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HomeMy WebLinkAbout04/21/2015 NJPA Contract for the Purchase of one (1) New 2015 John Deere Backhoe/Loader 410LMount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: ACTING VILLAGE MANAGER DAVID STRAHL FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: APRIL 13, 2015 SUBJECT: ACCEPT NJPA CONTRACT FOR THE PURCHASE OF ONE (1) NEW 2015 JOHN DEERE BACKHOE/LOADER 410L ($107,779.00) Background In the current budget, there are sufficient funds available to replace unit 2726. 2726 is a 2000 John Deere 410E Backhoe/Loader used by the Public Works Department to excavate water mains, sewer lines, minor street repairs, and grounds work. It is also used to load sand, black dirt, stone, gravel, and salt. During the winter months, it is used to help with snow removal operations. Replacement Policy This vehicle has been evaluated utilizing our detailed comprehensive replacement policy. This policy uses a point -based criterion, which rates the following four (4) major factors to a baseline when considering a unit for replacement: Age, mileage, repair & maintenance (R&M) cost, and condition of the body/mechanical components. A point total equaling or exceeding eleven (11) out of sixteen (16) indicates that the vehicle should be recommended for replacement. This vehicle scored a total of twelve (12) points indicating a higher rating and should be placed on the priority list to be replaced. The vehicle condition evaluation form and summary report have been attached as Exhibits A and B respectively. Additionally, I have included the life cycle cost analysis on Exhibit C, which breaks out our total ownership cost. Other Factors If the service life is extended the following repairs should be performed: Rebuild hydraulic system pump, hoses and cylinders. The work is estimated to cost $11,000 including parts and labor. • Rebuild diesel engine to regain performance, which is estimated to cost $15,000.00. • Repair several transmission leaks, which may require an overhaul. The work is estimated to cost $5,000.00 including parts and labor. • Other needed repairs total $5,000.00 for an aggregate of $36,000.00. Our current backhoe/loader doesn't have the digging power or lifting capacity it had when new. These conditions are due to the hydraulic system/engine that has slowly worn in the past few years and is operating at approximately 80% of its capacity. To bring the performance back to Accept NJPA contract for the Purchase of one (1) New 2015 John Deere Backhoe/Loader 410L ($107,779.00) April 13, 2015 Page 2 of 2 full capacity, the hydraulic system and engine would have to be completely overhauled. In my opinion, to have these repairs done would not make financial sense. Additionally, the proposed purchase has 16 more horsepower, 1,500 lbs. more lifting capacity, and 220 lbs. more backhoe bucket force compared to our existing unit when new. Discussion The John Deere model we recommend purchasing is a 410L, which has a final Tier 4 diesel engine. This diesel engine has better fuel economy and is cleaner burning due to tighter EPA standards/technology. Additionally, this backhoe/loader has four wheel drive to perform better off road and in the snow. There is no local or State purchasing program for this vehicle. However, Public Works is part of a national joint purchase cooperative, the National Joint Powers Alliance (NJPA), through which the Village can procure this unit from West Side Tractor. Bid Recommendation I am recommending the Village Board accept the NJPA bid Contract Award #060311-JDC and authorize the purchase of one (1) new 2015 John Deere Backhoe/Loader 410L, from West Side Tractor Sales Co., of Wauconda, Illinois at a cost not to exceed $107,779.00, which includes a� credit of $21,000.00 for our existing 410E trade-in. The NJPA Contract is publicly bid and satisfies the public bidding requirements of the Village of Mount Prospect Purchasing Policy. Funds for this proposed purchase are fully funded through the Vehicle Replacement Fund and are available in the 2015 budget. Our past experience and review of recent sales prices on GovDeals has shown these types of specialized equipment have a higher resale value as a trade-in. Works JB Attachments C: Deputy Director of Public Works Jason Leib mes R. Breitzman Vehicle/Equipment Superintendent H:\Administration\BIDS\RESULTS\2726 Backhoe Purchase -4-2015\2726 Backhoe-NJPA BID Purchase, 4-2015.docx EXHIBIT A Village of Mount Prospect Vehicle/Equipment Condition Evaluation Form Unit # 2726 Assigned Dept. /Div. Public Works/Water Year: 2000 Make: John Deere Model: 410E Mileage: N/A Hours: 4,710 Date of Evaluation: 1/15/15 Performed By: John Schnittker System Diagnosis Estimated Repair Cost Engine Fair -20% Power Loss Rebuild -$15,000.00 Transmission Fair -Oil Leaks $5,000.00 Differential Good Exhaust System Good Cooling System Fair -Radiator Corrosion $2,500.00 Brakes Good Tires Fair -Front Tires $1,500.00 Steering Good Suspension Good HVAC Fair -Replace Blower Motor $500.00 Electrical Good Body/Frame Good Interior Fair -Window latches worn $500.00 Other- Hydraulics Total Estimated Repair Cost Fair -Replace hoses, extend cyl rebuild, Hyd pump rebuild $11,000.00 $36,000.00 Diagnosis Code Code Description Good Systems are functioning well and no major repairs are expected. Fair Some major repairs are needed, but unit can remain in service a little longer in current condition. Poor Major repairs are required as soon as possible to ensure unit safety and reliability. EXHIBIT B Village of Mount Prospect Vehicle/Equipment Evaluation Summary Report Unit # 2726 Assigned Dept. /Div. Public Works/Water Year: 2000 Make: John Deere Model: 410E Mileage: N/A Date of Evaluation: 1/15/15 Performed By: Jim Breitzman Ratings: Unit age: 15 Base Policy Age: 15 Points: 2 Mileage/Hrs: 4,710 Base Policy Mileage/Hrs: 5,000 Points: 2 Maintenance Cost: Repair and Maintenance Cost: $ 30,153 _ Purchase Price: 73,900 Repair and Maintenance Percentage of Purchase Price: 41 % Points: 4 Condition Evaluation: (attach vehicle Condition Evaluation Form) Estimated Repair Cost: $ 36,000 - Current Book Value: $ 21,000 Repair Cost Percentage of Current Book Value: 171 % Points: 4 Total Ownership Cost Per Mile: (Lifetime Fuel + R&M + Purchase Price) $ 115,633 Less Salvage Value $ 21,000 Net Lifetime Costs $ 94,633 Divided by Mileage/Hours 4,710 Operating Cost Per Mile/Hour $ 20.09 Total Points: 12 Comments and other considerations: This eauipment has Operated 4,710 hours durinsz its lifetime, which equals 141,300 engine miles. Superintendent's recommendation: This equipment has met its life expectancy and major repairs will be needed if service life is extended any longer based on condition. Total Point Evaluation: A point total equaling or exceeding eleven (11) indicates that the vehicle should be recommended for replacement. The point total is used to rank its replacement priority. The larger the number the higher the replacement priority will be. N .N >1 C Q v G � U CL W N � O v C � J = C 2 O a � a O V c LO N LA O O i N U) 0 U 11 L 0 N EA ca w O O N o_ 0 0 0 0 C N 0 0 co M 0 U a � m a� 2 C: T) wa) 0 a� 0 0000 0 ~ F ~ MM O ' (C O LO 0 o LO Lill a 1 64 vti to N ♦ r� r! r � t O V r G1 ♦ t 1{ >+ r r ` m i r i r r r O ' O rn♦ O 0 O O O O O O O O N O O O O O O O O O O O O O O O O O O O a O O O a O O N O) 00 cq ( M � }SOS N LA O O i N U) 0 U 11 L 0 N EA ca w O O N o_ 0 0 0 0 C N 0 0 co M