TO: Mayor and Commissioners
FROM: Missie Barletto, Assistant Public Works Director
THROUGH: Neal de Jesus, Interim City Manager
DATE: June 18, 2019
Title
APPROVAL OF RESOLUTION NO. 100-19 TO AWARD A SOLE SOURCE AGREEMENT WITH RECHTIEN INTERNATIONAL TRUCKS, INC. FOR INTERNATIONAL OEM PARTS AND RELATED SERVICES - $75,000
Body
Recommended Action:
Recommendation
Motion to approve Resolution No. 100-19 to award a sole source agreement with Rechtien International Trucks, Inc. for International OEM parts and related services in an estimated cost of $75,000 and authorize the City Manager to approve renewal options, in the same amounts, contingent upon appropriation of funds.
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Background:
The City of Delray Beach (City) Fleet Maintenance Division of the Public Works Department 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 March 20, 2019, 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 March 19, 2020. The agreement may be renewed for up to four additional years, subject to Rechtien remaining a sole source factory-authorized dealer for International OEM parts and related services.
Staff forecasts that approximately $75,000 will be spent annually on preventive maintenance, repair parts, and related services. Parts delivery and services will be performed by Rechtien per negotiated quotes on an as-needed basis. Should the City exercise all renewal options provided in the agreement, the cumulative agreement value is provided below.
|
Estimated Contract Value |
|
Initial Term |
May 21, 2019 - March 19, 2020 |
$75,000 |
|
Renewal Term 1: |
March 20, 2020 - March 19, 2021 |
$75,000 |
|
Renewal Term 2: |
March 20, 2021 - March 19, 2022 |
$75,000 |
|
Renewal Term 3: |
March 20, 2022 - March 19, 2023 |
$75,000 |
|
Renewal Term 4: |
March 20, 2023 - March 19, 2024 |
$75,000 |
|
Total $375,000 |
|
|
Staff is anticipating $75,000 annually based upon past fiscal year expenditures with Rechtien, which are shown below.
Fiscal year 2016 - $43,808.23
Fiscal year 2017 - $54,668.01
Fiscal year 2018 - $65,984.07
This motion is in accordance with City Code of Ordinances Section 36.02, Commission Approval Required and Purchasing Policies; Limited or No Competition Acquisitions.
Attachments:
1. Agreement
2. Resolution
3. Legal Review Checklist
4. Approved Sole Source Memo
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.