July 21, 2010

MEMORANDUM

TO: Tony Des Chenes, Division Director

Commodities Division

DMB, Purchasing Operations

FROM: Mary Ostrowski, Buyer

Commodities Division

DMB, Purchasing Operations

SUBJECT: Evaluation Summary for ITB. No. 071I0200073 Agricultural, Grounds and Roadside Equipment, MDOT, DNRE, DMVA, MiDEAL, Participated NASPO States and their political subdivisions

Statement of Work

This request is for a three year contract with two option years for Agricultural, Grounds, and Roadside Equipment. The funding for the materials is as follows:

MDOT - 100% Restricted State Trunk Line Funds

DNRE - 100% Restricted Park Improvement, Park Endowment and Waterways Funds

DMVA – 100% Federal Funds

Statewide – 100% General Funds

Background Information

The State of Michigan wishes to establish a master contract(s) for State Agencies, MiDEAL members, and participating National Association of State Procurement Officers (NASPO) member states and their political sub-divisions, to procure, rent or lease Agricultural, Grounds, and Roadside Equipment. State Agencies include, but are not limited to: Michigan Department of Transportation (MDOT), Michigan Department of Natural Resources and Environment (DNRE) and Michigan Department of Military and Veteran Affairs (DMVA).

Buyer and Agency Review

The following person(s) reviewed the proposals:

Name Department

Mary Ostrowski, Buyer DTMB Purchasing Operations

Dan Smith MDOT

Jana Harding DNRE

Kim Graham DMVA

Bidders

The following Bidders submitted responsive/responsible bids:

Alamo Sales Corp. Seguin, TX

Clark Equipment Co. dba Bobcat Co. West Fargo, ND

CNH America, LLC. New Holland, PA

John Deere Company Cary, NC

Power Equipment Distributors Richmond, MI

Spartan Distributors, Inc. Auburn Hills, MI

* The following Bidder did not submit a responsive/responsible bid and therefore was unable to be considered for award:

Venture Products, Inc. Orrville, OH

Price Comparison

Government Estimate: $4,851,215.46

Bidder / Total Bid Price
(1 each Totals) / Total Negotiated Price
Alamo Sales Corp. / $45,850.00 / $44,474.00. Also provided an additional 2% on items they originally offered an 18% discount on under Special Programs. (now 20%)
Clark Equipment Co. dba Bobcat Co. / $325,467.00 / Unable to Reduce
CNH America, LLC. / $2,475,139.00 / Unable to Reduce
John Deere Company / $2,009, 781.05 / Unable to Reduce
Power Equipment Distributors / $550,314.06 / Provided a 1% 10 day payment discount
Spartan Distributors, Inc. / $149,486.05 / Unable to Reduce

Selection Criteria/Evaluation

This solicitation was posted to the website for five (5) weeks. Seven vendors, Alamo Sales Corp, Clark Equipment Co., CNH America, John Deere Company, Power Equipment Distributors, Spartan Distributors, Inc., and Venture Products, Inc. submitted online bids. Venture Products, Inc. did not submit a responsive/responsible bid and therefore was not evaluated. Evaluation criteria was based on the following: Product Quality, Service Capabilities, Delivery Capabilities, Company Information/Capabilities, and Prior Experience/Past Performance. All six proposals passed the minimum threshold of 80 points. Reduced pricing was requested from all six bidders. Alamo Industrial provided a discounted price quote, and Power Equipment Distributors provided a 1% 10 day payment discount. The other four responsive/responsible bidders were unable to provide reduced pricing.

Award Recommendation

Based on all of the information discussed above, it was determined that it is in the best interest of the State Agencies, MiDeal members, and participating National Association of State Procurement Officers (NASPO) member states and their political sub-divisions to award to all six responsive/responsible bidders. Award is recommended to the six bidders for all items they proposed.

Award Recommendation Total / $4,851,215.46
Grand Total per Year (of 3 yrs total) / $1,617,071.82
Per Contract (of 6 contracts total) / $808,535.91
Per Contract per Year / $269,511.97

Was a JEC utilized?

¨ Yes. x No.

How was pricing submitted?

x One Step. ¨ Multiple Step (pricing separately sealed).

How was pricing factored into the award decision?

x Best Value/Lowest Price ¨ Best Value/Combination of Score and Price

Signatures:

Signature Date

¨ Reviewed and approved by Buyer Manager _____

¨ Reviewed and approved by Division Director _____

¨ Reviewed and approved by Director _____