Tender
Tender
Tender
5.6
PURPOSE The purpose of this report is to consider the tender called to replace one of Councils existing backhoe/loaders.
BACKGROUND Tender 485/99/TWS was called for the supply of a backhoe/loader to replace SW102 a John Deere 315D allocated to the Operational Services Section. The tender closed on 10th November 1999.
REPORT Tenders were received from six companies offering seven different backhoe/loaders. Only one company submitted an outright purchase offer for Council existing machine. All submissions s are tabulated in the schedule below and details are contained in Appendix 5.8: Company Make/Model Purchase Price $99,000 $115,689 $112,700 $113,800 $118,723 $108,517 $111,245 Trade Price $39,000 $52,689 $45,000 $40,000 $43,000 $30,000 $30,000 C/over Price $60,000 $63,000 $67,700 $73,800 $75,723 $78,517 $81,245 Supply Only Price Not stated $101,000 $112,700 Not stated $118,723 $108,517 $111,245
1 2 3 4 5 6 7
McIntosh & Son Casequip Hitachi Const. Westrac CFC NS Komatsu NS Komatsu
New Holland LB75 Case 580LE John Deere 315SE4 Cat 428C JCB 3CXSSED Komatsu WB93R-2 Komatsu WB97R-2
Outright Purchase Offer Company W & P Truck & Machinery SW102 $31,611
A demonstration of the New Holland, John Deere and JCB machines was arranged. Each machine was evaluated for digging and loading capacity and general ergonomics under identical conditions. Council already operates a Cat 428C backhoe as offered by Westrac in the current tender, therefore a working demonstration of this machine was not required. Casequip have Administrators/Receivers appointed and until this situation is resolved Case equipment will not be considered or demonstrated. The Komatsu machines are new models and not available in Australia until early 2000 and therefore were not demonstrated for this tender. The following comments relate to each machine offered.
5.6
Cont 2 d
New Holland Model LB75 The New Holland backhoe/loader offered by McIntosh & Son is fitted with a 55kw engine with manual power shuttle transmission. The demonstration indicates this machine lacks power for heavy work and also the gearbox and implement controls are not well designed for ergonomic efficiency. Particularly the 4 in 1 bucket control which the operators report would cause fatigue with continual use. Also, the loader assembly arms, linkages, pins and bushes are very light duty with high wear rates anticipated. The test operators responses to a questionaire regarding this machine were generally below average with respect to cab, operational features and serviceability. Therefore this machine is not recommended for purchase. Case Model 580LE The Case backhoe/loader offered by Casequip will not be recommended for purchase. The Casequip tender documents are clearly stamped Administrators/Receivers Appointed and a company representative advised that Casequip has excessive debt with their principal supplier ie Case Corporation. It has also come to the attention of Council Officers via the June 1999 edition of The Earthmover & Civil Contractor magazine that Case Corporation has been bought out by the Fiat Group, who also currently own the New Holland company. Until the marketing plans of these groups are known and the current financial problems of the local Case equipment distributor are resolved, purchase should not proceed as Case backhoes or any other Case product could be discontinued and replaced by the Fiat products. John Deere Model 315SE The John Deere backhoe/loader offered by Hitachi Construction Machinery is an updated model of the unit being replaced (SW102). The existing unit has a very poor financial record of operating expenses versus collections. This is due to frequent transmission failure, rear wheel bearing failure and extensive engine repairs. The existing machine has proven to be mechanically unreliable. As a result of the demonstration of the tendered machine the test operators reported problems with visibility while working both the loader and backhoe. This machine did not gain a high level of operator acceptance on test and will therefore be no longer considered. Caterpillar Model 428C The Cat backhoe/loader offered by Westrac is identical to SW103 operated since mid 1997. The existing machines financial statistics indicate this unit has relatively high operating costs for the hours worked. Also with its manual power shuttle transmission and other features the operation of this model is ergonomically dated. The tendered machine offered is the same configuration as SW103 including the manual transmission. A close examination of the performance details and standard warranty periods of the various machines tendered reveals the Cat has a shortfall in some important areas compared to the preferred model. Therefore the Cat will not be recommended for purchase.
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Cont 3 d
JCB Model 3CX The JCB backhoe/loader offered by CFC Equipment is the preferred model. This machine had excellent operator acceptance from the demonstration. The questionaire responses indicated this unit operator station, controls, comfort and visibility are superior to the other models offered. s s The machines digging, loading, transport capability and general design are all of a high standard. The JCB product is well supported by CFC Equipment who have an established mechanical workshop to service the equipment and a spare parts warehouse to provide future replacement parts requirements. In terms of capital cost the JCB backhoe/loader is not the lowest tender, however the unit is fitted with the following additional features: Power shift transmission valued at $3,800. Backhoe bucket quick hitch facility valued at $1,500. Two-mode hydraulic operation not valued, however this feature significantly improves efficiency and is not available on the other machines tendered. The JCB backhoe/loader comes with a 3 year, 6,000 hour warranty which surpasses all other offers in this tender. This would normally be costed at $1,200. These added features are extremely beneficial to the operation of the machine in terms of improved productivity and safety of operation. This proposal from CFC Equipment for the JCB backhoe/loader offers the best value for money. The JCB will be recommended for purchase. It is noted the outright purchase submission received does not offer any further savings in this instance. Komatsu Models WB93R-2 and WB97-2 The two Komatsu model backhoe/loaders offered by NS Komatsu are manual and power shift models respectively. These machines are new models in the Komatsu range and are not available until February 2000. It is proposed to defer consideration of these units until several of these models are working locally. These machines are not recommended for purchase.
FINANCIAL/BUDGET IMPLICATIONS Council allocated $70,000 in the 1999/2000 Budget for the changeover of this backhoe/loader. The changeover cost is $75,723, which is $5,723 over the budget allocation. However the over expenditure can be covered by savings on Tender 481/99/TWS for two tip trucks. The savings on this tender were approximately $26,000.
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Cont 4 d
RECOMMENDATION That Council resolve to: Purchase one JCB Model 3CX backhoe/loader with power shift transmission and rear quick attach from CFC Equipment at a total cost of $118,723, trade the existing backhoe/loader (SW102) for $43,000 realising a changeover cost to Council of $75,723.
CARRIED