REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SZARINA LOZANO, Senior Management Analyst
General Services Department, Purchasing Division
SUBJECT
Title
Actions pertaining to the award of four Citywide Cooperative Purchase Agreements (Requirements Contracts) for equipment and vehicle rentals for various departments on an as needed basis in the total aggregate amount of $1,000,000 per year plus annual CPI increases to (Bid File 9705):
1. Caterpillar, Inc. of Fresno, California through June 11, 2028, with one optional one-year extension
2. Altec Inc. dba Global Rental Inc. of Bakersfield, California through June 11, 2028, with three optional one-year extensions
3. Herc Rentals Inc. of Bonita Springs, Florida through June 11, 2028, with three optional one-year extensions
4. United Rentals (North America) Inc. of Fresno, California through June 11, 2028, with three optional one-year extensions
Body
RECOMMENDATION
Staff recommends Council approve the award of four Citywide Cooperative Purchase Agreements (Requirements Contracts) for equipment rentals for various departments on an as needed basis in the total aggregate amount of $1,000,000 per year plus annual CPI increases to Caterpillar, Inc. of Fresno, California through June 11, 2028, with one optional one-year extension; Altec Inc. dba Global Rental Inc. of Bakersfield, California through June 11, 2028, with three optional one-year extensions; Herc Rentals Inc. of Bonita Springs, Florida through June 11, 2028, with three optional one-year extensions; and United Rentals (North America) Inc. of Fresno, California through June 11, 2028, with three optional one-year extensions.
EXECUTIVE SUMMARY
The General Services Department, Purchasing Division, recommends establishing Cooperative Purchase Agreements (CPA) with Caterpillar, Altec dba Global Rental, Herc Rentals, and United Rentals for equipment and vehicle rentals. These agreements will enable City departments to rent equipment and vehicles as operational needs arise. Departments such as Airports, FAX, General Services, Public Works, and Public Utilities have historically utilized these vendors for a range of rentals including temporary fencing, road plates, vehicles, generators, scissor lifts, concrete saws, and excavators. Utilizing rentals has proven to be a cost-effective and timely solution, particularly in emergency situations where property must be protected or equipment becomes inoperable.
The Cooperative Purchase Agreements will be authorized through competitively solicited cooperative procurement processes administered by Sourcewell (a State of Minnesota local government agency). All four contracts were awarded via Sourcewell RFP# 040924. The agreement with Caterpillar, Inc. went into effect on October 3, 2024, and only has the potential for one optional one-year extension. The three remaining agreements went into effect on June 11, 2024, and have the potential for three optional one-year extensions. Subsequently, the two different potential contract extension options have necessitated the need for two separate contract durations.
BACKGROUND
The General Services Department, Purchasing Division, is responsible for administering the citywide agreements for equipment and vehicle rentals.
Partnering with local equipment rental retailers, Caterpillar, Altec dba Global Rental, Herc Rentals, and United Rentals through cooperative agreements, the City will benefit by providing cost savings, product availability, consistent quality, and sustainable options when renting equipment for special projects. For instance, the rental of an extended reach excavator, a specialty machine infrequently used by the Wastewater Division, proves more cost-effective than purchasing it. Furthermore, rental equipment becomes necessary when existing equipment encounters downtime due to maintenance or prolonged issues. The four vendors have a wide range of products and supplies that are essential for City operations. Cooperative Purchase Agreements will ensure that the equipment is readily available, reducing downtime.
Utilizing cooperative agreements was determined to be the most cost-effective and overall best value for obtaining equipment and vehicle rentals. All four contracts were awarded via Sourcewell RFP# 040924. The agreement with Caterpillar, Inc. went into effect on October 3, 2024, and only has the potential for one optional one-year extension. The three remaining agreements went into effect on June 11, 2024, and have the potential for three optional one-year extensions. Subsequently, the two different potential contract extension options have necessitated the need for two separate contract durations.
The Purchasing Division has approved the Cooperative Purchase Agreements and recommends Council approval.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable. The City is not issuing a request for proposals for these Cooperative Purchase Agreements. However, Caterpillar and United Rentals maintain a place of business within the City of Fresno limits.
FISCAL IMPACT
The funding has been included in each department’s line-item budget as part of the FY2027 adopted budget to cover the cost of equipment and vehicle rentals.
Purchases utilizing these contracts cannot be fulfilled using federal funds if prohibited by the funding source.
Attachments:
Caterpillar Inc. CPA
Caterpillar Inc. Contract #040924-CAT
Global Rental Inc. CPA
Global Rental Inc. Contract #040924-ALT
Herc Rentals Inc. CPA
Herc Rentals Inc. Contract #040924-HRC
United Rentals Inc. CPA
United Rentals Inc. Contract #040924-URI
Original Request for Proposals #040924
Proof of Publication #040924
Proposal Opening Record #040924
Proposal Evaluation #040924
Comment & Review #040924
Board Resolutions #040924