This is regarding the replacement of a 2008 International 7600 16-foot bed dump truck for the Water Department. This dump truck was planned for replacement next fiscal year but broke down in September of this year. Engine disassembly by the Water Department’s mechanic revealed repair of the dump truck would entail a full rebuild or replacement of the engine. The following options were identified and analyzed (costs are attached for reference):
1. Retire/ scrap broken down dump truck and replace next fiscal year
2. Engine rebuild performed by Water Department staff – approximately $12,000 in parts
3. Engine replacement by Water Department staff – approximately $18,500 to $26,000
4. Dump truck rental – approximately $5,500/ month
5. New dump truck – approximately $142,000
The Water Department maintains three (two 16-foot bed and one 10-foot bed) dump trucks in the fleet to maintain efficiency on water main construction, repairs and site restorations. The two 16-foot bed trucks are primarily used for construction and maintenance operations, and the 10-foot bed truck is typically used for hauling dirt for yard restorations. The 10-foot bed truck is less efficient for construction and maintenance operations as the lower capacity results in many more trips between the work site and the base of operations. In addition to the increased number of trips, crews are often sitting idle at the work site while waiting for dump trucks to return. Therefore, it was decided that the 16-foot bed dump truck needed to be repaired or replaced as soon as possible.
It was determined that repairing or replacing the motor was not a desirable option. This was due to the significant costs without a warranty or guarantee that all issues would be addressed, and the fact that the truck was planned for replacement next fiscal year.
Dump truck rental was not considered to be a feasible option, considering that even a 6-month rental would result in approximately $33,000 in fees. Additionally, renting a dump truck for 6-months would only serve to delay the purchase of a new truck later, which would result in more money spent by the Department.
Replacing the dump truck was the most desirable option. The Water Department worked with the Procurement Division to issue an Invitation to Bid (ITB) obtain bids for a new truck. The ITB was published through the Public Purchase e-procurement website, which notified 161 potential bidders; 12 accessed the ITB. The specifications were based on a Peterbilt 348 dump truck.
The Procurement Division received the following two bids for the dump truck:
- Diamond International - International HV607 Dump Truck - $125,970
- Custom Truck and Equipment - Peterbilt 348 Dump Truck - $141,964
The low bid was for the International HV607 dump truck. The lead time for the International is 240 days (roughly eight months). In addition to the long lead time, the Water Department has experienced issues with a number of International trucks in the fleet. A list of mechanical issues experienced by the Water Department with International trucks are attached for reference.
Custom Truck and Equipment provided a bid for the specified truck with a lead time of 5 weeks (just over a month). Based on the short lead time and the bid matching what was specified, the Water Department recommends award to Custom Truck and Equipment for the purchase of a Peterbilt 348 dump truck for the price of $141,964.