HomeMy WebLinkAbout(0050) M&C 20-0078City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/18/20 M&C FILE NUMBER: M&C 20-0078
LOG NAME: 13PSS 5204 HOLT CAT REPAIRS AND SVS
SUBJECT
Authorize Sole Source Purchase Agreement with Holt Texas, Ltd. d/b/a Holt Cat for Original Equipment Manufacturer Caterpillar Heavy Equipment
Parts and Repairs in an Amount Up to $500,000.00 Per Year for the Property Management Department (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize a sole source purchase agreement with Holt Texas, Ltd. d/b/a Holt Cat for original equipment
manufacturer Caterpillar heavy equipment parts and repairs in an amount up to $500,000.00 per year with four one-year renewal options for the
Property Management Department.
DISCUSSION:
The Property Management Department (PMD) approached the Purchasing Division for assistance in obtaining replacement parts and services to
maintain City owned Caterpillar equipment. Holt Texas, Ltd. d/b/a Holt Cat is the authorized service facility for Caterpillar maintenance, service
repairs and original equipment manufacturer (OEM) replacement parts. The City of Fort Worth has approximately 137 active units which includes
off -road equipment such as tractors, backhoes, skid steer loaders, tracked excavators as well as tub grinder/mulcher, and fire apparatus that
range in age of from 1975 to 2018. Caterpillar offers OEM parts needed to have equipment to work to its full potential and road calls for hours of
operation and afterhours.
Staff reviewed the prices and determined them to be fair and reasonable. No guarantee was made that a specific amount of goods and services
would be purchased. The City anticipates spending approximately $271,000.00 during the first Agreement period. However, the annual amount of
$500,000.00 provides an adequate amount of funds for repairs and service needed for city equipment. Warranty is only a percentage of services
provided software, diagnose equipment and Caterpillar knowledge not available to the public.
M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the
M/WBE Office, in accordance with the M/WBE or BIDE Ordinance, because the M/WBE Waiver is based on the sole source information provided
to the M/WBE Office by the Purchasing Division Buyer.
This procurement is exempted from the competitive bidding requirements as provided for under Section 252.022(7) of the Texas Local
Government Code because, Holt Texas Ltd. d/b/a Holt Cat is the documented sole source original equipment manufacturer Caterpillar heavy
equipment parts, repairs and maintenance services for Holt Cat Equipment.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to
$50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.
Upon City Council approval, the Agreement shall begin upon execution of the Agreement and expire one year from that date.
RENEWAL OPTIONS - This Agreement may be renewed for four additional one-year renewal periods. This action does not require specific City
Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and award of the contract, funds are available in the
current operating budget, as appropriated, in the General Fund. Prior to any expenditure being incurred, the Property Management Department
has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by. Kevin Gunn 2015
Originating Business Unit Head:
Additional Information Contact:
Steve Cooke
8134
Reginald Zeno
8517
Cynthia Garcia
8525
LaKita Slack -Johnson
8314