Title
Cooperative Purchase Agreement: Replacement 3-Axle Tractors
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FileID
File ID: 2025-00002
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement with Peterbilt Motors Company (Contract No. 032824-PMC) for the purchase of two replacement 3-axle tractors from an authorized dealer, Western Truck Parts & Equipment, for an amount not to exceed $534,024; and 2) authorizing the City Manager or the City Manager’s designee to take any necessary actions to complete the purchases specified above.
Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-1163; schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163; akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Agreement
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase two replacement tractors for the Fire Department. The tractors will be used for the Urban Search and Rescue team to transport equipment and supplies to disasters and incidents to which they are deployed.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56 which requires City Council approval of actions of $250,000 or more and which provides for the use of cooperative purchase agreements without competitive bidding. (Section 3.56.240).
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy, adopted by City Council on December 12, 2017 (Resolution No. 2017-0478). Diesel tractors are essential in this instance as they are required to respond across the United States in a limited amount of time. Also, in the event of a natural disaster such as a hurricane or tornado, electricity may be down for several days or weeks. Charging an electric vehicle would not be conducive to this type of mission.
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Commission/CommitteeAction
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: After reviewing the available purchase options, Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with Peterbilt Motors Company represents the most advantageous purchasing strategy. The contract was competitively bid nationally, and Sourcewell receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
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FinancialConsiderations
Financial Considerations: The recommended purchase, in a total amount not to exceed $534,024 will be made from the Department of Public Works Fiscal Year (FY) 2024/25 operating budget (Fleet Fund, Fund 6501) and will be charged to the Fire Department Fleet Project (I06120024 and I06120025).
Sufficient funding exists in the Fire Department Fleet Project (I06120024 and I06120025) to support the recommended purchase.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Peterbilt Motors Company is not a Local Business Enterprise. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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