Page 10 - July/Aug 2015 Vol. 33 No. 2
P. 10
equipment acquisition By Travis Smith
Evaluating Bids Using Learn how others consider
A Total Value Approach reliability, safety and
service support when
evaluating machine bids.
Often, the initial price of equipment lasts in the end,” said Bo Mills, Director said Mills.
obstructs an organization’s ability to of Public Works for Germantown, Ten- If your organization doesn’t employ
select equipment that can offer the most nessee.
long-term value. By approaching the bid its own veteran maintenance team – or
evaluation process with an eye toward Mills said some of the aspects his team even if it does – it helps to have equip-
total value, governmental agencies can looks for when building specifications for ment that is designed for easy service.
often acquire equipment that will better a bid include reliability, safety and service Faster repairs, readily available parts and
leverage the tax payers’ investment over support, all of which end up contributing more efficient maintenance equal more
the long term. to lower costs over time. Mills points out uptime. Parts, service and technician
that having an equipment dealer nearby availability should all be factored into
“We’ve had lemons, we’ve had a bunch to provide parts and service can consid- bid specifications, said Robert Colbaugh,
of experimental stuff, and we’ve had erably reduce downtime. current Carter County Highway Depart-
equipment that was not time-tested or ment Superintendent and former veteran
proven purchased for us to use, and it “If a machine is sitting in a shop or Tennessee Department of Transportation
just did not hold up. For my city and my awaiting a repair, it’s not available for employee.
tax payers, you have to ask how long it my guys, and we’re not being productive.
And for us, it’s all about productivity,” “It’s hard to get parts for some equip-
Weighing the Benefits
How to Develop Your Total Value Approach
to Bid Evaluation
One of the best ways to evaluate whether a bidder’s equipment and service is
right for you is to define the factors that will add the most value to your agency
before the bid evaluation process begins.
With so many factors to consider, where do you start? Here is a list of items
often included by agencies who evaluate bids based on total value:
u Parts availability, including a comparison analysis of costs per part for
machine and whether or a third-party will be subcontracting parts to you
u Equipment safety features, including sturdier handrails, ergonomic cabs,
extra visibility, rearview cameras
u Dealer location in terms of proximity to your job sites or headquarters
u Dealer’s business hours, including parts, service, rental and access to the yard
u Vendor’s support capability, including number of field technicians, shop technicians,
parts counter sales employees and line items stocked for the machine you are buying
u Service and support history gleaned from friends and peers
u Operator training services, including the types of available training, cost
per student, length of classes and maximum number of students per class
u Technical training services, including cost and length of classes and
maximum number of students per class
u Warranty coverage, including additional services provided by the dealer
beyond the standard manufacturer’s warranty
u Life cycle cost, which can include the machine price, scheduled maintenance,
estimated repairs and potential buy-back or resale values
Often, agencies organize these factors into an evaluation form, assigning
minimum and maximum values, as well as weighing factors to each benefit,
making it even easier to compare bids using a total value approach.
10 TPW July/August 2015
Evaluating Bids Using Learn how others consider
A Total Value Approach reliability, safety and
service support when
evaluating machine bids.
Often, the initial price of equipment lasts in the end,” said Bo Mills, Director said Mills.
obstructs an organization’s ability to of Public Works for Germantown, Ten- If your organization doesn’t employ
select equipment that can offer the most nessee.
long-term value. By approaching the bid its own veteran maintenance team – or
evaluation process with an eye toward Mills said some of the aspects his team even if it does – it helps to have equip-
total value, governmental agencies can looks for when building specifications for ment that is designed for easy service.
often acquire equipment that will better a bid include reliability, safety and service Faster repairs, readily available parts and
leverage the tax payers’ investment over support, all of which end up contributing more efficient maintenance equal more
the long term. to lower costs over time. Mills points out uptime. Parts, service and technician
that having an equipment dealer nearby availability should all be factored into
“We’ve had lemons, we’ve had a bunch to provide parts and service can consid- bid specifications, said Robert Colbaugh,
of experimental stuff, and we’ve had erably reduce downtime. current Carter County Highway Depart-
equipment that was not time-tested or ment Superintendent and former veteran
proven purchased for us to use, and it “If a machine is sitting in a shop or Tennessee Department of Transportation
just did not hold up. For my city and my awaiting a repair, it’s not available for employee.
tax payers, you have to ask how long it my guys, and we’re not being productive.
And for us, it’s all about productivity,” “It’s hard to get parts for some equip-
Weighing the Benefits
How to Develop Your Total Value Approach
to Bid Evaluation
One of the best ways to evaluate whether a bidder’s equipment and service is
right for you is to define the factors that will add the most value to your agency
before the bid evaluation process begins.
With so many factors to consider, where do you start? Here is a list of items
often included by agencies who evaluate bids based on total value:
u Parts availability, including a comparison analysis of costs per part for
machine and whether or a third-party will be subcontracting parts to you
u Equipment safety features, including sturdier handrails, ergonomic cabs,
extra visibility, rearview cameras
u Dealer location in terms of proximity to your job sites or headquarters
u Dealer’s business hours, including parts, service, rental and access to the yard
u Vendor’s support capability, including number of field technicians, shop technicians,
parts counter sales employees and line items stocked for the machine you are buying
u Service and support history gleaned from friends and peers
u Operator training services, including the types of available training, cost
per student, length of classes and maximum number of students per class
u Technical training services, including cost and length of classes and
maximum number of students per class
u Warranty coverage, including additional services provided by the dealer
beyond the standard manufacturer’s warranty
u Life cycle cost, which can include the machine price, scheduled maintenance,
estimated repairs and potential buy-back or resale values
Often, agencies organize these factors into an evaluation form, assigning
minimum and maximum values, as well as weighing factors to each benefit,
making it even easier to compare bids using a total value approach.
10 TPW July/August 2015
