Title
Bid No. 2024-075 - Annual Supply of OEM Kenworth Parts and Labor.
(Authorize the City Manager to finalize and execute a contract and any required documents with Texas Kenworth Company, LLC, dba MHC Kenworth, through BuyBoard Contract No. 723-23, in an amount not to exceed $300,000.00. The term of the contract is for a one-year period, with two additional one-year renewals. The City Manager is authorized to exercise the renewal options, subject to the annual appropriation of sufficient funds.)
Body
Name of Department
Finance - Warehouse /Equipment Services
Project/Budgeted Amount
$300,000.00
Sum of Bid/Bid Amount
$300,000.00
The City is utilizing BuyBoard Contract No. 723-23 to purchase OEM Kenworth parts. The Warehouse Division utilizes this award for purchases of direct issue fleet and inventory parts for internal repairs in the annual amount of $150,000.00. In addition, the Equipment Services Division sends units to MHC Kenworth for repairs that cannot be completed internally and anticipates approximately 500 hours of mechanical repairs ($165 per hour shop rate) in the annual amount of $82,500.00 plus $67,500.00 for parts for the units while in the shop; totaling an amount of $150,000.00.
Internal Repairs/ External Repairs/ Total
Warehouse Equipment Services Amount
Parts $150,000.00 $67,500.00 $217,500.00
Labor $82,500.00 $82,500.00
Total $150,000.00 $150,000.00 $300,000.00
Recommended/Desired Action
Staff recommends the City Manager be authorized to finalize and execute a contract and any required documents with Texas Kenworth Company, LLC, dba MHC Kenworth.
Drafter
Ryan Williams/Jonathan Harrison
Head of Department
Cindy Smith/Tony Carson