Title
Amendment to Existing Ring Power Purchase Order for FY07 (NB)
This item involves increasing an existing purchase order due to increases in associated costs.
Explanation
In October 2006, the Fleet Department issued an annual blanket purchase order to Ring Power for parts and services of Caterpillar engines and equipment. The estimated cost of services for the requested 12 month period was $25,000. Due to the increase need for repairs and services to Caterpillar powered equipment, a modification to increase the existing purchase order is required in the amount of $35,000 for a total of $60,000 to cover expenses through September 2007.
Fiscal Note
Additional funding request of $35,000 is available in the Fleet Management's Budget for FY 2007.
Recommendation
The City Commission: 1) approve the purchase order modification increase to Ring Power for a total of $60,000; and 2) authorize the City Manager or his designee to execute modification.
Alternative Recommendation A: The City Commission require bidding a contract and risk losing the discount currently allowed under the Agreement.
Alternative Recommendation B: The City Commission return to past practice by requesting quotation on demand and risk losing the efficiencies and price protection of the current Agreement.