Title
Parks Department Replacement Vehicles - Bid Award
History
The 2014 Fiscal Year Budget includes a Board approved line item in the amount of $152,000.00 for two (2) replacement work trucks for the Parks Department.
Periodically, the Village purchases vehicles through the Suburban Purchasing Cooperative (SPC). The goal of the SPC is to combine the resources and purchasing power of governments and not-for-profit entities to jointly negotiate contract terms on high quality products at the lowest possible price. Currie Motors of Frankfort, Illinois is a contracted SPC vendor for the purchase of these types of vehicles. Currie Motors submitted proposals for the replacement vehicles. First, a vehicle cost of $67,406.00 for one (1) 2015 Ford F550 dump truck equipped with snow plow and chipper cap. Additionally, Currie Motors provided a vehicle cost of $51,355.00 for one (1) 2015 4x4 F350 with snow plow and service body.
Staff evaluated and compared a purchase versus leasing option [see attached Total Cost of Ownership (TCO) Analysis]. The TCO is based on a 5-year lease term. Under typical conditions, these vehicles would remain in the fleet for up to ten (10) years. A lease term of that length is generally not available. Because the lease term is only five years, and the Village would generally keep these vehicles in service for approximately 10 years, the lease option would not be cost efficient; therefore, staff recommends the purchase of these vehicles.
Staff seeks authorization to purchase these two vehicles from Currie Motors of Frankfort, Illinois at a total combined cost not to exceed $118,761.00.
On September 2, 2014, this item was reviewed and approved by the Public Works Committee and referred to the Board for approval.
Financial Impact
There are sufficient funds available in Account #010-5006-470200 for the purchase of the two (2) replacement Parks Department trucks.
Recommended Action/Motion
I move to approve to award the bid for one (1) ...
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