Subject
title
Award a Contract in the Form of a Purchase Order to 72 Hour LLC, d/b/a National Auto Fleet Group of Watsonville, CA, for the Purchase of One Freightliner M2106 Utility Truck in the Amount of $283,582.00 Consistent with the Terms and Conditions of the Cooperative Purchase Sourcewell Contract #060920-NAF.
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Department
PW - Fleet Services
Recommendation
Staff recommends that the Mayor and Council award a contract in the form of a purchase order to 72 Hour LLC, d/b/a National Auto Fleet Group of Watsonville, CA, for the purchase of one utility truck in the amount of $283,582.00 consistent with the terms and conditions of the Cooperative Purchase Sourcewell Contract #060920-NAF.
Discussion
The purchase of a utility truck was approved in the FY25 budget (Attachment 1). The new truck will replace Unit #496 (2008 International). This vehicle is 16 years old and has the expected wear and tear for its age. Due to its extensive use, the truck has accumulated a high number of engine hours. Furthermore, because of its age, parts for the vehicle are increasingly difficult to obtain.
Utility trucks are used by the Water Division when performing maintenance to the water distribution system, including water main breaks. These trucks carry the materials and tools needed to find and repair problems in the City’s water system.
Per Resolution 02-22, Transition the City On-Road Fleet to Cleaner and More Efficient Fuel Sources, staff evaluated alternatives for this vehicle replacement. This type of vehicle is not currently available as an electric or hybrid vehicle. Additionally, this vehicle is needed for 24-hour utility operations. As the vehicle would need to be charged, it would not be operationally possible to utilize an electric vehicle. Staff will continue to monitor the market for available clean fuel and hybrid models that may be suitable for the heavy-duty fleet services.
The vehicle being replaced will be disposed of in accordance with City procedures via auction.
Mayor and Council History
This is the first time this agenda item has been brought before the Mayor and Council.
Procurement
This is a purchase order that serves as a contract and the City of Rockville (City) is using the cooperative purchase process to make this purchase through the Sourcewell local government service cooperative. Sourcewell serves as a municipal contracting agency throughout the nation with competitively awarded contracts. The City Procurement Division has used Sourcewell for the purchase of goods and services in the past.
Purchasing through a Sourcewell contract provides the City with highly competitive pricing, as Sourcewell competitively bids 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 Section 17-71(b) of the Rockville City Code, 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.
In accordance with Rockville City Code, Section 17-39(a), Awarding Authority, all contracts, including purchase orders, over $250,000 shall be awarded by the Mayor and Council. The contract, in the form of a purchase order, will incorporate the terms and conditions of the applicable Sourcewell contract for this purchase. The purchase order will be signed by both the City and the vendor.
72 Hour LLC, d/b/a National Auto Fleet Group is a non-Minority, Female, Disabled or Veteran (non-MFD-V) business.
The draft purchase order is attached as Attachment 2 and the Sourcewell contract is attached as Attachment 3.
To view all contract documents, please click the link below:
<https://www.swisstransfer.com/d/08a9e7b8-2edc-482a-b19c-ab1e938bfc3c>
Fiscal Impact
The budgeted amount in FY25 for one utility truck is $290,090. There is adequate funding in the Department of Public Works Fleet Services Division vehicle replacement account for this award.
Next Steps
Upon Mayor and Council approval, the Procurement Division will issue a Purchase Order to 72 Hour LLC d/b/a National Auto Fleet Group for the purchase of one (1) utility truck.