Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to purchase six heavy-duty utility dump trucks with mounted hydraulic cranes from Jorgensen Ford Sales, Inc. for an amount not-to-exceed $846,846, 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. 19-00287
Purchase Order No. 3037696
Purchase Amount: $846,846
Delivery Date: Four weeks from date ordered (approximately 12/2/19)
Supplier: Jorgensen Ford Sales, Inc., 8333 Michigan, 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. 3037696
Purchase of six heavy-duty utility dump trucks with mounted hydraulic cranes 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 six heavy-duty utility dump trucks with mounted hydraulic cranes from Jorgensen Ford Sales, Inc. for an amount not-to-exceed $846,846, 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 purchase, repairs, maintenance and replacement of all DWSD owned vehicles and equipment. Dump trucks are used by several divisions year round to support the daily operations of DWSD. These six heavy-duty utility dump trucks include mounted cranes, which are used to lift and lower materials, and will replace outdated equipment.
DWSD has an aging vehicle fleet with many of the vehicles close to, if not exceeding, their useful life cycle. DWSD Fleet Operations is responsible for maintaining usable, effective, and reliable vehicles and equipment. The purchase of these six new vehicles will aid in DWSD’s ability to provide customers with effective, reliable service.
PROCUREMENT METHOD
This purchase was procured through a Request For Bids (RFB) and was advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 27 calendar days. MITN published this opportunity to 331 companies and 14 firms downloaded the bid package.
The minimum qualifications in the RFB required warranty coverage, business located within a 40-mile radius of DWSD Fleet and credentials as an authorized manufacturer sales and service facility or class “A” licensed dealer.
One bid was received:
|
BIDDER |
DBB or DRB QUALIFIED |
BID PRICE |
EQUALIZED CREDIT AMOUNT |
EQUALIZED PRICE |
|
Jorgensen Ford Sales, Inc. |
$846,846 |
DBB / 2% |
($16,936.92) |
$829,909 |
The RFB was downloaded and viewed by 14 potential bidders. Nine of the 14 potential bidders were not located within the required 40-mile radius of DWSD and did not meet the geographic minimum qualification. A low bid inquiry was emailed to four of the potential bidders located within 40-miles of DWSD to inquire as to why they did not submit a bid. The responses were:
|
Vendor |
Low Bid Inquiry Response |
Location |
|
Versalift Formerly Canton Truck |
Cannot provide equipment specified. |
Shelby Twp., MI |
|
Santoro |
Not a class “A” licensed dealer for chassis. |
Detroit, MI |
|
North River Truck |
Elected not to bid. |
Mt. Clemens, MI |
|
NBC Truck |
Elected not to bid. |
Roseville, MI |
Based on the information above, it is recommended that Jorgensen Ford Sales, Inc., the sole responsive and responsible bidder, be awarded the contract.
SUMMARY:
Purchase Order No. 3037696
Purchase Amount: $846,846
Proposed Delivery Date: Four weeks from date ordered (approx. 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 purchase was presented to the Finance Committee on October 2, 2019. Per the DWSD Procurement Policy, no additional approvals are required.