In September 2015, after a competitive bid process, the Village Board awarded a three year contract to Patten Rental of Elmhurst, Illinois and Loverde Construction of Wheeling, Illinois for Track Mounted Hydraulic Equipment. Patton Rental was recently purchased by Altorfer Industries of Elmhurst, IL. The original bid was awarded to two separate contractors based upon lowest unit price. The contracts expired in October of 2017. Excavator rental contracts are an important tool for Public Works to utilize various specialized pieces of tracked excavators without the liability and cost of ownership.
In accordance with Village purchasing guidelines, Staff can request extensions up to the original contract length. Public Works is requesting Village Board approval to extend the existing contracts for the furnishing of Track Mounted Hydraulic Equipment for one year, which will be the second of three possible one year extensions. This extension would begin in January of 2019 and conclude in December of 2019. Staff has been pleased with the performance of these two contractors and recommends an extension.
Both contractors have agreed to extend the contracts with no increase to current unit prices. If this contract is rebid, the chances for unit price increases are high, as these rates are primarily labor and rental based, and hourly rates have increased by several percent over the last three years. Note that the unit price items #1 & #8 are for mobilization (delivering equipment to the job site) and will be applicable to both contractors.
RECOMMENDATION
It is recommended that the Village Board award a one year contract extension to Altorfer Industries of Elmhurst, IL with the unit prices for bid items 1, 2, 3, 4, 5, 7, 8, 12, 13, and 18 as noted on the attachment. It is also recommended that the Village Board award a one year contract extension to Loverde Construction of Wheeling, Illinois for bid items 1, 6, 8, 9, 10, 11, 14, 15, 16, and 17 as noted on the attachment. It is further recommended to authorize execution of all necessary documents.