R93-40 AUTHORIZING AGREEMENT - CAPITOL MACHINERY COMPANY

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PURCHASING & INTERNAL SERVICES MEMORANDUM #93 - 26 March 8, 1993 T0: James C. Bacon, Jr . , City Manager FROM: Deborah M. Perry, Purchasing Supervisor�� SUBJECT: BACKHOE BIDS Attached you will find two bid summaries for two ( 2 ) diesel I powered backhoes . These backhoes will be used by the Street I Division and the Water Distribution Division of the Public ' Works Department . The Street Division is currently using a 1985 John Deere backhoe , and the Water Distribution Division is using a 1984 John Deere backhoe . The new backhoes will replace these older models of backhoes . Bid specifications requesting three bids were prepared for both backhoes due to the previous success the City has experienced on total cost bidding for equipment . Alternate 1 for each bid asked to buy the backhoe outright , while the second alternate asked for a total cost bid on the backhoe , guaranteeing a buy back at the end of 5 years or 5000 hours . Alternate 3 asked for a total cost bid on the backhoe , guaranteeing a buy back at the end of 2 years or 2000 hours . Alternate 2 and 3 also asked for a cap on the maximum amount of repairs for 5 and 2 years respectively. All alternates included the trade-in of the old backhoe( s ) . The bidders were asked to submit bid bonds with their proposals and the successful bidder( s ) will be required to submit a performance bond for 100� of the total contract . This should protect the City in the event the company would go out of business prior to the guaranteed repurchase period elapsing. Accepting the 5 year total cost alternate for both backhoes from Capital Machinery will allow for standardization of parts inventory, and also allow mechanics to work with one manufacturer for both backhoes . This alternate will maximize the vendors committment for five years , while our cost of money is at the lowest rate for over two decades .