this dump truck will alleviate the shortage and aid in DWSD’s daily operations.
PROCUREMENT METHOD
The Department Manager’s estimate for this contract is $130,000. The purchase was procured through a Request for Bids (RFB) and advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 28 calendar days. MITN published this opportunity to 230 companies subscribing to the relevant NIGP code(s) and 13 firms downloaded the bid package.
The items requested were Ford brand specific and the minimum qualifications in the RFB are warranty coverage, a business location within a 40-mile radius of DWSD Fleet and operating as an authorized manufacturer sales and service facility or a class “A” license dealer.
The sole bid received is as follows:
|
BIDDER |
BID PRICE |
DBB or DRB QUALIFIED |
EQUALIZATION CREDIT AMOUNT |
EQUALIZED PRICE |
|
Jorgensen Ford Sales, Inc. |
$126,591 |
DBB / 2% |
$2,531.82 |
$124,059.18 |
Six of the 13 potential bidders are not located within a 40-mile radius of DWSD and did not meet the geographic minimum qualification. A low bid inquiry email was sent to six of the potential bidders located within 40 miles of DWSD. The responses were:
|
Vendor |
Low Bid Inquiry Response |
Location |
|
Michigan CAT |
Bid product equipment too small to bid. |
Brownstown, MI |
|
NBC Truck |
Cannot provide equipment. |
Roseville, MI |
|
Santoro, Inc. |
Will provide the up fitting equipment through Jorgensen Ford. |
Detroit, MI |
|
Versalift formerly Canton |
Overlooked bid deadline. |
Shelby Twp., MI |
|
Bostick Truck |
Does not provide this equipment. |
Pontiac, MI |
|
Wolverine Truck |
Overlooked bid deadline. |
Dearborn, MI |
Although some of the vendors indicated they missed the bid opportunity, the solicitation was publicly advertised for a period of 23 days. Based on the information above, it is recommended that Jorgensen Ford Sales, Inc., the sole responsive and responsible and responsive bidder, be awarded the contract.
SUMMARY
Projected Order Date: October 25, 2019
Projected Delivery Date: Four weeks from date ordered (approximately 11/21/19)
Purchase Amount: $126,591
Purchase Order No.: 3035959
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 Committee on October 2, 2019. Per the DWSD Procurement Policy, no additional approvals are required.