TITLE
Recommendation to adopt Specifications No. ITB FS19-013 and award a contract to Sonsray Machinery, Inc., of Santa Fe Springs, CA, for the purchase of a Case 590 Backhoe Loader, in an amount not to exceed $136,136, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Sonsray Machinery, Inc., for the purchase of a Case 590 Super N Backhoe Loader for the Energy Resources Department. The unit being replaced is 19 years old and 7 years past its useful life expectancy. Downtime has increased with breakdowns and difficulty obtaining parts. Purchase of this backhoe loader is the most cost-efficient way to enable scheduled service to be completed. Purchase of this unit was approved in the FY 19 replacement plan.
The bid was advertised in the Long Beach Press-Telegram on November 9, 2018, and 31 potential bidders specializing in agriculture equipment were notified of the bid opportunity. Of those bidders, 13 downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh 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 28 local, minority, and women-owned business groups. Three bids were received on December 7, 2018. One was disqualified and another submitted a non-equivalent unit. Of those bidders, one was a Minority-owned Business Enterprise (MBE) and a Small Business Enterprise (SBE), and none were Women-owned Business Enterprises (WBEs) or Long Beach businesses (Local). Sonsray Machinery, of Santa Fe Springs, CA (not a MBE, WBE, SBE, or local), was the lowest responsible bidder.
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, two Long Beach vendors were notified to submit bids, of which one downloaded and none submitted a bid. 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 January 7, 2019, by Purchasing and Business Services Manager Sandy Tsang-Palmer on January 9, 2019, and by Budget Management Officer Rhutu Amin Gharib on January 14, 2019.
SUSTAINABILITY
The new unit complies with all local, state, and federal requirements for air quality emission standards.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB FS19-013 and award a contract concurrently is requested on March 5, 2019, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total purchase amount will not exceed $136,136, and is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). Costs for the loader have been collected through capital replacement charges to the Energy Resources Department (ER) through the Fleet Services Memorandum of Understanding monthly billing process. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER