DATE: January 28, 2025
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: Amendment I to Agreement with Quinn Company
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute First Amendment to Agreement No. A-23-475 with Quinn Company for Caterpillar Inc. original equipment manufacturer parts and repairs, effective upon execution with no change to the term of August 15, 2020 through August 14, 2025, and increasing the maximum compensation by $320,000 to a total of $1,240,000.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Quinn Company (Quinn) to continue providing replacement Caterpillar Inc. (Caterpillar) original equipment manufacturer (OEM) parts and repair services to the County. The increased funding in the recommended amendment will address the increased need for replacement parts and repairs due to the new Caterpillar equipment that has been added to the County’s fleet. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the County will not have an efficient method to acquire replacement parts or repair services for Caterpillar equipment.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended Amendment will increase the total compensation payable by $320,000, from $920,000 to $1,240,000 total for the five-year term. Costs associated with the recommended Amendment are recovered through chargebacks to user departments. Sufficient appropriations and estimated revenues are included in the Internal Services Department - Fleet Services Division (ISD-Fleet) Org 8910 FY 2024-2025 Adopted Budget and will be included in future budget requests.
DISCUSSION:
On September 14, 2020, the Internal Services Department - Purchasing Division (ISD-Purchasing) approved Procurement Agreement P-20-287 (Procurement Agreement) with Quinn for parts and repair services for Caterpillar equipment for a potential term of five-years and a total maximum compensation payable of $625,000. The Procurement Agreement was effective August 15, 2020, and included a three-year initial term, with two optional one-year extensions. The Procurement Agreement was established through a Suspension of Competition approved by ISD-Purchasing, as Quinn is the only local authorized dealer of Caterpillar parts and sanctioned to provide repair services in the County’s service area.
On September 5, 2023, the Board approved the Department’s request to convert the Procurement Agreement to a Board Agreement and increase the maximum compensation payable from $625,000 to $920,000, with no change to the term. The increased funding in the approved Agreement addresses the higher than anticipated need for major repairs of the
Caterpillar equipment and covers both materials and labor.
Approval of the recommended Amendment increases the maximum compensation by $320,000, from $920,000 to $1,240,000, in order to account for additional pieces of Caterpillar equipment recently purchased by the County, expanding the need for replacement parts and repairs.
REFERENCE MATERIAL:
BAI #28, September 5, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment I to Agreement No. 23-475 with Quinn Company
CAO ANALYST:
Amy Ryals