It is the recommendation of Fleet Services to purchase two (2) Haul Trucks in the amount of $176,885 from MHC Kenworth through BuyBoard Contract No. 601-19. Fleet Services and Purchasing have reviewed multiple Cooperative Contract quotes and found this to be the best value for the City. The rescission of the original award of this purchase to Industrial Power Truck and Equipment is requested in a companion agenda item.
These units are scheduled replacements from Capital Outlay FY18-19 for unit 98194 Truck, Tractor in Cost Center 766 Utility District 1 and unit 98195 Truck, Tractor in Cost Center 763 Utility District 2. Due to operational demands, it is necessary to purchase at this time.
The purchase of these units is necessary for the following reasons:
1. These units are essential to these departments’ daily operations and are required to maintain current service levels.
2. The old units are in need of replacement. The determination for the need of replacement is based on age, usage, maintenance cost, and re-sale value. Based on these criteria, Fleet Services recommends the replacement of the above units.
3. If these units are not replaced, we will incur additional maintenance costs and the salvage values will be greatly depreciated. In addition, the older, aging units will limit the users’ ability to perform their duties because of increased breakdowns and additional downtime for repairs.
The City is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (BuyBoard Contract No. 601-19 / City of Plano Internal Contract No. 2021-0344-O)