41-2554

41-2554. Procurement of earth moving, material
handling, road maintenance and construction equipment;
definitions

A. Notwithstanding the criteria for contract award prescribed in section 41-2533, a
contract for earth moving, material handling, road maintenance and construction equipment
shall be awarded to the lowest responsible and responsive bidder whose bid conforms in
all material respects to the requirements and criteria set forth in the invitation for
bids, which shall include as price evaluation criteria the total life cycle cost
including residual value of the earth moving, material handling, road maintenance and
construction equipment and such other additional evaluation factors set forth in the
invitation for bids. No factors or criteria may be used in the evaluation of bids for
earth moving, material handling, road maintenance and construction equipment, other than
those specified in the invitation for bid. Additional evaluation factors shall include,
to the extent practicable, outright purchase. The contract award shall be based on the
price evaluation criteria deemed by the state to be most advantageous to the
state. Procedures for awarding contracts for earth moving, material handling, road
maintenance and construction equipment pursuant to this subsection shall be the same as
those prescribed in section 41-2533.

B. Notwithstanding the criteria for contract award prescribed in section 41-2534, a
contract for earth moving, material handling, road maintenance and construction equipment
shall be awarded to the responsible offeror whose proposal is determined in writing to be
the most advantageous to the state. The evaluation factors set forth in the request for
proposals shall include the total life cycle cost including residual value of each
proposal and such other additional evaluation factors set forth in the request for
proposals. No factors or criteria may be used in the evaluation of proposals for earth
moving, material handling, road maintenance and construction equipment, other than those
specified in the request for proposal. Additional evaluation factors set forth in the
request for proposal shall include, to the extent practicable, outright purchase. The
contract award shall be based on the price evaluation criteria deemed by the state to be
most advantageous to the state. Procedures for awarding contracts for earth moving,
material handling, road maintenance and construction equipment pursuant to this
subsection shall be the same as those prescribed in section 41-2534.

C. The minimum unit list price for earth moving, material handling, road
maintenance and construction equipment shall be adjusted annually by the consumer price
index, United States average.

D. As used in this section:

1. "Earth moving, material handling, road maintenance, and construction equipment"
means a track-type tractor, motor grader, excavator, landfill compactor, wheel tractor
scraper, off-highway truck, wheel loader or track loader, having a published
manufacturer's minimum unit list price of fifty thousand dollars or more and a minimum
expected life cycle of three years.

2. "Outright purchase" means the initial cost to the state for the earth moving,
material handling, road maintenance, and construction equipment, including all vendor
charges and financing costs.

3. "Residual value" means the guaranteed minimum market value of the earth moving,
material handling, road maintenance and construction equipment at the end of the life
cycle of the earth moving, material handling, road maintenance and construction equipment
being procured, as determined by a guaranteed minimum value offered by the vendor or
other parties in its bid.

4. "Total life cycle cost" means total state costs and financing costs through the
life cycle of the earth moving, material handling, road maintenance and construction
equipment being purchased less residual value.

5. "Total state costs" means cost to the state for the earth moving, material
handling, road maintenance and construction equipment including repair costs, present
value of monies, vendor charges, and all other identifiable state costs that may be
incurred.

6. "Vendor charges" means costs of all vendor support, materials, transportation
and all other identifiable costs associated with the vendor's proposal or bid.

7. "Vendor support" means services provided by the vendor for items such as
consulting, education and training.