TITLE
Recommendation to adopt Specifications No. ITB FS21-003 and award contracts to Powerland Equipment, Inc., of Valley Center, CA, and Arizona Machinery, LLC, dba Stotz Equipment, of Montclair, CA, for the purchase of John Deere parts and repair services, in an annual aggregate amount of $150,000, with a 15 percent contingency in the amount of $22,500, for a total annual contract amount not to exceed $172,500 for a period of two years, with the option to renew for three additional one-year periods; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contracts, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Powerland Equipment, Inc., and Arizona Machinery, LLC, dba Stotz Equipment, for the purchase of John Deere brand parts and repair services. Utilizing multiple vendors will enable the Fleet Services Bureau in the Financial Management Department to obtain needed parts quickly and to ensure that repair services can be distributed between both vendors to minimize downtime for essential operations.
There are 18 pieces of John Deere equipment in the City’s fleet, including tractors, backhoes, mowers, and all-terrain vehicles. These units are used by the Long Beach Airport, Parks, Recreation and Marine, Police, and Public Works Departments for operations citywide.
The bid was advertised in the Long Beach Press-Telegram on October 19, 2020, and 39 potential bidders specializing in construction equipment parts and repair services were notified of the bid opportunity. Of those bidders, six downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division in the Financial Management Department, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 35 local, minority-owned, and women-owned business groups. Two bids were received on November 6, 2020. Of those bidders, none were Minority-owned Business Enterprises (MBEs), none were Women-owned Business Enterprises (WBEs), one was a certified Small Business Enterprise (SBE), and none were Long Beach businesses (Local). Powerland Equipment, Inc. (SBE), and Arizona Machinery, LLC, dba Stotz Equipment (not a MBE, WBE, SBE, or Local), were the lowest responsible bidders.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, four Long Beach vendors were notified to submit bids, of which one downloaded and none submitted bids. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on December 23, 2020, Business Services Bureau Manager Tara Yeats on December 17, 2020, and by Budget Management Officer Rhutu Amin Gharib on December 22, 2020.
SUSTAINABILITY
All off-road construction equipment is compliant with state and local regulations for air toxin and pollutant emissions.
TIMING CONSIDERATIONS
City Council action is requested on January 19, 2021, to ensure contracts are in place expeditiously.
FISCAL IMPACT
The total annual aggregate contract amount will not exceed $172,500, inclusive of a 15 percent contingency, and is budgeted in the Fleet Services Fund Group in the Financial Management Department. Maintenance and repair costs are collected through the Fleet Services Memorandum of Understanding (MOU) regular monthly charges to multiple funds and departments. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER