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J 169 ROOK l F4 L i7O AWARD OF ADDITIONAL ITEMS ON BID #89-40 - PUBLIC WORKS/R&B DIV. - TWO MOTOR GRADERS The Board reviewed memo from Public Works Director Davis: TO: James E. Chandler, County Administrator FROM: James W. Davis, P.E. Public Works Director SUBJECT: Award of Bid - Public Works/Road and Bridge Division IRC Bid 89-40 - Two (2) Motor Graders DATE: January 30, 1989 THIS ITEM IS PRESENTED AS AN EMERGENCY ITEM DUE TO A MANUFACTURER'S PRICE INCREASE EFFECTIVE THE FIRST WEEK OF FEBRUARY 1989 AND A NEW FIVE YEAR EXTENDED WARRANTY AVAILABLE IN JANUARY, 1989. STAFF REQUEST THIS ITEM BE CONSIDERED JANUARY 31, 1989 DUE TO SUBSTANTIAL COST SAVINGS POSSIBLE. DESCRIPTION AND CONDITIONS After formal advertisements, three bidders responded by bidding on two motor graders. The Road and Bridge Division has $85,000 budgeted for one motor grader and petition paving has $122,000 budgeted for one motor grader. Both will replace two existing graders (1963 CAT and a 1971 CAT). ALTERNATIVES AND ANALYSIS 1) Bid by H.F. Mason Equipment Corp. for two Dresser A-450 E did not meet specifications as follows a) 12 volt electrical system is proposed but 24 volt system specified b) transmission has only three reverse, not six c) rear axle will not unlock d) brakes were specified to be 4 -wheel oil disc. Brakes bid were 4 -wheel hydraulic. Dresser was previously International Harvester. 2) Bid by Neff Machinery, Inc. for two John Deere 670 B Motor Graders did not meet specification as stated in the attached list of exceptions by Neff Machinery. 3) Bid by Kelly Tractor Co. for two Caterpillar 120 G Graders met all specifications. Kelly Tractor bid both Direct Purchase and Total Cost Bid. The attached spreadsheet compares the bids: The initial cost to purchase two (2) Dresser Graders is $98,644, however, the salvage value of the equipment is much less than Caterpillars and John Deere equipment. The initial cost to purchase two (2) John Deere 670 B Graders is $123,300.(After trade-in) The initial cost to purchase two (2) Caterpillar 120 G Motor Graders is $175,746.(after trade-in). Due to lesser historic maintenance costs and higher salvage value the 5 -year life cycle cost of the Caterpillar graders was esti- mated at $54,873/grader. However, Neff Machinery Co. has indicated that they would provide a 5-year/5000 hour extended warranty to the County at no additional costs. This warranty could reduce the 5 -year repair cost substantially. If repair costs are reduced by $2,815/year, the John Deere Grader would be more cost effective. 44