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0501O DCS6 FOUR WHEEL DRIVE BACKHOE LOADER

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DIRECTOR CORPORATE SERVICES REPORT
18th January 2005

DCS6               FOUR WHEEL DRIVE BACKHOE LOADER
                   FILE: C15-668    MSW

SUMMARY:

Reporting on tenders received for the purchase of one (1) four wheel
drive backhoe loader – ERG Class BL4 and the sale of V1120 Caterpillar
428B Backhoe.



Council’s plant committee considered the purchase of a wheel loader at
its meeting 15th June 2004; due to unforeseen circumstances the
program was adjusted and the funds were redirected to the purchase of
a backhoe to replace V1120 caterpillar 428B backhoe.

Tenders were called for the supply of one (1) four wheel drive backhoe
loader and the sale of V1120 Caterpillar 428B backhoe. Tenders closed
at 10.00 am 4th January 2005 where four (4) companies submitted
tenders for the supply of one (1) four wheel drive backhoe loader, and
one (1) company submitted a tender for the sale of V1120.

Company                                                           Backhoe Manufacturer
Case Equipment Sales                                              Case
Westrac Pty Ltd                                                   Caterpillar
Hitachi Construction Equipment Australia                          John Deere
CJD Construction Equipment                                        Volvo
Case Equipment Sales                                              Fermec
W & P Truck Sales                                                 Sale of V1120

Upon evaluation the following Backhoes were identified as suiting
Council's requirements:

Company                                        Backhoe                          Cost (GST exc)
                                               Manufacturer/
                                               Model
CJD Construction Equip                         Volvo BL71                       $128,000.00”
Case Equipment Sales                           Fermec 860                       $133,173.64” *
Case Equipment Sales                           Case 580 SR                      $133,260.00 *
Hitachi Construction                           John Deere 315SG                 $138,600.00 “
Westrac Pty Ltd                                Caterpillar 432D                 $152,540.00 ^

_________________________________________________________
THIS IS PAGE 1 OF THE REPORT OF DIRECTOR CORPORATE SERVICES SUBMITTED TO THE ORDINARY MEETING OF KEMPSEY
SHIRE COUNCIL DATED 18th JANUARY 2005.
                                                                                                   J-2
    Notes:

    ^ Included in the price is "Product Link” a satellite tracking and
    monitoring system that is used for mechanical diagnosis and machine
    locality.

    * Included in the price is satellite tracking that is only used for machine
    locality.

    “ Pilot controls not available on backhoe controls. (Pilot Controls only
    available in centre mount backhoes on John Deere machines)

    Tenders were evaluated using net present value (NPV), operator
    evaluation, maintenance evaluation, risk, and product support. The
    evaluation is as follows:

  Maximum Points               100             40              15                 15                15           15
        Weighting
      (Must=100)           100.00%         40.00%          15.00%             15.00%             15.00%        15.00%
                                             Net
                             Final                         Operator        Maintenance            Risk         Product
                                           Present
                            Ranking                       Evaluation        Evaluation         Evaluation      Support
   Make & Model                             Value
Cat 432D                      96.24         36.24            15.00             15.00              15.00        15.00
Case 580SR                    95.75         36.64            15.00             14.12              15.00        15.00
John Deere 315SG              94.79         40.00            13.13             15.00              11.67        15.00
Volvo BL71                    89.98         36.07            13.13             14.12              11.67        15.00
Fermec 860                    89.32         35.41            13.13             14.12              11.67        15.00

    The pilot control joysticks for the backhoe operation and comfortable
    air adjustable seat was seen as a great safety feature on the Caterpillar
    432D backhoe from an operators perspective, and the satellite access
    to the machine for mechanical diagnostics and location tracking via the
    internet reduces council mechanic’s travelling time, repair times and
    downtime of the machine, operators and mechanics.

    Evaluation of warranty periods provided on the machines tendered has
    been carried out, with Caterpillar identified as providing a higher
    standard of cover compared to other manufacturers, 12 months /
    unlimited and extended warranty on drive train and hydraulic system to
    36 months / 6000 hrs.

    Sale of V1120 Caterpillar 428B backhoe was evaluated with Westrac
    Pty Ltd providing the highest trade in value.

                       Company                                      Cost (GST exc)
                       Westrac Pty Ltd                              $28,000
                       Hitachi Construction                         $26,000
                       Case Equipment Sales                         $25,000
                       W & P Truck Sales                            $23,300



    _________________________________________________________
    THIS IS PAGE 2 OF THE REPORT OF DIRECTOR CORPORATE SERVICES SUBMITTED TO THE ORDINARY MEETING OF KEMPSEY
    SHIRE COUNCIL DATED 18th JANUARY 2005.
                                                                                               J-3
In conclusion, from evaluations and discussions with Council Staff it is
recommended that a Caterpillar 432D Backhoe be purchased, fitted
with "Product Link" and that V1120 be traded in with Westrac Pty Ltd.

REPORT IMPLICATIONS:

     •     Environmental

Nil

     •     Social

Nil

     •     Economic (Financial)

Adoption of the following recommendation would result in
expenditure of $152,540.00, which will be funded, from the
2004/2005 Fleet Replacement Program. The Fleet Replacement
program provides for acquisition costs of $200,000 (redirected
from wheel loader purchase).

     •     Policy or Statutory

Nil

     •     Director's Review

As per the report.

RECOMMENDATION:

1.       That the tender from Westrac Pty Ltd for the purchase of a
         Caterpillar 432D Backhoe fitted with product link, pilot
         controls, as per tender specification, at a cost of
         $152,540.00 (GST excl) be accepted.

2.       That the sum of $28,000 (GST excl) from Westrac Pty Ltd
         for the purchase of V1120 Caterpillar 428B Backhoe be
         accepted.



………………………………..
G B Snape
DIRECTOR CORPORATE SERVICES




_________________________________________________________
THIS IS PAGE 3 OF THE REPORT OF DIRECTOR CORPORATE SERVICES SUBMITTED TO THE ORDINARY MEETING OF KEMPSEY
SHIRE COUNCIL DATED 18th JANUARY 2005.

				
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