200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: MAY 7, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: AGREEMENT FOR CATERPILLAR EQUIPMENT PARTS
ATTACHMENT (Y/N): NO ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Award a one-year agreement to Quinn Company in an amount not to exceed $59,583.99, plus applicable tax and a 20% contingency, for the purchase of Caterpillar (CAT) equipment repair parts on an as-needed basis; 2) Authorize the Purchasing Agent, or their designee, to exercise agreement renewals for up to four additional one-year periods, subject to available budget appropriations; and
3) Authorize the Purchasing Agent, or their designee, to execute documents, as necessary, related to the agreement.
DISCUSSION:
The Purchasing Division posted Request for Bids #9768 on the City’s bid portal. Four responsive bids were received by the February 22, 2024 due date from the following vendors:
Bidder Total Bid
Quinn Company $ 59,583.99
City of Industry, CA
Rush Truck Centers $ 61,976.56
Harbor City, CA
Westrux International $ 66,532.06
Santa Fe Springs, CA
Fleetworks Inc. $ 82,591.98
Santa Fe Springs, CA
The bid was based on an estimated annual requirement of approximately 161 different Agreement for Caterpillar Equipment Parts
May 7, 2024
repair parts used by Public Works for CAT equipment, such as backhoe tractors, rollers, generators, and fire truck engines. These parts are necessary to maintain the warranty and integrity of the City’s CAT equipment vehicles.
The term of the agreement will be for a one-year base period with up to four one-year optional renewal periods. Unit pricing will be fixed for the initial one-year base period and will be negotiated each year of the renewal periods but may not exceed the change in the Consumer Price Index (CPI) for the Los Angeles, Long Beach, and Anaheim, California areas for the most recent available month period. In the event that prices increase beyond the CPI or during mid agreement, a price adjustment may be requested biannually, bidder must provide verifiable evidence from the manufacturer of the product to support a requested increase. It will be at the sole discretion of the City to accept or reject such an increase.
The 20% contingency is recommended to cover any increase in the volume of parts that may be needed during the administration of this agreement.
IMPACT ON BUDGET:
Sufficient funds are available in the Public Works Department’s Fiscal Year 2023/24 budget. Funding for subsequent years will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Jered Rakosky Rudy Emami
Purchasing Agent Public Works Director