SUBJECT
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Consideration to renew annual contract FY21-054 for the purchase of Original Equipment Manufacturer (OEM) parts/service for the City's John Deere equipment with RDO Equipment, Laredo, Texas, in an amount up to $200,000.00. All parts and services will be secured on an as needed basis. 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. There is a proposed price increase of 8% due to an increase in labor costs for this next extension period. This is the last extension period for this contract. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 6/20/23.
BACKGROUND
This contract establishes pricing for the purchase of original equipment manufacturer parts and service for the City’s John Deere equipment. There is a proposed price increase of 8% due to an increase in labor costs for this next extension period. This is the last extension period for this contract. The term of this contract shall be for a period of one year beginning as of the date of its execution. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Fleet Department.
Summary Pricing:
John Deere Parts/Services Current Pricing Proposed Price Increase
Discount Offered 15% 15%
Product I.D. (Mfr.) John Deere Parts John Deere Parts
Labor Rate for Service $175.00 Shop/Hour $190.00 Shop/Hour
$195.00 Field/Hour $210.00 Field/Hour
Mileage Rate $0.00 $0.00
A complete bid tabulation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be renewed.
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Fiscal Impact
Fiscal Year: 2024.
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.