SUBJECT
title
Consideration to renew annual contract FY23-038 for the purchase of Original Equipment Manufacturer (OEM) parts/service for the City’s Case/John Deere equipment with the following vendors:
1. Nueces Power Equipment, Corpus Christi, Texas, in an amount up to $600,000.00;
2. RDO Equipment, Laredo, Texas, in an amount up to $600,000.00.
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. Nueces Power Equipment submitted no price increase during the last extension period. RDO has submitted a 9% proposed price increase due to an increase in labor costs. This contract can be renewed one (1) additional one-year extension period upon mutual agreement of the parties. Funding is available in the Fleet Management Fund.
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PREVIOUS COUNCIL ACTION
Approved a one-year contract on 4/17/2024.
BACKGROUND
This contract establishes pricing for providing original equipment manufacturer parts
and service for the City’s Case/John Deere equipment. Nueces Power Equipment submitted no price increase during the last extension period. RDO has submitted a 9% proposed price increase due to an increase in labor costs. This is the second of three extension periods. The term of this contract shall be for a period of one (1) 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.
A complete bid tabulation is attached.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended 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.