Subject:            REPORT ON BIDS FOR TWO TRACTORS WITH BACKHOES

 

 

RECOMMENDATION

 

Report on bids and award the purchase of two (2) tractors with backhoes to the lowest responsive bidder, GCS Western Power (Hayward), at a total cost of $126,380.72, including tax, and authorize the Director of General Services to execute the purchase order for the:

 

            a.   immediate purchase of two (2) units; and

b.            subsequent purchase of additional units at the same bid price without further Council action other than the appropriation of necessary funds.

 

BACKGROUND

 

The General Services Department/Fleet Management Division has requested the purchase of two (2) tractors with backhoes.  The Department of Transportation will utilize these units for sewer maintenance throughout the City.

 

These units are replacements for tractors that have met or exceeded their replacement criteria.

 

ANALYSIS

 

A notice inviting bids was published April 24, 2001.  Additionally, bid packages were mailed to fifteen (15) vendors.  Bids were publicly opened May 7, 2001 and are listed below:

                        Warranty &

                BID                                8% Sales Tax                                Freight                                Total

           

Peterson Tractor (San Jose) 420D

             $104,050.00

        $8,324.00

                $5,100.00

        $117,474.00

Peterson Tractor (San Jose) 420D IT

             $111,100.00

       $8,888.00

               $5,100.00

         $125,088.00

GCS Western Power (Sacramento)

           $111,824.00

        $8,945.92

            $5,610.80

       $126,380.72

Western Traction (Union City)

             $114,210.00

         $9,136.80

                $5,120.00

         $128,466.80

Tractor Equip (San Jose)

          $115,426.00

          $9,234.08

             $6,110.00

         $130,770.08

 

Peterson Tractor bid two units.  Both units failed to meet the specifications, as they did not meet the minimum horsepower specified.  Both Peterson units have 85 horsepower.  The minimum horsepower specified is 90 and GCS Western Power is the lowest responsive bidder meeting the specifications as written.

 

San Jose Municipal Code Section 4.12.148 entitled “Additional Quantities,” states “...the City Manager may purchase additional quantities at the award price..., if such options for additional quantities was approved by Council.”

 

In all formal bids issued, the Department of General Services asks each vendor if the price will be guaranteed for additional quantities. When that option is offered, the Department seeks Council approval to make future awards should the need arise for additional units.

 

PUBLIC OUTREACH

 

This bid was advertised in the San Jose Post Record and was placed on the City of San Jose web site.

 

COORDINATION

 

This memorandum has been coordinated with the City Attorney's Office, Budget Office, and the Department of Transportation

 

BUDGET REFERENCE

 

Fund:        Vehicle Maintenance & Operating Fund-552

Amount:        $8,222,508

Budget Document:        2000-01 Adopted Operating Budget, pg. 1045

 

 

FRANCIS B. MCVEY

Acting Director, General Services Department