City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
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File ID: 2023-00224 3/28/2023 Consent Item 17.
Cooperative Purchase Agreement: Replacement Loaders and Excavator File ID: File ID: 2023-00224
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement with John Deere Construction Retail Sales (Contract No. 032119-JDC) for the purchase of two replacement loaders and one replacement excavator not to exceed $408,575; and 2) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected] <mailto:[email protected]>; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Contract Supplement No. 1
Additional Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase one replacement John Deere Loader and one replacement John Deere Excavator for the Department of Utilities, Water Division and one replacement John Deere Loader for the Department of Utilities, Sewer Division. The loaders will be used to pick up debris during maintenance of the water distribution and sewer collection systems.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.
Economic Impacts: None.
Environmental Considerations:
File ID: 2023-00224 3/28/2023 Consent Item 17.
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the CEQA guidelines.
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: After reviewing the available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with John Deere Construction Retail Sales represents the most advantageous purchasing strategy. The contract was competitively bid nationally, and Sourcewell receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers operating costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Fleet Management recommends this supplemental agreement to be used to purchase three units in addition to the previous two purchases.
Financial Considerations: The recommended purchase, in a total amount not to exceed $408,575, will be made from the Department of Public Works Fiscal Year (FY) 2022/23 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Utilities, Water Fund (I06145000, Fund 6005) and the Department of Utilities Sewer Fund (I06146000, Fund 6006). Sufficient funding exists in the Department of Public Works FY2022/23 operating budget and the Department of Utilities Fleet Projects (I06145000 and I06146000) to support the recommended purchases.
Local Business Enterprise (LBE): John Deere Construction Retail Services is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
File ID: 2023-00224 3/28/2023 Consent Item 17.