HomeMy WebLinkAbout02/18/2014 Purchase of One (1) New Articulating & Oscillating TractorMount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: VEHICLE /EQUIPMENT MAINTENANCE SUPERINTENDENT
DATE: FEBRUARY 7, 2014
SUBJECT: PURCHASE OF ONE (1) NEW ARTICULATING AND OSCILLATING
TRACTOR ($116,017)
Background
In the current budget, there are funds available to replace sidewalk utility tractor 4508. 4508 is
a 1999 Trackless MT5 used by Public Works staff to remove snow in our downtown business
district and on sidewalks along Northwest Highway, Central Road, Route 83, and at various
other locations throughout the Village.
We have operated two (2) of these articulating and oscillating "Trackless" brand tractors over
the last 15 -20 years to accomplish the needed snow removal in a timely and effective manner.
These tractors have served the Village well based on reliability, performance and overall
versatility. All of the current attachments (snowblower, broom, and plow) can be utilized on the
new proposed tractor and can be changed out quickly. This versatility is critical to public works
operations; it will allow us to share attachments with an existing Trackless tractor and limit the
variety of stocked parts. Most importantly, it will enable operators to maneuver the tractor in
confined downtown spaces with little or no retraining. Purchasing a comparable tractor from a
different manufacturer would require us to purchase additional commonly stocked parts.
The Materials Management Division of the State of Minnesota has prepared bid specifications
for municipal utility tractors and sent them to several vendors that provide these types of
tractors. Each vendor submitted a competitive bid price for the specific manufacturer /model
they sell. The State of Minnesota has made this contract available to its state agencies and to
members of its state's Cooperative Purchasing Venture (CPV) program at the same prices,
terms, and conditions. I have reviewed the specifications and field- demonstrated another
manufacturer's model to insure the new Trackless machine will continue to be the most cost
effective choice available for our needs.
Replacement Policy
This equipment 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 /hours, 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, which is recommended
to be replaced. The vehicle condition evaluation form and summary report have been attached
as Exhibit A and B respectively. Additionally, I have included the life cycle cost analysis on
Exhibit C, which breaks out our total ownership costs.
February 7, 2014
Purchase of one (1) New Articulating and Oscillating Tractor ($116,017)
Page 2 of 2
Other Factors
• The articulating pivot assemblies are due for a major rebuild. The work is estimated to
cost approximately $4,000, including parts and labor.
• The hydraulic steel lines and hoses are fatigued from age /corrosion and are due for
complete replacement. This work is estimated to cost between $3,500 and $4,500.
• The high / low transmission is showing signs of wear and will need rebuilding soon. The
cost is estimated to range between $4,500 and $5,500, including parts and labor.
• The hydrostatic pump is due for a major overhaul. The cost is estimated to range
between $5,000 and $6,000, including parts and labor.
Discussion
Our local Trackless dealer, EJ Equipment, has offered the same pricing used on the State of
Minnesota's contract to us. EJ Equipment is the only Trackless dealer in Illinois, leading me to
believe the Village would not receive a better price from an out of state dealer by competitively
bidding this unique tractor on our own. In the past our Village Attorney has reviewed the
Minnesota contract details and states the Village Code permits the Village Board to waive
competitive bids in such a manner as it may approve, including its reliance on Minnesota's state
bid contract price, as it would be in the best interests of the Village. Therefore, it appears that
the most cost - effective procurement method for this tractor is to waive the competitive bidding
process and accept their proposal based on the State of Minnesota's contract (contract number
57282) pricing as released on January 1, 2013.
Purchase Recommendation
I am recommending waiving competitive bids for the purchase of one (1) new 2014 Trackless
MT6 Municipal Utility Tractor and accept the proposal submitted by EJ Equipment, Inc., of
Manteno, Illinois in an amount not to exceed $116,017.00. There are sufficient funds available
for this proposed purchase within the current Public Works Vehicle Replacement budget. We
received an optional trade in price of $11,000 . However, we anticipate a higher sales price
disposing the old tractor through GovDeals Internet auction.
) R. Breitzman
Vehicle /Equipment Superintendent
I concur.
Sean P. Dorsey
Director of Public Works
JB
Attachment
cc: Deputy Director of Public Works Jason Leib
H:\Administration \BIDS \RESULTS \Trackless Purchase4508MinnBidWVR2- 2014.doc
EXHIBIT A
Village of Mount Prospect
Vehicle/Equipment Condition Evaluation Form
Unit # 4508Assigned Dept. /Div.Public Works-Street
Year: 1999Make: TracklessModel: MT5Mileage: N/A
Hours: 2,450Date of Evaluation: 1/28/14Performed By: Jim Breitzman
SystemDiagnosisEstimated Repair Cost
EngineGood
TransmissionFair-Due for rebuild$5,000.00
DifferentialFair-Spider gears$2,000.00
Exhaust SystemFair-Muffler$400.00
Cooling SystemFair-Water pump$500.00
BrakesGood
TiresFair$1,000.00
SteeringFair-Pivot assemblies$4,000.00
AttachmentsFair$2,200.00
HVACGood
ElectricalFair-Aged wires$1,000.00
Body/FrameFair-Body damage & floor rot$2,000.00
InteriorFair-Seat Worn$600.00
Other-Hydraulic SystemPoor-Lines and pump$9,500.00
Total Estimated Repair Cost$28,200.00
Diagnosis CodeCode Description
GoodSystems are functioning well and no major repairs are expected.
FairSome major repairs are needed, but unit can remain in service a little longer
in current condition.
PoorMajor 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 # 4508Assigned Dept. /Div.Public Works-Street
Year: 1999Make: TracklessModel: MT5Mileage: N/A
Date of Evaluation: 1/28/14Performed By: Jim Breitzman
Ratings:
Unit age:2
15BasePolicy Age: 15Points:
Mileage/Hrs:2
N/A / 2,450Base Policy Mileage/Hrs: N/A/2,500Points:
Maintenance Cost:
÷
Repair and Maintenance Cost: $54,030.00Purchase Price: $67,800.00
4
Repair and Maintenance Percentage of Purchase Price: 80%Points:
Condition Evaluation:
(attach Vehicle Condition Evaluation Form)
÷
Estimated Repair Cost: $ 28,200.00Current Book Value: $ 15,000
4
Repair Cost Percentage of Current Book Value: 188%Points:
Total Ownership Cost Per Mile:
++
TotalPoints:12
(Lifetime Fuel R&MPurchase Price) $ 133,800
Less Salvage Value $15,000
Net Lifetime Costs $ 118,800
Divided by Mileage/Hours2,450hrs
Operating Cost Per Mile/Hour$48.49
Comments and other considerations:
This machine will require several major repairs in the near future to maintain reliable and safe
operation.
Superintendent’s recommendation: This machine has metits life expectancy and severalmajor
repairs will be needed if service life is extended any longer based on current 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.
Cost