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A resolution accepting the terms of a cooperative purchasing master agreement for rental equipment for the Department of Water and Sewerage Services.
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WHEREAS, Tennessee Code Annotated § 12-3-1205(b) allows the Metropolitan Government of Nashville and Davidson County (“Metro”) to participate in a cooperative purchasing agreement for the procurement of any goods, supplies, services, or equipment with one or more governmental entities outside this state; and,
WHEREAS, Tennessee Code Annotated § 12-3-1205(b) allows Metro to participate in an out-of-state master agreement by adopting a resolution accepting the terms of the master agreement; and,
WHEREAS, the Purchasing Agent desires to participate in the master agreement between Sourcewell, a state of Minnesota governmental agency, and United Rentals (North America), Inc., a copy of which is attached hereto and incorporated herein; and,
WHEREAS, this master agreement was requested by the Department of Water and Sewerage Services but is available to all Metro Departments to utilize; and,
WHEREAS, Section 5.04.020 of the Metropolitan Code provides that all leases of equipment shall be approved by resolution of the Metropolitan Council if the annual expenditure for the lease exceeds five thousand dollars ($5,000); and,
WHEREAS, equipment rentals and equipment rental services are necessary for short-term project needs of the Department of Water and Sewerage Services; and,
WHEREAS, approval of the master agreement for equipment rentals is in the best interest of the citizens of the Metropolitan Government of Nashville and Davidson County.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the master agreement between Sourcewell, a state of Minnesota governmental agency, and United Rentals (North America), Inc., a copy of which is attached hereto and incorporated herein, is hereby approved.
Section 2. That participation in the master agreement for the provisions of equipment rentals, is hereby approved.
Section 3. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution accepts the terms of a cooperative purchasing agreement for rental equipment for the Department of Water and Sewerage Services (“Metro Water”). The original agreement is between Sourcewell, which is a Minnesota governmental agency, and United Rentals (North America), Inc. The total project value is $5,000,000.
Metro Water seeks to use this contract for pump rentals and ancillary equipment needed for emergency bypass pumping when a pumping station has failed or a sewer water main has collapsed, according to the cooperative request form.
The pricing in the cooperative purchasing agreement was from a competitive RFP with 11 offers, according to the cooperative request review form. It is unlikely that Metro would obtain a better value through a competitive solicitation. The agreement would expire on June 11, 2028. Sourcewell and United Rentals may agree to up to three additional one-year extensions.
T.C.A. § 12-3-1205(b) authorizes local governments to participate in cooperative purchasing agreements with governmental entities outside of the state, as long as the goods or services were competitively procured by the other governmental entity. T.C.A. § 12-3-1205(b) further provides that local governments may participate in a master agreement by adopting a resolution accepting the terms of the master agreement. M.C.L. § 5.04.020 requires that all equipment leases be approved by a Metropolitan Council resolution if the annual expenditure for the lease exceeds $5,000.
Fiscal Note: According to the Cooperative Request Review form from the Division of Purchases, the anticipated project value is $5,000,000.