TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Utilization of Contract 092222-CAT Between Sourcewell and Caterpillar Inc. for Purchase of Equipment, Repair Parts, and Maintenance, of Citywide Generators on an As-Needed Basis in an Amount Not to Exceed $300,000 Annually Through the Term Ending November 22, 2027, and Authorize the City Manager to Approve any Modifications, Renewals or Terminations in Concurrence With Sourcewell.
Recommended Action
Option 1: Approve utilization of Contract 092222-CAT between Sourcewell and Caterpillar Inc. for purchase of equipment, repair parts, and maintenance of citywide generators on an as-needed basis in an amount not to exceed $300,000 annually through the term ending November 22, 2027, and authorize the City Manager to approve modifications, renewals or terminations in concurrence with Sourcewell.
City Commission Options
Option 1: Approve utilization of Contract 092222-CAT between Sourcewell and Caterpillar Inc. for purchase of equipment, repair parts, and maintenance of Citywide generators on an as-needed basis in an amount not to exceed $300,000 annually through the term ending November 22, 2027, and authorize the City Manager to approve modifications, renewals or terminations in concurrence with Sourcewell.
• Pros: Allows the City to piggyback on an existing competitively procured Contract, which can save time and enables faster procurement process and acquiring equipment and making necessary repairs without going through a full bidding process.
• Cons: The Contract terms, pricing and scope were originally negotiated for Sourcewell needs and not the City’s, which could potentially limit flexibility or result in higher costs or service terms that aren’t the best fit for the City compared to issuing its own competitive solicitation.
Option 2: Deny the use of Contract 092222-CAT between Sourcewell and Caterpillar Inc. for purchase of equipment and maintenance and repair parts of Citywide generators.
• Pros: Allows the City to develop and issue its own competitive solicitation tailored specifically to its operational needs, service expectations, and budget priorities, potentially resulting in more favorable pricing and Contract terms.
• Cons: Requires a considerable amount of additional time and administrative effort to complete the procurement process, which may delay ordering and repairs to essential equipment and could impact response times for urgent issues.
Background Information
The Department of Public Works seeks to utilize an existing contract between Sourcewell and Caterpillar Inc. This arrangement, commonly referred to as a Piggyback or Cooperative Contract, allows the City to procure services under the same terms and conditions competitively established by another governmental entity.
The Contract was originally awarded by Sourcewell following a competitive procurement process on December 6, 2022, and is currently valid through November 22, 2027.
Public Works staff have reviewed the Contract and determined that its terms, pricing, and service provisions are in the best interest of the City.
Contract 092222-CAT between Sourcewell and Caterpillar Inc. has been reviewed by the City Attorney’s Office and is legally correct as to form.
Strategic Plan
Good Governance
Financial Impact
Expenditures under this contract shall be limited to funds that have been or will be duly appropriated through the City’s budget process and are specifically allocated for the scope of services outlined in the agreement.
Any purchase made on or after October 1, 2026, against this Contract is contingent on future appropriated funds.
Procurement
The utilization of this Cooperative Contract is consistent with Chapter 2, Administration, Article VIII, Procurement, Section 2-403 (a)(4)(a) of the Code of the City of North Port, Florida, which permits the use of competitively awarded Contracts from other governmental entities.
The Public Works Department will utilize the established internal procurement process for all purchases under this Contract to ensure continued administrative oversight and compliance with City procurement policies and procedures.
Attachments:
1. Contract
2. Contract Extension
3. Original Solicitation
Prepared by: Kenneth Rappuhn, Fleet Manager
Department Director: Chuck Speake, Public Works Director