Title:
Title
Cooperative Purchase Agreement: Replacement Generators
End
FileID
File ID: 2019-01209
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement with Clark Equipment Company dba Doosan Portable Power (Contract No. 052015-CEC) for the purchase of four replacement generators from an authorized dealer, Pac Machine Co., Inc, for an amount not to exceed $621,407; and 2) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
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-Agreement
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase four generators for the Department of Utilities, Systems Maintenance Section. The generators will be used as emergency equipment to run sumps and pumps across the City in the event of a power outage.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.
Economic Impacts: None
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.
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: After reviewing the available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with Clark Equipment Company dba Doosan Portable Power 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.
Financial Considerations: The recommended purchase, in a total amount not to exceed $621,407 will be made from the Department of Public Works Fiscal Year (FY) 2019/20 operating budget (Fleet Fund, Fund 6501) and will be charged to the Wastewater Plant Regulatory Improvement Project (X14131600). Sufficient funding exists in the Department of Public Works FY2019/20 operating budget and the Wastewater Plant Regulatory Improvement Project (X14131600) to support the recommended purchases.
Local Business Enterprise (LBE): Clark Equipment Company dba Doosan Portable Power 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.