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Agenda 05/09/2023 Item #16E 3 (Sole-Source waiver for the period of five years for parts and services from Menzi USA Sales, Inc.)16.E.3 05/09/2023 EXECUTIVE SUMMARY Recommendation to authorize expenditures under a sole -source waiver for a period of five years, in an amount not to exceed $100,000 per Fiscal Year, to obtain Original Equipment Manufacturer ("OEM") parts and services from Menzi USA Sales, Inc., necessary to maintain County -owned Menzi Muck Walking Excavators. OBJECTIVE: Efficiently maintain County vehicles and equipment through an approved vendor and dealership for parts, supplies, and services. CONSIDERATIONS: Menzi USA Sales, Inc., is the sole distributor and provider of OEM parts and services in Florida for Menzi Muck Walking Excavators. The County owns several Menzi Muck Excavators that are used by the Road Maintenance Division. The County realizes a cost benefit when it maintains safe and reliable pieces of equipment. The Fleet Division can maintain these pieces of equipment for a fraction of the cost of replacement, by having access to a reliable service, warranty, and part supplier. Such maintenance provides the added benefit of greatly minimizing downtime. In accordance with Section Eleven, subparagraph 10, of Collier County Procurement Ordinance 2017-08, as amended, staff requests that the Board find that it is in the best interest of the County to waive competition and allow the procurement of OEM parts, services, and related materials from Menzi USA Sales, Inc., as a sole source vendor for fiscal year 2023 through the end of fiscal year 2027. Historically, purchases from this vendor were approximately $34,518 per fiscal year for OEM parts, services, and related materials. With inflation and a third Menzi unit now in service, purchases are expected to exceed that historical spend. Purchases will be made using either a Purchase Order or a purchasing card. There are only two major manufactures of this type of equipment and the units typically have a 10-year life cycle in which Fleet Management is tasked to maintain the equipment. Fleet Management in conjunction with Road and Bridge will continue to analyze the market for availability of walking excavators to be in a position to make future recommendations of new equipment. FISCAL IMPACT: Funds for repair parts and maintenance services are budgeted in the Fleet Management Administration, Fund 521, operating budget. Expenditures with Menzi USA Sales, Inc., are projected not to exceed $100,000 per fiscal year. GROWTH MANAGEMENT IMPACT: No growth management impact will result from this action. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: To authorize expenditures under a sole -source waiver for an amount not to exceed $100,000 per fiscal year for OEM parts and service from Menzi USA Sales, Inc., needed to maintain Menzi Muck Walking Excavators for a period of five years, commencing in fiscal year 2023 through the end of fiscal year 2027, as requested above. PREPARED BY: John King, Fleet Director, Fleet Management Division ATTACHMENT(S) 1. Menzi USA Waiver 041(PDF) Packet Pg. 845 16.E.3 05/09/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.3 Doc ID: 25376 Item Summary: Recommendation to authorize expenditures under a sole -source waiver for a period of five years, in an amount not to exceed $100,000 per Fiscal Year, to obtain Original Equipment Manufacturer ("OEM") parts and services from Menzi USA Sales, Inc., necessary to maintain County -owned Menzi Muck Walking Excavators. Meeting Date: 05/09/2023 Prepared by: Title: Operations Analyst, Senior — Fleet Management Name: Mario Menendez 04/26/2023 4:11 PM Submitted by: Title: — Fleet Management Name: John King 04/26/2023 4:11 PM Approved By: Review: Fleet Management Procurement Services Procurement Services County Attorney's Office Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners John King Director Review Ana Reynoso Level 1 Purchasing Gatekeeper Sandra Herrera Procurement Director Review Scott Teach Level 2 Attorney Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Blanca Aquino Luque Additional Reviewer Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 04/26/2023 4:34 PM Completed 04/27/2023 12:34 PM Completed 04/27/2023 12:57 PM Completed 04/28/2023 9:00 AM Completed 04/28/2023 9:54 AM Completed 04/28/2023 10:00 AM Completed 05/02/2023 4:20 PM Completed 05/03/2023 10:40 AM 05/09/2023 9:00 AM Packet Pg. 846 1 6.E.3.a CoT�er County Waiver Request Form Instructions Completed waiver requests accompanied by any associated backup documentation (sole source letter, business case, etc.) must be submitted to the division's Procurement Strategist for any procurement, without competition, in excess of $3,000. Waiver requests greater than $50,000 will require approval by the Board of County Commissioners. Sole source refers to a procurement where the selection of one particular supplier to the exclusion of all others may be based on having only one supplier in the marketplace, proprietary technology, copyright, patent, or a supplier's unique capability. Single source refers to a procurement directed to one source because of standardization, warranty, geographic territory, or other factors, even though other competitive sources may be available. Requester Name: Mario Menendez Division: Fleet Management Item/Service: PARTS, SERVICE, FREIGHT, SUPPLIES, INSPECTIONS, WARRANTY Vendor Name: Menzl USA Historical Not to Exceed Is there an agreement associated with this Countywide $50,000 annual Requested 4/23-10/27 Amount per $ 100 000 waiver to be reviewed by Contracts? Spend: date range: Fiscal Year: ❑ Yes ❑✓ No ❑✓ Sole Source ❑ Single Source ❑ One Time Purchase ❑✓ Multiple Purchases Description of Purchase: Enter a description of the item(s) that will be purchased under this waiver. OEM parts, service, supplies, inspections, & warranty on County -owned equipment as well as all freight/shipping charges. Purpose: Describe in detail, the public purpose of the requested item(s) and why it is essential to County operations. To maintain all County -owned Menzi Muck articulated "walking" excavators with OEM parts, services, and warranty issues. Information Technology: Select Yes if the products/services are related to Information Technology. If yes, please provide the Purchasing Compliance Code (PCC) number or email approval documentation. ❑ Yes ❑✓ No If yes, provide the PCC number: a, Q Revised 06/17/2021 Packet Pg. 847 16.E.3.a Collier county VVdlVCi nUUUCJI ruin Justification: Identify the criteria that qualifies this purchase as a sole or single source. Select from the list below. Check all that apply (if box is checked, please make sure to provide an explanation below): ❑✓ Sole Source ❑✓ Only Authorized Vendor or Distributor: Is this vendor the only vendor authorized to sell this product/service? If yes, explain below and provide documentation from the manufacturer confirming claims made by the distributors. ❑ No Comparable Product or Service: Is there another vendor who can provide a similar product/service, regardless of cost, convenience, timeliness, etc.? ❑ Product Compatibility: Does this product/service provide compatibility with existing equipment that prohibits switching to another comparable brand/vendor? If yes, provide the detailed explanation below, including what would occur if the other brand/vendor were used. ❑ Proprietary: Is this product/service proprietary? If yes, provide a detailed explanation below on how its use is restricted by patent, copyright or other applicable laws and provide documentation validating that claim. ❑ Single Source ❑ Standardization: Is this product/service part of a purchase that the County has already standardized on? If yes, please provide the detailed information below. Date of BCC Standardization: BCC Agenda Item number: ❑ Warranty: Is this the only vendor able to complete factory -authorized warranty services on County owned equipment? If yes, provide the documentation verifying the warranty. ❑ Geographic Territory: Is this vendor the only vendor authorized to sell this product/service in our region? If yes, provide documentation from the manufacturer confirming those claims. ❑ Other Factors: Any other reason not listed above, explain below. Explain: How does this purchase meet the identified sole or single source criteria listed above? The following is the only sales and service center listed in the United States. Menzi USA Sales Inc. 1850 Fairbanks Street Lakeland, FL 33805 Tel +1 863 603 7979 Fax +1 863 603 7987 sales@menziusa.com www.menziusa.com Managing Director Menzi Muck Paul Meadows pmeadows@menziusa.com https://www.menzimuck.com/en/service-and-sales/contact-service/north-america/usa/ Menzi USA letter attached. Revised 06/17/2021 Packet Pg. 848 1 6.E.3.a CoiLer County Waiver Request Form How was the decision made to use this vendor? Describe in detail if a formal standardization process was performed via Procurement or if there is a historical precedence established for the use of the product, please explain purchase, and use history and the current level of County investment in the product. Menzi USA Sales Inc. is the Sole Source distributor for Menzi Muck Excavators, parts, and service in the United States. There are no other dealerships in the United States. The County currently owns three Menzi Muck Excavators with a total original purchase price of $1,314,785.38. These excavators are maintenance intensive and require expensive OEM parts to service and repair. The PO amount spent FY21 $33,107.08, FY22 $33,421.00 and YTD FY23 $37,028.36. Explain why it is in the County's best interest to use this product/service rather than issuing a competitive solicitation: What are the benefits from the continued use? Are there costs that would be incurred if a different vendor/product were used? What would occur if another brand/vendor were used? The County -owned Menzi Muck excavators are utilized by GMD mainly for stormwater management. They were purchased through the Florida Sheriff's Association bid as approved by Procurement. This request is for the purpose of maintaining the County -owned equipment. Parts /Services supplied by any other vendor does not meet OEM requirements and cannot be used. The competitive process is done during the initial purchase of the equipment. Fleet Management has the responsibility to maintain the equipment in a safe and cost-effective manner. Explain how this pricing compares to other vendors/products and is it considered to be fair and reasonable: Provide information on historical use and whether pricing has increased/decreased. If sole source and no other product is available, provide the cost for addressing the needs via an alternate approach. Menzi USA is the sole source for Menzi equipment. Parts, service, freight/shipping, supplies, inspections, or warranty items must come from this vendor to meet OEM requirements to operate safely and function properly. There is no other Menzi vendor to compare. Parts and service cost have risen on all heavy/construction type equipment. Will this purchase obligate us to future ancillary products or services? Either in terms of maintenance or standardization. ❑ Yes 0 No If yes, explain what types: Revised 06/17/2021 Packet Pg. 849 1 6.E.3.a Cover County Waiver Request Form Market research and market alternatives: When was the last time a market evaluation was performed to determine if either the technology or vendor offerings have changed? Based on the life expectancy of the product, when do you anticipate evaluating the market again? Please attach a detailed market evaluation report should the complexity, duration and dollar amount of the purchase be a high ris to the County. Market research was done 7/2021. There are only two major manufactures of this type of equipment. Road Maintenance prefers the Menzi brand after utilizing both over several years. Road Maintenance has utilized the Menzi brand since 2005. The units typical have a 10-year life cycle. Next market evaluation is expected in 2026. It is a felony to knowingly circumvent a competitive process for commodities or services by fraudulently specifying sole source. Florida Statute 838.22(2). Requested by: Mario Menendez Digitally signed by Sig nature:MenendezMario DatM,ne. Daf e: 2023.03.08 10:12:59 Date: 3/8/23 -05'00' Division Director:John KingSignature: signe gitally by KingJOhn OS'002023.03tl0810!O9J54" Date: 3/H/23 Department Department Head: Dan Rodriguez Digitally signed by Dan Signature:Dan Rodriguez Rodriguez 23.03.08,42,,2 Date: 3/8/23 Required if over $50,000 05'00' 9 Procurement Strate ist: Matthew Catoe Signature: Digitally2023ned308,02by eMatOew 9 atoeMatt eW Date: 20signe 130802eMalthew Date: Procurement Director: Sandra Herrera Digitally signed by g HerreraSandra HerreraSandra Signature: Date: Or designee oa4'0002023.03.1512:45:00 For Procurement Use Only: Q✓ Approved Requesting Additional Information Requires RFI/Intent to Sole Source Rejected Procurement Comments: Fleet Management in conjunction with Road and Bridge will continue to analyze availability of walking excavators for future recommendation of new equipment. ❑ Current FY_ Approval ❑✓ Multi -Year Approval Start Date: Pending BCC End Date: Pending BCC Q Revised 06/17/2021 Packet Pg. 850 1 6.E.3.a Mcna USA Sales, Inc 1850 Fairbanks Street Lakeland, FL33805 Tel: 863 603-7979 se I evn m cn n usa cn m Menzi USA Sales, Inc. FEBRUARY 24, 2023 COLLIER COUNTY BCC ADMINISTRATIVE SERVICES DEPARTMENT FLEET MANAGEMENT DIVISION 2901 COUNTY BARN ROAD NAPLES, FL 34112 RE: LETTER OF AUTHORIZATION TO WHOM IT MAY CONCERN: This letter is to inform Collier County BCC that .Menzi USA Sales, Inc., located at 1850 Fairbanks Street, Lakeland, FL 33805, is the sole source for the Menzi Muck Walking Excavator, Menzi Muck parts and Menzi Muck service. Sincerely, i Christopher Meadows- Vice President Menzi USA Sales, Inc. 863 603-7979 chi -is it,menziusa.coin Packet Pg. 851