Staff recommends approval of the bid award and purchase request to Container Systems & Equipment Company, Inc. (CSE) for a total amount of $169,844.00.
The purpose of this solicitation is to purchase a new regenerative air street sweeper to replace existing unit 961. The unit being replaced is a 2001 Schwarze model A7000 street sweeper which currently has logged 5,644 hours.
According to the Environmental Protection Agency (EPA), street sweeping can be an effective and ‘best practice’ measure in reducing pollutants in stormwater runoff. The street sweeping function performed by the City’s Stormwater Division effectively reduces the amount of debris and pollutants entering Leesburg water ways and retention ponds. The alternative to street sweeping is the installation of many more expensive stormwater structures to capture the debris before it enters the water way. The structures must still be maintained and cleaned of the captured debris. The replacement of this sweeper along with the existing 2007 Schwarze will allow the Stormwater Division to continue an efficient and effective street sweeping and stormwater debris program.
The life expectancy of a street sweeper varies depending on the type of sweeper, conventional, regenerative air or vacuum and the environment in which it is used. Areas with heavy debris and higher concentrations of sand cause greater wear than areas with less aggressive debris. The sand collected in Leesburg, and most of Florida, is very abrasive and can shorten the life expectancy of a sweeper. An average life expectancy would be anywhere from 7 to 10 years. The City’s fleet services use an 8-year life on street sweepers for equipment replacement planning. The existing unit being replaced was purchased in May 2001which places the unit 1 year past its’ anticipated replacement date.
The fleet services division prepared bid specifications detailing the minimum desirable specifications. The purchasing division issued Invitation to Bid 100331 on August 20, 2010 with the specifications. On August 31, 2010 three responses to the ITB were received and are summarized here for your review.
Fleet Services reviewed the bid responses and has selected the second low bidder, Container Systems & Equipment, as proposing equipment that would best meet the needs of the City. The equipment proposed by the low bidder, Southern Sewer Equipment, provided less than desirable functionality and capacities on several of the specifications as listed here.
Each of the listed items will lead to a decrease of productive sweeping time as described. The cost associated with the reduced sweeping time will far exceed the $6,651.00 difference in purchase cost over the life of the equipment. There were other specification items the low bid equipment did not meet, but were not as significant as those listed here.
A value can be assigned to the productive sweeping time lost using the federal governments’ equipment rate schedule. The most current FEMA equipment rate schedule allows $85.00 per hour for pavement sweeping (up t 230hp). Using this rate, each hour the equipment is not sweeping is a loss of $85.00. This rate would consume the $6,651.00 purchase savings in 78 hours, or 1.5 hours per week over the course of a year. The 1.5 hours of lost sweeping time due to the noted items would easily be exceeded during a 5-day work week.
Purchase of the Schwarze A7000 would allow for sharing of parts between the existing 2007 Schwarze A700 and the new sweeper. Fewer replacement parts would have to be kept on hand if both sweepers are the same make and model. Familiarity of equipment would also benefit the maintenance staff.
The Purchasing Division agrees with and supports the assessment by Fleet Services. The attached letter was sent to the low bidder informing them of the evaluation results and the recommendation of award to the second low bidder. The ITB document clearly stated the City reserves the right to award the bid based on criteria other than price alone. Additionally, the ITB contains language providing the commission flexibility to award the purchase to the bid deemed in the best interest of and most advantageous to the City.
1. Approve the ITB Award and purchase request to Container Systems & Equipment Co., Inc; or
2. Such alternative action as the Commission may deem appropriate
The $169,844.00 purchase cost of the sweeper is available in the Fleet Equipment Replacement account listed here. The difference between the budgeted amount ($164,920) and actual purchase cost will be absorbed by savings from delayed equipment replacements during the year.
The Storm Water Division will pay Fleet Services a monthly lease amount of $1,611.00 and a monthly amount for routine maintenance of $850.00. The total annual cost, not including fuel, paid by the Storm Water Division for this sweeper would be $29,532.00. The monthly lease amount goes toward accumulating funds for replacement of the equipment. This monthly rate provides for full replacement after 8.78 years based on the current purchase cost.
Department: _Fleet Services____________
Prepared by: _Mike Thornton__________
Attachments: Yes__X__ No ______
Advertised: X___Not Required ______
Dates: August 19, 2010______________
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-5110-519.64-13__
Project No. __FLEET___________
WF No. _____WF0635052/006____