SUBJECT
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Consideration to award contract FY23-022 to the following vendors:
1). Humdinger Equipment, Lubbock, Texas in an annual amount up to $95,000.00 (Primary Vendor);
2). RDO Equipment, Laredo, Texas in an annual amount up to $65,000.00 (Secondary Vendor);
for the purchase of Original Equipment Manufacturer (OEM) parts/services for the City's TANA heavy equipment in use at the City's landfill. The term of this contract shall be for a period of one year beginning as of the date of its execution and is contingent upon the availability of appropriated funds. This contract may be extended for one additional one-year period upon mutual agreement of the parties. RDO Equipment is proposing a 8% increase during this extension period due to an increase in labor costs. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 1/16/2024.
BACKGROUND
This contract establishes a percentage discount on original equipment manufacturer parts and a labor rate for the City’s TANA heavy equipment in use at the City's landfill. The term of this contract shall be for a period of one (1) year beginning as of the date of its execution. The contract may be extended for one, additional one (1) year period. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
A pricing table is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
Staff is recommending that these contracts be renewed.
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Fiscal Impact
Fiscal Year: 2025.
Budgeted Y/N?: Yes.
Source of Funds: Fleet Management Fund.
Account #: 593-2810-533-2072.
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
The purpose of this contract is to establish prices for the commodities or services needed, should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.