Title:
Title
Cooperative Purchase Contracts: Street Sweepers [Published for 10-Day Review 08/27/2020]
End
FileID
File ID: 2020-00986
Location
Location: Citywide
End
Recommendation:
Recommendation
Pass a Motion: 1) approving the use of a cooperative purchase contract between Sourcewell and Global Environmental Products (Contract No. 122017-GEP) for the purchase of four Global Street Sweepers from an authorized dealer, Terry Equipment, Inc., in an amount not to exceed $1,237,910; and 2) authorizing the City Manager or the City Manager’s designee to execute the purchases specified above.
FileName
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163; Mark Stevens, Fleet Manager, (916) 808-5869, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase four street sweepers for the Department of Public Works, Recycling & Solid Waste Division. The sweepers remove dirt and debris from the City streets.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56 and Sacramento City Code Section 4.04.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This contract was posted for 10-day review on August 27, 2020 as required.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): 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 (CEQA) 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).
Commission/Committee Action: None
Rationale for Recommendation: The recommended purchase of the four street sweepers is approved in the Fiscal Year 2020/21 budget. One sweeper is a part of the normal replacement schedule completed by the Fleet Management Division each year. The other three street sweepers have been approved in the budget as additional vehicles. The additional trucks will assist the Solid Waste and Recycling Division to lessen the time between scheduled street sweepings.
After reviewing the available purchase options, Fleet Management has determined that using the Sourcewell cooperative purchase agreement with Global Environmental Products represents the most advantageous purchasing strategy. The recommended cooperative purchase agreement was competitively bid nationally, and Sourcewell receives greater discounts from the manufacturers, due to 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.
Financial Considerations: The recommended purchases in a total amount not to exceed $1,237,910 will be made from the Department of Public Works Fiscal Year (FY) 2020/21 operating budget (Fleet Fund, Fund 6501) and charged to the Department of Public Works Solid Waste Fleet Project (I06147000, Fund 6007). Sufficient funding exists in the Department’s FY2020/21 operating budget and the Public Works Fleet Project (I06147000) to support the recommended purchase. No general funds will be used for these purchases.
Local Business Enterprise (LBE): Global Environmental Products is not an 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.