Subject
title
Award a Contract in the form of a Purchase Order to Jesco, Inc., of South Plainfield, NJ, for the purchase of one John Deere Backhoe Loader in the amount of $136,475 consistent with the Terms and Conditions of the Cooperative Purchase Sourcewell Contract #011723-JDC.
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Department
PW - Fleet Services
Recommendation
Staff recommends the Mayor and Council award a Contract in the form of a purchase order to Jesco Inc., of South Plainfield, NJ, for the purchase of one John Deere Backhoe Loader in the amount of $136,475 consistent with the terms and conditions of the cooperative purchase Sourcewell Contract #011723-JDC.
Discussion
This is for the purchase of one John Deere Backhoe Loader. This unit will replace unit #507, a 2009 John Deere Backhoe Loader. This piece of equipment is used by the Sewer department for the dig up and repair of sewer lines. Due to its age and condition, excessive corrosion, replacement is recommended.
Mayor and Council History
This is the first time this item has been brought to the Mayor and Council.
Procurement
This is a cooperative rider purchase through the Sourcewell local government service cooperative, which serves as a municipal contracting agency throughout the nation with competitively awarded contracts. The City of Rockville (City) is a member of this cooperative and the Procurement Division has used Sourcewell for the purchase of goods and services in the past.
The Sourcewell Contract was competitively procured with a Request for Proposals that was published November 15, 2022. The Contract between John Deere Construction Retail Sales and Sourcewell was entered into on April 5, 2023. The term of the Sourcewell Contract expires April 14, 2027. The pricing and warranties are contained in the Sourcewell Contract. Consistent with the Sourcewell Contract, the City is ordering the John Deere backhoe through Jesco, Inc., an authorized dealer or reseller of John Deere equipment. Jesco, Inc. is honoring the price contained within the Sourcewell Contract.
Purchasing off a Sourcewell contract provides the City with highly competitive pricing, as this contract is for a large number of vehicles that are purchased nationwide by its 50,000+ members. By using the Sourcewell contract, the City is able to benefit from high volume discount pricing that would not be attainable by issuing a competitive solicitation for only one vehicle.
In accordance with the Rockville City Code, Section 17-71(b), Cooperative Procurement, the City may contract with any contractor who offers goods, services, insurance, or construction on the same terms as provided to other State or local governments or agencies thereof, who have arrived at those terms through a competitive procurement procedure similar to the procedures used by the City. The draft purchase order is attached as Attachment A and the Sourcewell contract is attached as Attachment B.
Jesco Inc. is a non-Minority, Female, or Disabled or Veteran (non-MFD-V) business.
To view all contract documents, please click the link below:
<https://www.swisstransfer.com/d/951f8487-7288-4dc0-9f91-735664e0e3a7>
Fiscal Impact
The adopted FY 2025 budget (Attachment C) includes $135,300 for one Backhoe Loader truck. There is adequate funding in the Department of Public Works Fleet Services Division for this award.
Next Steps
Upon Mayor and Council approval, the Procurement Division will issue a purchase order to Jesco Inc. for the purchase of one Backhoe Loader.