Title
Cooperative Purchase Contract: New Pipeline Inspection Van
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FileID
File ID: 2025-00401
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) approving the use of the Houston-Galveston Area Council (HGAC) cooperative purchase contract with CUES Inc. (Contract No. SC06-24) for the purchase of one pipeline inspection van in an amount not to exceed $543,446; and 2) authorizing the City Manager or the City Manager’s designee to take any necessary actions to complete the purchases specified above.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-1163, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-5869, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase one new pipeline inspection van for the Department of Utilities, Wastewater Collection Section. The van will be used to inspect pipes for debris and maintenance issues within the wastewater collection system.
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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:
California Environmental Quality Act: 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.
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478) and California Air Resource Board (CARB) regulations as there is no comparable zero emission model available for replacement.
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Commission/CommitteeAction
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: After reviewing the available purchase options, the Fleet Management Division has determined that the Houston-Galveston Area Council (HGAC) cooperative purchase contract with CUES, Inc. represents the most advantageous purchasing strategy. The contract was competitively bid nationally, and HGAC receives greater discounts from the manufacturer due to a higher purchase volume.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement approach increases pricing competitiveness and lowers operating 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 contracts 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 $543,446, will be made from the Department of Public Works Fiscal Year (FY) 2024/25 operating budget (Fleet Fund, Fund 6501) and charged to the Wastewater Fleet Project (I06146000, Fund 6006). Sufficient funding is available in the Department’s FY 2024/25 operating budget and the Wastewater Fleet Project (I06146000) to support the recommended purchase. The funding for this unit was approved by City Council on July 23, 2024, by Resolution 2024-0238, using the FY24/25 Fleet MYOP with a not to exceed amount of $1,300,000.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): 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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