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Contract No.:
Current Term:
Expiration Date:
Title: Marina Forklift — Renewal of Lease
Recommendation:
❑ Sole Source Contract
❑ Solicit Competition
❑ Access Contract
Procurement Contracting Officer:
Other
Background:
Procurement has been asked to research the feasibility of exercising the annual renewal option of its lease
with Taylor Leasing Corporation, d/b/a Taylor Leasing & Rental ("Taylor") for a Marine Forklift (Wiggins
Marina Bull LoPRO, Model No. W2.9M2-130-H2 37/12 LoPRO). The sixty -month lease originated as an
emergency purchase on November 12, 2015. The purchase price of the forklift was $316,000. The City opted
to lease the vehicle at a cost of $5,819.00 per month, for a period of sixty months; renewable annually. Upon
completion of the full five-year term of the lease, the City will have the option to purchase the vehicle for
$1.00.
Research Conducted:
Market Research was conducted by Procurement to ascertain current market conditions and trends, and to
compare this product with others for the purpose of lease or purchase.
A review of prior procurement documents, vendor outreach and an internet search revealed two other
products available within the local market that match the capacity and functionality required for our marinas:
1. W. E. Johnson Equipment Company ("Johnson") - Marine Travelift M2500H Hydro M_Drive Forklift
2. Hoist Liftruck Mfg., Inc. ("Hoist") - Neptune Series Model M-250 Forklift
The City purchased a Neptune Series Model M-250 from Hoist in 2008. This purchase resulted in many
repairs that were not covered under warranty. The User Department was left wholly dissatisfied with the
workmanship of the product and the service provided by Hoist, and has further requested that this company
not be given the opportunity to participate in future procurement processes for marine forklifts because of its
abhorrent past performance. Numerous emails support the Department's assertions about its experience
with this vendor.
Procurement reached out to the Taylor, which indicated that the purchase / lease prices have not changed
significantly since the City executed the current leasing agreement in November, 2015.
Procurement received a quote from Johnson for a comparable forklift. The purchase price quoted was
$343,347. A lease -purchase option for this vehicle is also available at a cost of $5776.58 per month, for sixty
months. Upon completion of the sixty -month lease, the City will have the option to purchase the vehicle for
$ 70, 000.00
Comparable Contracts:
No comparable contracts were found for the lease of these vehicles. It is of note that the specifications were
written to fit the needs of the City of Miami's Marinas. This customization may contribute to the lack of
comparable contracts.
Recommendation:
Taking into consideration all factors involved, it is my recommendation to renew the annual lease with Taylor.
This gives the City a reliable piece equipment that performs as needed, at the best price. As of this point, the
City has invested $69,828 in the piece of equipment being leased. DREAM is extremely satisfied with the
performance of the forklift and the company that provided it. According to Marinas Staff, it is the intention of
DREAM to exercise the purchase option at the conclusion of the sixty -month term of the lease. A decision to
not renew the lease at this point would forfeit the monies already invested and require DREAM to resolicit
for a forklift. The new solicitation could r in the qui ---.n of a vehicle of lesser quality and greater price.
Procurement Contracting Officer:
Procurement Contracting Ma ager—
Director/Asst. Director:
Date: / Z µ 7
Date:
Date: