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Award of Sole Source Contract to Dobbs Equipment, LLC, for Lease of John Deere Equipment for Utilities Department (Amount: $1,014,737.64)
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BRIEF OVERVIEW
The Hernando County Fleet Department is requesting authorization to lease nine (9) construction equipment vehicles. John Deere is the sole provider of this equipment and Dobbs Equipment, LLC is the authorized John Deere Construction Equipment Distributor for Central and South Florida.
Equipment is included in the Fiscal Year Vehicle list that was approved by Board, No. 12882 on October 10, 2023.
The Procurement Department posted “Notice of Intended Single Source Lease” of equipment on November 29, 2023. As of December 20, 2023, the Procurement Department received no challenges from any sources.
The Hernando County Fleet Department is requesting authorization to lease nine (9) vehicles/equipment per the lease agreements per month as follows:
• One (1) 1050K Dozer at $22,802.72
• One (1) 260 P-Tier Articulated Dump Truck at $10,756.61
• One (1) 350 P-Pier Excavator at $8,879.55
• One (1) 524 P-Tier Loader at $5,116.24
• One (1) 544 P-Tier Loader at $5,176.27
• One (1) 544 P-Tier Loader at $5478.90
• One (1) 544 P-Tier Loader at $5,465.80
• One (1) 544 P-Tier Loader at $5,978.54
• One (1) 724 P-Tier Loader at $9,007.20
Total Lease per month: $ 78,661.83
Total Lease per year: $ 943,941.96
Total Lease for 3 years: $2,831,825.88
Total Real Property Tax per month: $ 5,899.64
Total Real Property Tax per year: $ 70,795.68
Total Real Property Tax for 3 years: $ 212,387.04
Annual Amount: $ 943,941.96
Annual Real Property Taxes: $ 70,795.68
Annual total: $ 1,014,737.64
Ultimate Uptime Level-3 Repair and Maintenance for additional time above set hours per equipment will be charged on an as needed basis per the Repair & Maintenance Contract. Charges that exceed ABR will be brought to the board for approval.
FINANCIAL IMPACT
Funding in the amount of $1,014,737.64 for Fiscal Year 2024 is budgeted in the following accounts:
• Account No. 07602-5304406 - Class I Operations ($837,770.32)
• Account No. 07603-5304406 Recycling, Operations ($21,468.40)
• Account No. 07604-5304406 Solid Waste and Recycling ($141,186.64)
• Account No. 07607-5304406 Waste Tire Operations ($14,312.28).
LEGAL NOTE
The Board has the authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairperson’s signature on the attached sole source Lease Agreement and Repair & Maintenance Contract for Dobbs Equipment, LLC in the annual amount of $1,014,737.64 for leasing of construction equipment.
It is further recommended the Board approve the Chief Procurement Officer to approve change orders as they become necessary and required with proposed documentation and available within the department budget.