TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Bid: Backhoe/Loader
DATE: May 7, 2001
The attached resolution would accept the bid of North Carolina Equipment Company in the amount of $59,038 for a backhoe/loader for use in the Public Works Department’s Field Operations Division. Funding for this purchase is available from the FY 2000-2001 Fleet Replacement Fund.
The backhoe/loader would be used in the Streets Program, Field Operations Division of the Public Works Department. The primary mission of this item would be excavating, loading and moving materials.
The existing loader is a 1990 model. The planned service life for such equipment under our Fleet Replacement Program is ten years. This item has been retained in service for about one year beyond its planned service life. The new backhoe/loader would replace the 11-year-old unit, which would be sold as a surplus asset in accordance with our fleet management policy of “one-in-one-out.” Replacement of this equipment will enhance our capability to deliver routine street maintenance and construction services and to perform clean up and recovery operations after storms and special events.
The Fleet Replacement Fund for FY 2000-2001 includes $68,000 for the loader. The cost of the loader recommended for purchase is within the budgeted amount.
The “piggy backing” bid procedure is being used for this equipment. This process is authorized and explained in North Carolina General Statute 143-129(g), which is attached. In essence, it allows the Town to purchase this equipment at the same price as already bid to another government entity through the formal bid process. The City of Rocky Mount, NC opened bids on November 9, 2000. The advantages of using this method of procurement are a known favorable price and a delivery time much shorter than what we would expect with a formal bid.
The City of Rocky Mount went through the formal bid process (Bid Request Number 75731) during October/November, 2000. The bids were received and opened on November 9, 2000. The bid was awarded the North Carolina Equipment Company, Raleigh. The bid price of this loader (base bid plus selected options) is $59,038. North Carolina Equipment Company, Raleigh, NC has agreed to sell the Town of Chapel Hill a backhoe/loader at the bid price offered to the City of Rocky Mount.
The JCB backhoe/loader bid to the City of Rocky Mount at $59,038 (with options) meets all specifications for the Town of Chapel Hill and is within the budgeted amount in the Fleet Replacement Fund for FY 2000-2001.
That the Council adopt the attached resolution accepting the offer of the North Carolina Equipment Company for a backhoe/loader in the amount of $59,038.
A RESOLUTION ACCEPTING THE BID FOR THE PURCHASE OF A BACKHOE/ LOADER (2001-05-07/R-3)
WHEREAS, the Town of Chapel Hill has advertised notice of waiver of the formal bid process by legal notice in The Chapel Hill Herald Classifieds on April 27, 2001, in accordance with G.S. 143-129(g) for the purchase of a backhoe/loader; and
WHEREAS, a formal bid competition was held by the City of Rocky Mount with a bid opening on November 9, 2000 in accordance with G.S. 143-129; and
WHEREAS, the North Carolina Equipment Company offers the Town the backhoe/loader at the same price as offered to the City of Rocky Mount;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town implements the waiver of formal bid process in accordance with G.S. 143-129(g) and accepts the offer to sell of North Carolina Equipment Company in the amount of $59,038.
This the 7th day of May, 2001.
North Carolina General Statute 143-129(g):
(g) When the governing board of any municipality, county, or other subdivision of the
State, or the manager or purchasing official delegated authority under subsection (a) of this section, determines that it in the best interest of the unit, the requirements of this section may be waived for the purchase of apparatus, supplies, materials, or equipment from any person or entity that has, within the previous 12 months, after having completed a public, formal bid process substantially similar to that required by this Article, contracted to furnish the apparatus, supplies, materials, or equipment to:
(1) The United States of America or any federal agency:
(2) The State of North Carolina or any agency or political subdivision of the State: or
(3) Any other state or any agency or political subdivision of that state,
if the person or entity is willing to furnish the items at the same or more favorable prices, terms, and conditions as those provided under the contract with the other unit or agency. Notwithstanding any other provision of this section, any purchase made under this subsection shall be approved by the governing body of the purchasing municipality, county or other political subdivision of the State at a regularly scheduled meeting of the governing body no fewer than 10 days after publication of notice, in a newspaper of general circulation in the area served by the governing body, that a waiver of the bid procedure will be considered in order to contract with a qualified supplier pursuant to this section. Rules issued by the Secretary of Administration pursuant to G.S 143-49(6) shall apply with respect to participation in State term contracts.