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HomeMy WebLinkAbout6. Village Manager's Report 06/04/2013Motmt Mount Prospect Public Works Department t INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS ITCH r/ 3 FROM: VEHICLE MAINTENANCE SUPERINTENDENT DATE: MAY 30, 2013 SUBJECT: REJECT SINGLE BID FOR THE PURCHASE OF ONE (1) N STEP VAN Background In the current budget, there are sufficient funds available to replace unit 2730. 2730 is a 1995 Chevrolet, P -30 Step Van, used by the Public Works Department's Water /Sewer Division. This truck is primarily utilized as a first response vehicle for water main break repairs and water /sewer utility maintenance. In preparation of soliciting bids for the purchase of this truck, staff has looked at several other step vans currently utilized for the same purpose in other municipalities. Staff has concluded the step van recently purchased by the Village of Arlington Heights Public Works Department can largely meet our needs. The base bid was written to include the majority of their design. Bid Results On Tuesday, May 7, at 1:00 P.M., sealed bids for the proposed purchase of one (1) new walk -in step van with necessary options installed and mounted were opened and read aloud. Eighteen (18) invitational bids were distributed on April 18 and a public notice was placed in a local newspaper as required. Only one (1) bid was received. The results are as follows: Bidder Make /Model Delivery Bid Price Badger Truck Center Ford F -59, Utilimaster Body 210 days $129,690 Milwaukee, WI Sauber MFG Upfitter Discussion The only bidder, Badger Truck Center, Inc. of Milwaukee, Wisconsin complied with the majority of our bid specifications, submitted necessary bid security, and properly signed all necessary bid documents. However, there are insufficient funds in the current budget to consider their bid. Presently, only $120,000 is available in the vehicle replacement fund for this proposed procurement. The Badger Truck Center bid received exceeds allocated funding by $9,690. I have investigated the lack of bidders and learned two (2) other vendors had unexpected delays in securing the required bid security (bid bond or cashier's check). These bidders have indicated a strong desire to re -bid if we chose not to award a contract. May 30, 2013 Reject Bid for Purchase of One (1) New Walk -in Step Van Page 2 of 2 Additionally, other potential bidders reported difficulty compiling complete component pricing. Typically, production of this vehicle type involves three (3) vendors; each responsible for a component of the vehicle. One vendor is the drivetrain and chassis manufacturer. Another is the service body manufacturer. Finally, the third vendor is the post- market fabricator who makes and installs the cabinetry, shelving, interior storage spaces, lighting, and electricity distribution system. To submit a bid, one vendor needs cost commitments from the other two. Most often, the vendor who submits the bid is the drivetrain and chassis manufacturer (i.e. a Ford or Chevrolet truck dealer). To accommodate these unusually complex relationships, we propose to rebid the purchase and extend the bidding period to 45 days. Finally, the base bid price we received was approximately 20% more than the Arlington Heights vehicle purchased in 2011. Post -bid discussions with vendors suggest that at least a portion of this increase is due to higher costs for all of the components parts including the chassis /drivetrain, body, and post- market fabrication. Staff proposes to restructure the bid document, making some fabricated features optional, with the intent of securing a base bid within the allocated budget. Bid Recommendation I therefore recommend the Village Board reject the only bid for the proposed purchase of one (1) new current model walk -in step van aforementioned as submitted by Badger Truck Center, Inc. of Milwaukee, Wisconsin as being over budget and lacking competitive bids. The bid specifications will be modified and sent out for a rebid. �Yames R. Breitzman Vehicle Maintenance Superintendent I concur with the recommendation. S Director of Public Works JB C: Sean P Dorsey, Director of Public Works Jason Leib, Deputy Director of Public Works H: \Administration\BIDS\RESULTS\2730 Reject Single Bid 5- 29- 13.doc