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HomeMy WebLinkAbout02/19/2013 Purchase of One (1) New Ford ExplorerMount Prospect 6/ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: FEBRUARY 11, 2013 SUBJECT: ACCEPT STATE OF ILLINOIS BID FOR THE PURCHASE OF ONE (1) NEW FORD EXPLORER ($30,356.44) Background In the current budget, there are funds available to replace vehicle 2708. This vehicle is a 2005 Ford Explorer XLT, with four wheel drive. The replacement of 2708 has been deferred from the 2012 budget year, due to the overall economy and budget constraints. Recently, we extended the normal replacement life cycle by two years for the majority of the Village fleet. This vehicle is used by the Director of Public Works to provide transportation for official Village business. 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 high rating and should be placed on the highest priority 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 on the vehicle: ➢ Refurbish/paint rusted sheet metal and dents $1,200 ➢ Replace all brakes and tires $1,700 ➢ Repair driver's seat cushion 300 Total estimated repair cost: $3,200 Coincidentally, the Suburban Purchasing Cooperative (SPC) also let a public bid for a similar Ford Explorer. However, the total cost of the same purchase is $434.56 higher. Replacement Recommendation It is my recommendation that a replacement for 2708 be purchased during the 2013 budget year. Accept State of Illinois Bid for the Purchase of one (1) New Ford Explorer ($30,356.44) February 11, 2013 Page 2 of 2 Bid Recommendation I am recommending the Village Board authorize the purchase of one (1) new 2013 Ford Explorer XLT vehicle from the State of Illinois Contract (PSD- 4017336) award winner Wright Automotive, Inc., of Hillsboro, Illinois at a cost not to exceed $30,356.44. The State of Illinois Contract is publicly bid and satisfies the public bidding requirements of the Village of Mount Prospect Purchasing Policy. Funds for this proposed purchase are currently available in the Vehicle Replacement Fund of the 2013 budget. Public Works vehicle 2708 will be sold through the NWMC live auction or GovDeals.com Internet auction later this year. R. Breitzman Vehicle /Equipment Superintendent JB Attachments C: Deputy Director of Public Works Jason Leib H:\ Administration \BIDS\RESULTS\2708 State Purchase VB Memo- 2- 2013.docx Village of Mount Prospect Vehicle /Equipment Condition Evaluation Form Unit # 2708 Assigned Dept. /Div. Public Works /Admin. Year: 2005 Make: Ford Model: Explorer XLT, 4x4 Mileage: 97,000 Hours: NA Date of Evaluation: 2/11/13 Performed By: Jim Breitzman System Diagnosis Estimated Repair Cost Engine Good Some major repairs are needed, but unit can remain in service a little longer in current condition. Transmission Good Differential Good Exhaust System Good Cooling System Good Brakes Fair -Needs all within year $800.00 Tires Fair -Needs all within year $900.00 Steering Good Suspension Good HVAC Good Electrical Good Body /Frame Fair -Some minor rust /dents $1,200.00 Interior Fair - Drivers seat worn $300.00 Other- Total Estimated Repair Cost Good $3,200.00 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 A Village of Mount Prospect Vehicle/Equipment Evaluation Summary Report Unit # 2708 Assigned Dept. /Div. Public Works /Admin. Year: 2005 Make: Ford Model: Explorer XLT, 4x4 Mileage: 97,000 Date of Evaluation: 2/11/13 Performed By: Jim Breitzman Ratings Unit age: 8 Base Policy Age: 10 Mileage/Hrs: 97,000 Base Policy Mileage/Hrs: 85,000 Maintenance Cost: Repair and Maintenance Cost: $ 10,500 = Purchase Price: $ 28,500 Repair and Maintenance Percentage of Purchase Price: 37 % Condition Evaluation: (attach Vehicle Condition Evaluation Form) Estimated Repair Cost: $ 3,200 _ Current Book Value: $ 5,000 Repair Cost Percentage of Current Book Value: 64 % Total Ownership Cost Per Mile: (Lifetime Fuel + R &M + Purchase Price) $ 55,000 Less Salvage Value $ 5,000 Net Lifetime Costs $ 50,000 Divided by Mileage /Hours 97,000 Operating Cost Per Mile /Hour $ .52 Points: 1 Points: 3 Points: 4 Points: 4 otal Points: 12 Comments and other considerations: This vehicle is operated by the Director of Public Works. Superintendent's recommendation: This vehicle has met its life expectancy and several repairs will be needed if service life is e xtended 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. EXHIBIT B Q � H 0 CL a N >+ w O v � a � o o 0 3 E �o O N cr 4m W O a � O 2 z > M o •� O N U W U. 0 U) 0 U a L W O �LL > fB (6 fa F- I-- O O O o 0 O O O Lo O / LO CO O C LO cs 60- V), M • I N o � 1 d ' 1 ' 1 >1 U � 1 J I m } r r ! 1 1 ' 1 r r Q C) r 1 Lot LO 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 O O O O O O O � � V� 64 611, 64!� ;SOO O N Cl- N O U 0) M a� N N U) O O O 0 U H m C) = O X O W O O Lri 411 0 L a) 0 m 0 F 0 0 0 C LO LO