DATE: June 18, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Agreement with Quinn Company
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34) determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances as Quinn Company is the only authorized Caterpillar, Inc. equipment maintenance and repair vendor in the County’s service area; and
2. Approve and authorize the Chairman to execute an Agreement with Quinn Company for landfill equipment maintenance and repair services, effective July 1, 2024, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $7,500,000.
REPORT
Approval of the recommended actions will provide support, maintenance, and repair services of existing Caterpillar, Inc. (Cat®) landfill equipment at the American Avenue Disposal Site (AADS). Quinn Company is the authorized local Cat® equipment maintenance and repair service provider permitted by Caterpillar, Inc. within the County. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. Quinn Company is the only authorized Cat® dealer allowed to work in the County’s service area and having other vendors provide service work on Cat® equipment may void the warranties and/or guarantees.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP No. 34 that an exception to the competitive bidding requirement is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances as Quinn Company is the only service provider in the County authorized by Caterpillar, Inc. to perform warranty service and repairs on Cat® equipment. From July 1, 2019, to the present date, the Department has saved an estimated total of $598,000 on warranty repairs completed by Quinn Company. Quinn Company, as a Caterpillar authorized dealer, is the only vendor with access to Caterpillar Electronic Technician (Cat ET). Cat ET is a proprietary diagnostic software required to communicate, diagnose and service Cat® equipment. No other vendor can utilize Cat ET except Quinn Company.
Additionally, Quinn Company’s maintenance and repair technicians are Cat® certified on a continuous basis to ensure they are qualified to perform all necessary equipment service and repairs to factory specifications. The Internal Services Department - Purchasing concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. All repairs and work-related expenditures will continue to be funded by the AADS Enterprise Fund Org 9026. Sufficient appropriations and estimated revenues will be included in the FY 2024-25 budget request and subsequent budgets.
DISCUSSION:
AADS is a County owned and operated regional landfill that operates six days a week (Monday-Saturday) for approximately 310 days per calendar year. The AADS operation relies on Cat® heavy equipment to push, compact, and cover, on average, 2,200 tons of solid waste per operating day. The landfill equipment requires ongoing preventative maintenance throughout the life of the equipment, required maintenance during the warranty period and unanticipated repairs that become more frequent as the equipment ages. Cat® equipment is equipped with a proprietary Technology & Diagnostic system to monitor the equipment’s health real time. As the authorized Cat® dealer, Quinn Company is able to utilize the technology to determine when it is time to perform repairs and schedule preventive maintenance.
As part of the recommended agreement, Quinn Company will provide the County with an equipment management/monitoring software (VisionLink) system, a web-based program that monitors the health of the equipment in real-time and includes various other features such as fuel status, usage maximization, and upcoming service. Department staff will also be able to receive real-time email notifications for upcoming preventative maintenance and equipment alarms.
The recommended agreement also includes the following Cat® discount programs for AADS:
Description % Discount Program ID #
Battery 20% NAT-ELE-3030
Ground Engaging Tools / Hardware 25% NAT-GET-2/3189
Hydraulic Hose & Coupling 25% NAT-HYD-3045
Caterpillar Filters 25% NAT-PR-4
Donaldson Filters 60% Donaldson Program
These discount programs are only available through an authorized Cat® dealer.
Quinn Company has provided landfill equipment maintenance, repair services to the County for over 40 years, and has over $22 million in parts inventory, giving them the ability to facilitate equipment repairs quickly, and maximizing landfill equipment uptime. With your Board’s approval, the agreement will provide support, maintenance, and repair of existing Cat® landfill equipment at the AADS.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request
On file with Clerk - Agreement with Quinn Company
CAO ANALYST:
Salvador Espino