DATE: June 4, 2019
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. Make a finding that it is in the best interest of the County to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances as Quinn Company is the only authorized Caterpillar, Inc. equipment maintenance and repair vendor in the County’s service area.
2. Approve and authorize the Chairman to execute an Agreement with Quinn Company for landfill equipment maintenance and repair services, effective July 1, 2019, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $5,000,000.
REPORT
Approval of the recommended actions will provide support, maintenance, and repair 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® vendor 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:
The Department’s request to suspend the competitive bidding process is consistent with Administrative Policy No. 34 as Quinn Company is the only service provider in the County authorized by Caterpillar, Inc. to perform warranty service and repairs on Cat® equipment. 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 Division concurs with the Department’s request to suspend the competitive bidding process.
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. The recommended agreement is for a five-year term, at $1,000,000 per year; $5,000,000 for the term. Sufficient appropriations and estimated revenues will be included in the FY 2019-20 budget request and subsequent budgets.
DISCUSSION:
AADS owns and operates 15 Cat® heavy equipment vehicles along with the proprietary Cat® global positioning system and other miscellaneous Cat® equipment. The landfill equipment requires ongoing 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® vendor, 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 on services due and equipment alarms.
Quinn Company would also provide repairs and maintenance on the Cat® proprietary Computer Aided Earthmoving System (CAES). CAES is a global positioning system that is currently used on the majority of the landfill equipment to create waste placement designs to maximize landfill compaction and grade, design and construct customer access roads, and to alert landfill operators as to the location of other heavy equipment, including notification of “avoid zones” to ensure safe operations.
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 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:
Sonia M. De La Rosa