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TO: The Honorable Members of the DATE: October 29, 1986 FILE: <br />Board of County Commissioners <br />THROUGH: <br />Charles Balczun, <br />County Administrator SUBJECT: <br />Indian River County Bid 0317 <br />Sonny Dean, Road & Bridge Dept. <br />General Servic hector Track Dozer <br />Carolyn Goodrich, C .d'Vb\k <br />Purchasing Director „ <br />FROM: Jams W. Davis, P.E., REFERENCES: <br />Public Works Director <br />DESCRIPTION AND CONDITIONS dw , <br />During the FY86/87 Budget hearings, the Board appropriated $195,600 for the <br />purchase of a D7 Track Dozer to replace an existing 1968 Model Cat 977 - <br />Dozer. During the bid process, the staff advertized for direct purchase of <br />a dozer and total cost bidding. Both bids were received Oct. 23, 1986. <br />The attached bid tabulation summarizes the bids. <br />ALTERNATIVES AND ANALYSIS <br />Between Jan. 1981, and March 1986 repair costs on the 1968 track dozer <br />totaled .$118,271.88 or $23,654.38 per year. The majority of the Road and <br />Bridge Dept. Heavy Equipment maintenance costs in recent years has been <br />attributed to track machines, gradall, and draglines. It is staff's <br />opinion that for the high maintenance equipment items, Total Cost Bidding . <br />is appropriate and will result in a saving over a 5 -year period as <br />follows: <br />Typical yearly repair cost for track equipment <br />(from County records of past 5 years) $23,654.38 <br />Less normal yearly maintenance <br />(oil changes, lubrication, etc.) 3,000.00 <br />Major Repairs $20,654.38/year <br />- OR <br />Under the Total Cost Bid received <br />- $19,918 over a 5 -year period or $3,9836 guaranteed cost of major repairs is <br />Y P � per year. It is possible that a <br />repair cost savings of $83,353 over the 5 -year period could be realized. <br />In analyzing the Total Cost Bid, staff discovered mathematical errors. The <br />correct figures as initialed by Kelly Tractor Co. are attached. In <br />comparing the low bid under direct purchase and the Total Cost Bid, the <br />following is presented. <br />Law Bid <br />Liebherr PR 741C (Austrian) <br />H.F. Mason (Vendor) <br />Purchase Cost $ 153,995 <br />Less Trade 18,000 <br />$ 135,995 <br />Total Cost Bid <br />Caterpillar D -7G <br />Kelly Tractor <br />Total Cost Expenditure $170,129 <br />including repurchase bond <br />Less Trade-in 23,900 <br />Guaranteed Value at <br />end of 5 -years <br />$146,229 <br />$ 49,092 <br />47 BOOK F'9GF <br />NOV 41986 _ <br />