Title
Department of Transportation recommending the Board:
1) Approve an increase of $100,000 for a new not-to-exceed amount of $199,000 with Quality Chain Corporation under Agreement 7177;
2) Authorize the Purchasing Agent to issue a purchase contract change order in the amount of $100,000 following Board approval; and
3) Authorize the Purchasing Agent to increase the purchase contract on an "as needed" basis during the term of the contract as long as funding is available within the requesting department's budget.
FUNDING: Road Fund. (100%)
Body
DISCUSSION / BACKGROUND
The Department of Transportation, Maintenance and Operations Division (Maintenance) requested Procurement and Contracts advertise a bid for chains in the Fall of 2022. Subsequently, Quality Chain Corporation was the lowest responsible bidder of bid #23-055-025. Due to the bid under Purchasing Agent (PA) authority, the PA awarded the bid in the amount of $99,000. Historically, chains do not exceed $99,000 during a three-year purchase contract term. However, due to lower quality steel, staff spends more time repairing chains in recent months, as well as extensive damage to rental equipment from chain failures. Maintenance is requesting to increase the not-to-exceed amount to purchase chains of higher quality that will last longer periods of time and prevent damage to rental equipment in the future. The purchase of Swiss Flexi chains will allow staff to spend more time plowing instead of repairing chains and continue to operate the snow removal rental program.
Maintenance is requesting to increase the not-to-exceed amount by $100,000 for the remainder of the purchase contract term, with a new not-to-exceed amount of $199,000, which exceeds PA authority.
ALTERNATIVES
The Board could choose not to approve the increase to the not-to-exceed amount for Agreement #7177. Transportation would not be able to purchase higher quality chains for rental equipment
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT ...
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