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