Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to modify the contract with Jack Doheny Companies and Northeast Sweepers & Rentals, Inc. for the purchase of 3-Wheel and 4-Wheel Street Sweepers to allow for price escalations subject to the receipt of proper documentation. Generally, Universal Term Contracts (UTC) include escalator clauses to allow suppliers, with proper documentation, request price escalation. These particular contracts did not include such clause in the original specifications.
Vehicle manufacturers have experienced significant price increases for raw steel surcharges to manufacturer the chassis due to supply chain slow down due to the COVID-19 pandemic. Jack Doheny Companies and Northeast Sweepers & Rentals, Inc. have requested price increases which have been reviewed and approved by the Purchasing Office. However, since the original contracts did not include the language for escalations, the contracts must be modified to include the right for price escalations. The term of the contract is through December 31, 2025.
No additional funds are necessary to modify the option contract(s) as requested. There is no change in the type of products being procured and the original contracts was formally bid. The original terms and conditions remain in effect.
EMERGENCY DESIGNATION: The Finance and Management Department respectfully requests this legislation be considered an emergency in order to maintain an uninterrupted supply of 3-Wheel and 4-Wheel Street Sweepers.
FISCAL IMPACT: No additional funding is required to modify the option contracts. The various City departments must set aside their own funding for their estimated expenditures.
Title
To authorize the Finance and Management Director to modify the contract for 3-Wheel and 4-Wheel Street Sweepers with Jack Doheny Companies and Northeast Sweepers & Rentals, Inc. to insert price escalator language into the contracts to allow for price escalat...
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