Rescind awards of RFB No. 2021-0344-O and RFB No. 2021-0433-O for two (2) Haul Trucks and two (2) Kenworth T370 12-14 Dump Trucks with Ox Bodies Dump Body to MCH Kenworth and to approve the purchase of three (3) Dump Trucks and two (2) Haul Trucks for Fleet Services to be used by various departments in the amount of $680,591 from Southwest International Trucks through an existing contract; and authorizing the City Manager to execute all necessary documents. (BuyBoard Contract No. 601-19) Approved

On May 10, 2021, City Council awarded RFB No. 2021-0344-O for two (2) Haul trucks for Fleet Services to be used by Utility District 1 and Utility District 2 to MHC Kenworth. MHC Kenworth was unable to provide the units as bid.

On July 26,2021, City Council awarded RFB No. 2021-0433-O for two (2) Kenworth T370 12-14 Dump Trucks with Ox Bodies Dump Body for Fleet Services to be used by various departments to MHC Kenworth. MHC Kenworth was unable to provide the units as bid.

City Council awarded RFB numbers 2021-0344-O and 2021-0433-O to purchase two (2) Haul Trucks and two (2) Dump Trucks; however, those orders have been cancelled by the manufacturer and staff recommends rescinding those awards. It is the recommendation of Fleet Services to purchase two (2) Haul Trucks and three (3) Dump Trucks in the amount of $680,591 from Southwest International Trucks through BuyBoard Cooperative 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 previous order for Haul Trucks were scheduled replacements from Capital Outlay FY2020-21 in Utility District #2 and Utility Cut Services.  The haul trucks are used to transport backhoes, shoring, and other equipment for excavation and repair of water and sewer infrastructure. The previous order for two (2) Dump Trucks were scheduled replacements from Capital Outlay FY2018-19 in Utility District #1 and Utility District #2.  The additional one (1) dump truck is a scheduled replacement from Capital Outlay FY2023-24 in Utility District #2. The dump trucks are used for transporting concrete removed for street and sidewalk repairs, transporting dirt for backfilling after repairs, and sanding operations during winter storm events. 

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 and the canceled orders have impacted operations.
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. 2023-0310-O)

Funds are available in the FY 2022-23 Equipment Replacement Fund budget to purchase two (2) Haul Trucks and three (3) Dump Trucks in the total amount of $680,591 from Southwest International Trucks. This purchase is for the scheduled replacements of unit 98194 Truck, Tractor in Utility District #1; unit 98195 Truck, Tractor in Utility District #2; unit 07804 Truck, Dump, 12-14 Cubic Yard in Utility District #2; unit 11801 Truck, Dump, 6-7 Cubic Yard in Utility Cut Services; and unit 13854 Truck, Dump, 12-14 Cubic Yard in Utility District #2. The additional funds needed for this purchase, in the amount of $87,491 are available from savings in previous Equipment Replacement Fund purchases.

Approval of this purchase relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.