FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
title
MOTION to approve a bid waiver to Girard Ford of Norwich, CT, in the amount of $72,168 for purchase of a 2023 Ford Econoline Cutaway with utility body for the Public Works Department.
end
Background:
In accordance with the Public Works small truck capital replacement plan approved in the FY22 budget, a replacement truck outfitted for building and facility maintenance was ordered under the State Bid. The truck was ordered in December of 2021 and was not delivered in FY22. A purchase order was subsequently opened for FY23 as we continued to wait (attached).
We have yet to receive the truck and have received word that the 2022 model year line is being shut down. Additionally, this means that in order to receive this truck it will have to been reordered as a 2023 model year vehicle. According to a number of reports involving similar circumstances, this will likely involve a cost increase of several thousand dollars, which is typically reflected every model year in supplements to the State Bid.
We will not receive definitive word on the amount of increase for possibly several weeks. So, we will not know how much additional funding will be needed to purchase this vehicle, and thus whether additional appropriation will be required. Additionally, we will likely face an extended delivery delay into 2023 as the order will be initiated from scratch.
We have found a very similar asset that is arriving soon at Girard Ford. It is already a 2023 model year truck; it has a comparable body to what the original would have been outfitted with. Though it doesn’t have some relatively minor accessories that were ordered with the original package, it has some advantages that we feel more than offset this. For example, the model is an E450 versus and F350 (offering greater load capacity), and the body is of larger capacity and better construction.
The cost of the originally-ordered truck was $72,036.90. The closely-comparable truck arriving soon at Girard Ford of Norwich has been offered to us at $72,168. Accounting for this purchase, there will be a slight deficit in the small truck capital account (21040101-57313). We expect this shortfall to be easily erased by liquidation of the present Buildings & Grounds service van, along with another small truck that is presently being retired from the fleet and being prepared for sale through GovDeals.
Department Comment/Recommendation:
I recommend proceeding with purchase of this truck through a bid waiver to Girard Ford.
Finance Director Comment/Recommendation:
Once the current PO noted above is cancelled, account 21040101-57313 Small Trucks will have an available balance of $71,078.
Mayor Comment/Recommendation:
(type text here)
Meeting Action Details:
Town Council Meeting 10/12/2022
File #: 22513 Version: 1
Type: Financial Business Request (FBR)
Title: MOTION to approve a bid waiver to Girard Ford of Norwich, CT, in the amount of $72,168 for purchase of a 2023 Ford Econoline Cutaway with utility body for the Public Works Department.
Moved: Saums Seconded: Ingalls
Action: Approved
Minute Note:
Moved by Councilor Saums, seconded by Councilor Ingalls
Discussion: Councilor Saums stated in accordance with the Public Works Small Truck Capital Replacement Plan the red Public Works Van was at the end of its useful life. He stated the van was being replaced with a Ford Econoline Cutaway Truck with a utility body model, which would allow the employees to have easier access to the materials and tools that were stored in the back of the truck. He stated in purchasing the vehicle the town used the State Bid process. However, he stated after nearly a year of delays in the delivery of the truck due to shortage of vehicles, the Public Works Department located a very similar Truck that would be arriving soon at Girard Ford in Norwich. He stated it was a 2023 model year truck and it had a comparable body to what the original would have been outfitted with and cost $138.00 more than the truck they ordered a year ago. He stated although the truck did not have some relatively minor accessories that were ordered with the original package, that it had some advantages that the Public Works Department believed would more than offset the accessories that were previously ordered. He noted as an example, the 2023 model truck was an E450 versus and the F350, which would offer greater load capacity, and the body was a larger capacity and better construction.
VOTE: 7 - 0 Approved and so declared
Action: Approved
Finance Committee Meeting 10/5/2022
File #: 22513 Version: 1
Type: Financial Business Request (FBR)
Title: MOTION to approve a bid waiver to Girard Ford of Norwich, CT, in the amount of $72,168 for purchase of a 2023 Ford Econoline Cutaway with utility body for the Public Works Department.
Mover: Ingalls Seconder: Saums
Action: Recommend to Approve
Minute Note:
Moved by Councilor Ingalls, seconded by Councilor Saums
Discussion: Public Works Director/Town Engineer Steve Masalin provided some background stating in accordance with the Public Works Small Truck Capital Replacement Plan that was approved as part of the Fiscal Year 2021/2022 Budget, that a Ford Econoline Cutaway Truck with utility body was ordered under the State Bid for the Building and Facility Maintenance. The truck was ordered in December of 2021; however, the town has yet to receive the truck and have received word that the 2022 model year line was being shut down. He explained that this meant that to receive the Ford Econoline Cutaway Truck with utility body model that it would have to be reordered as a 2023 model year vehicle.
Mr. Masalin went on to state according to a number of reports involving similar circumstances, the Ford Econoline Cutaway Truck with utility body model would most likely involve a cost increase of several thousand dollars, which has been typically reflected on every model year in supplements to the State Bid, noting that they would not receive definitive word on the amount of the cost increase for possibly several weeks. In addition, they would likely see an extended delivery delay into 2023 as the order would need to be initiated from scratch.
Mr. Masalin stated they have found a very similar Truck that would be arriving soon at Girard Ford in Norwich. He stated it was a 2023 model year truck and it had a comparable body to what the original would have been outfitted with. He stated although the truck did not have some relatively minor accessories that were ordered with the original package, that it had some advantages that the Public Works Department believed would more than offset the accessories that were previously ordered. He noted as an example, the 2023 model truck was an E450 versus and the F350, which would offer greater load capacity, and the body was a larger capacity and better construction.
Mr. Masalin continued by noting that the cost of the originally ordered truck was $72,036.90. He stated the closely comparable truck that would be arriving soon at Girard Ford of Norwich has been offered to the town for $72,168 only $130.00 more than the 2022 model truck they initially ordered. He stated to account for this purchase, there would be a slight deficit in the Small Truck Capital Account (21040101-57313). However, he stated that they expected this shortfall to be easily erased by liquidation of the present Buildings & Grounds service van, along with another small truck that were currently be being retired from the fleet and being prepared for sale through GovDeals.
Mr. Masalin stated their search for the truck extended into Massachusetts and he explained by the time they found the Cutaway model truck with a utility body that the vehicle had already been spoken for. He stated although it was a risk that Girard Ford was willing to hold the 2023 model truck for Ledyard.
VOTE: 2 - 0 Approved and so declared