It is the recommendation of Fleet Services to purchase one (1) Komatsu Model PC55MR-5 Compact Hydraulic Excavator in the amount of $84,608 from Kirby-Smith Machinery, Inc. through BuyBoard Contract No. 597-19. Fleet Services and Purchasing have reviewed multiple Cooperative Contract quotes and found this to be the best value for the City.
This unit is a scheduled replacement from Capital Outlay FY20-21 for unit 00369 Truck, Pickup, 1 Ton, Flat Bed in Cost Center 766 Utility District 1 and unit 11501, Backhoe with Loader Four Wheel Drive in Cost Center 763 Utility District 2. Due to operational demands, it is necessary to purchase at this time.
The purchase of this unit is necessary for the following reasons:
1. This unit is essential to Utility District 1’s daily operations and is required to maintain current service levels.
2. The old unit is 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 unit.
3. If the unit is not replaced, we will incur additional maintenance costs and the salvage value will be greatly depreciated. In addition, the older, aging unit 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. 597-19 / City of Plano Internal Contract No. 2021-0359-O)