TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Issue purchase order for Contract 08-989-11 Furnish and Deliver One Rubber Tire Material Handling Crane to the Lawndale Avenue Solids Management Area, to Howell Tractor and Equipment, LLC, in an amount not to exceed $1,189,673.00, Account 101-66000-634760, Requisition 1241694
Body
Dear Sir:
On May 1, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids, Contract 08-989-11 Furnish and Deliver One Rubber Tire Material Handling Crane to the Lawndale Avenue Solids Management Area.
In response to a public advertisement of July 2, 2008, a bid opening was held on July 22, 2008. The bid tabulation for this contract is:
HOWELL TRACTOR AND EQUIPMENT, LLC $1,189,673.00
Five hundred eighty-two (582) companies were notified of this contract being advertised and seven (7) companies requested specifications.
The Purchasing Agent has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for firms not bidding: outside their area of business. In light of these findings, the Purchasing Agent is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
Howell Tractor and Equipment, LLC, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $1,000,000.00, placing the bid of $1,189,673.00, approximately 19 percent above the cost estimate.
The Multi-Project Labor Agreement (MPLA) was not included in the contract because it is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Purchasing Agent be authorized to issue a purchase order for Contract 08-989-11, to Howell Tractor and Equipment, LLC, in an amount not to exceed $1,189,673.00. The bid deposit in the amount of $50,000.00 shall be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Purchasing Agent. Funds are available in Account 101-66000-634760.
Recommended, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 14, 2008