TO: Mayor and Commissioners
FROM: Missie Barletto, Public Works Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: February 18, 2025
Title
APPROVAL OF RESOLUTION NO. 22-25 TO AWARD A SOLE SOURCE AGREEMENT WITH RECHTIEN INTERNATIONAL TRUCKS, INC. FOR INTERNATIONAL OEM PARTS AND RELATED SERVICES IN THE AMOUNT OF $80,000
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Recommended Action:
Recommendation
Motion to approve Resolution No. 22-25 to award a Sole Source Agreement with Rechtien International Trucks, Inc. for International OEM Parts and Related Services in the amount of $80,000.
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Background:
The Fleet Maintenance Division of the Public Works Department (Fleet) has a responsibility to maintain the City’s fleet of International Truck and Engine Corporation/Navistar Inc. (“International”) branded vehicles. International qualifies and designates specific dealers for different regions throughout the United States. The designated International dealer for the State of Florida is Rechtien International Trucks, Inc. (Rechtien). On October 23, 2024, the City approved Rechtien as a sole source for International original equipment manufacturer (OEM) parts and related services.
The agreement term will commence upon approval by City Commission and expire on October 23, 2026 (expiration of the sole source designation).
Staff estimates that approximately $40,000 will be spent annually on preventive maintenance, repair parts, and related services. Parts delivery and services will be performed by Rechtien per quotes on an as-needed basis. The cumulative agreement value is provided below:
|
Estimated Agreement Value |
|
Initial Term |
Upon execution - October 23, 2026 |
$80,000 |
|
TOTAL |
|
$80,000 |
The City, at its sole discretion, reserves the right to terminate this agreement with or without cause immediately upon providing written notice to the contractor. Upon receipt of such notice, the contractor shall not incur any additional costs under the agreement. The City shall be liable only for reasonable costs incurred by the contractor prior to the date of the notice of termination. The City shall be the sole judge of “reasonable costs.”
This motion is in accordance with City of Delray Beach Code of Ordinances Section 36.02, Commission Approval Required; and Purchasing Policies and Procedures, Limited or No Competition Acquisitions.
Attachments:
1. Resolution No. 22-25
2. Exhibit A to Resolution No. 22-25
3. Agreement SS 2025-003
4. Legal Review Checklist
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
Funding is available from 501-43-000-549.52-51 (Operating Supplies C.G. - Outside Service) and 501-43-000-549.52-52 (Operating Supplies External Parts)