DATE: December 18, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Joe York, Streets Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge report of sole-source purchase from CMI Equipment Sales, Inc. of Nashville, TN in the total amount of $29,500 for mower equipment replacement parts for the Fleet Division of the Streets Department (CoF requisition no. 1018)
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Purpose
The purpose of this procurement was to purchase mower equipment replacement parts. This purchase was used by the Fleet Division of the Streets Department to return to service a John Deere 6430 tractor that is used by the Streets Department for mowing.
Background
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board): Repairs to, maintenance of, licenses for and/or maintenance agreements for products already in use by the City, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City of Franklin, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
Staff is of the opinion that the purchase was a sole-source purchase. Evidence to support this opinion includes that Alamo is the sole source for the parts purchased, and that CMI Equipment Sales, Inc. is the exclusive authorized Alamo dealer in middle Tennessee. CMI Equipment Sales, Inc. has stated in writing that the pricing quoted the City for this purchase is the lowest price for governmental parts.
Financial Impact
The Streets Department Fleet Maintenance division budget allocates funding out of the General Fund for the purchase of parts to repair City equipment. Such purchases are eventually expensed to the City cost center responsible for maintaining the equipment, in this case Streets Maintenance Division.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of sole-source purchase from CMI Equipment Sales, Inc. of Nashville, TN in the total amount of $29,500 for mower equipment replacement parts for the Fleet Division of the Streets Department. Purchasing Manager Brian Wilcox is of the opinion that the proposed sole-source purchase appears to be justified.