Sole Bid Received for S40-S25703 - Approve an award to Mustang Machinery Company, Ltd. dba Mustang Cat in an amount not to exceed $634,997.00 for Caterpillar replacement parts and repair services for the Fleet Management Department.
Specific Explanation:
The Director of the Fleet Management Department and the Chief Procurement Officer recommend that City Council approve an award to Mustang Machinery Company, Ltd. dba Mustang Cat on its sole bid in an amount not to exceed $634,997.00 for Caterpillar replacement parts and repair services for the Fleet Management Department (FMD). It is further requested that authorization be given to make purchases, as needed, for a thirty-six month term with two (2) one (1) year options. The award consists of a price list for various Caterpillar replacement parts; which includes but are not limited to belt tensioners, fuel check valve, transfer pump, water pump, EGR cooler, starting motor, solenoid, oxygen sensor, wiring harness, fuel injectors, fuel pumps, reconditioned engines and engine blocks. These materials will be used by the FMD to repair and maintain equipment with Caterpillar engines citywide. This award also includes a $338,912.50 labor component for the repair of equipment that cannot be performed by City maintenance personnel.
The project was advertised in accordance with the State of Texas Bid Laws. Three prospective bidders downloaded the solicitation document from SPD's e-bidding website and one bid was received. Mustang Machinery Company, Ltd. dba Mustang Cat is the only authorized distributor to provide repair parts and services on Caterpillar engines in the greater Houston area and surrounding counties.
This item will replace Emergency Purchase Order Item No. 19, approved by Council Motion No. 2016-0348, passed July 13, 2016.
M/WBE:
Zero-Percentage Goal document approved by the Office of Business Opportunity.
Hire Houston First:
This proposed award requires compliance with the City's "Hire Houston First" (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, the proposed contractor does not meet the requirements of HHF; no Hire Houston First firms were within three percent.
Fiscal Note:
Funding for this item is included in the FY17 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
______________________________________ _____________________________________
John J. Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
ESTIMATED SPENDING AUTHORITY
Department
|
FY17
|
Out Years
|
Total
|
Fleet Management
|
$126,999.40
|
$507,997.60
|
$634,997.00
|