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� . <br /> r <br /> � PURCHASING &INTERNAL SERVICES MEMORANDUM <br /> #95 - 15 <br /> March 29, 1995 <br /> TO: James C. Bacon, Jr., City Manager <br /> FROM: Deborah M. Perry, Purchasing Supervisor�'"\ <br /> SUBJECT: MOTOR GRADER BIDS <br /> Attached you will find a bid summary for an articulated motor grader to be used by the Street <br /> Division of the Public Works Department. This machine will replace a 1973 Caterpillar motor <br /> grader. The 1973 motor grader has far exceeded the useful life of 15 years established for this <br /> l:ind of equipment. According to the MSC Manager, parts are more difficult to obtain, and <br /> repairs are starting to mount on the old motor grader. <br /> Bid speciiications requesting two bids were prepared due to the previous success tl�e City has <br /> ea�perienced on total cost bidding for equipment. Altemate 1 asked to buy the motor grader <br /> outright, while the second alternate asked for a total cost bid on the motor grader, guaranteeing a <br /> buy back at the end of 5 years or 5000 hours. Altemate 2 also asked for a cap on the maximum <br /> amount of repairs for 5 years. Both altemates included the trade-in of the old motor grader. <br /> We are very pleased with Capitol Machinery's generous bid for this equipment. The motor grader <br /> will be manufactured at the Decatur Caterpillar plant. <br /> It is the staff recommendation to accept the total cost altemate low bid of Capitol Maclunery to <br /> furnish one (1) Caterpillar 120H articulated motor grader for $79, 982. (Includes trade-in of the <br /> 1973 Caterpillar motor grader). The maximum cost of repairs will not exceed $1500 for 5 years <br /> or 5000 hour period. Capitol Machinery also guarantee to buy back the motor grader at the end <br /> of 5 years or 5000 hours for $78,000 total, thus the total cost would be $3482. <br /> cc: Beth Couter <br />