Agenda Item AGENDA STAFF REPORT ASR Control 25-000374
MEETING DATE:	05/20/25
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	OC Waste & Recycling (Approved)
Department contact person(s):	Tom Koutroulis (714) 834-4122
	Julian Sabri (714) 834-7080

Subject: Approve Contract for Heavy Equipment Certified Powertrain Rebuilds

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $3,532,100

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Fund 299: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 10/31/2023 #16

RECOMMENDED ACTION(S):

Authorize the County Procurement Officer or Deputized designee to execute the contract with Quinn Company for certified powertrain rebuilds on heavy equipment, effective upon approval by the Board of Supervisors and execution of all necessary signatures through April 14, 2027, in the amount not to exceed $3,532,100.

Pursuant to Contract Policy Manual Section §3.3-113 authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the total Contract amount for the first year of the contract, for the entire term of the Contract, within the scope of work set forth in the Contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

Authorize the County Procurement Officer or Deputized designee to make future ministerial or non-material changes to the contract.

SUMMARY:

Approval of the contract with Quinn Company for certified powertrain and machine rebuilds on heavy equipment will keep critical core equipment in optimal working condition and increase e serviceable life ensuring continuous support of the daily solid waste disposal operations at Orange County’s active landfills.

BACKGROUND INFORMATION:

OC Waste & Recycling (OCWR) is responsible for managing Orange County's (County) solid waste disposal system, which consists of three active regional landfill operations, 20 closed solid waste disposal sites and four household hazardous waste collection centers. OCWR owns and operates a fleet of heavy equipment necessary to operate the County's active landfills and maintain the County's closed disposal sites. Within the heavy equipment fleet, core equipment is comprised of trash and dirt dozers, compactors, scrapers, wheel loaders and wheel dozers. Core heavy equipment is directly involved in the daily solid waste disposal at the County’s landfills. Due to the harsh unpredictability of the trash environment, planned certified powertrain and machine rebuilds are critical in protecting the County’s investment by extending the serviceable life and reducing potential unplanned downtime.

On August 10, 2018, the County Procurement Office issued a memo identifying Sourcewell as an approved cooperative agreement for use by County agencies. Sourcewell issued cooperative contract #011723-CAT with Caterpillar, Inc. (Sourcewell Contract), effective May 24, 2023, through April 14, 2027. Quinn Company is an authorized Caterpillar, Inc. (CAT) Dealer with the authority to extend the terms, conditions and pricing of the Sourcewell Contract. The powertrain rebuilds are available through Sourcewell and OCWR proceeded to obtain quotes from Quinn Company for the rebuilds. Utilizing Sourcewell provides discounted pricing and pre-negotiated terms and conditions, with the ability to negotiate directly with the vendor and modify terms and conditions as necessary to reduce risk to the County.

On October 31, 2023, the Board of Supervisors (Board) approved Contract CT-299-24010110 for certified powertrain rebuild services for OCWR’s heavy equipment fleet with a not-to-exceed amount of $4,344,048.30. Under this existing contract, five trash dozers and three compactors successfully received certified powertrain rebuilds to extend their operational lifespan and ensure continued equipment reliability in support of OCWR’s landfill operations.

Approval of the Contract with Quinn Company for certified powertrain and machine rebuilds on heavy equipment will keep critical core equipment in optimal working condition and increase the serviceable life ensuring continuous support of the daily solid waste disposal operations at Orange County’s active landfills.

OCWR is requesting approval of a 10 percent contingency contract cost increase in the event of unanticipated additional work being required. The quotes provided by Quinn Company are for standard certified powertrain and machine rebuild pricing. Not until parts are removed from the machines and completely disassembled will mechanics be able to accurately assess the parts to be replaced or salvaged and determine the required machining labor necessary to complete the rebuilds. Allowing the use of a 10 percent contingency of the contract amount will allow services to continue when issues arise and expedite the rebuilds with as little impact on OCWR’s fleet as possible. No increases to contract funds will be allowed without detailed documentation, including itemized quotes for additional work and justification by CAT certified mechanics. OCWR will thoroughly review the documentation, validate, verify and authorize any additional work in writing before any extra work commences.

The Orange County Preference Policy (OCPP) is not applicable to this contract award as this contract is a subordinate to the Sourcewell Cooperative Agreement.

The contractor’s performance has been confirmed as satisfactory. OCWR has verified there are no concerns that must be addressed with respect to contractor’s ownership/name, litigation status or conflicts with County interests.

This Contract does not currently include subcontractors or pass through to other contractors. See Attachment B for Contract Summary Form.

CEQA Compliance: The proposed action is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301 of the CEQA Guidelines, since Class 1 (Existing Facilities) provides for the exemption of the operation, repair, maintenance, permitting, leasing, licensing or minor alteration of existing public or private structures, facilities, mechanical equipment, involving negligible or no expansion of use. The proposed action is also Categorically Exempt (Class 2) from the provisions of CEQA pursuant to Section 15302 of the CEQA Guidelines, since Class 2 (Replacement or Reconstruction), provides for the exemption of replacement or reconstruction of existing structures and facilities on the same site which will have substantially the same purpose and capacity as the structure replaced. The proposed action will allow for the approval of a contract for repair and replacement of powertrains for existing landfill heavy equipment, which will continue to operate at the landfill sites, will be used for the same purpose and capacity as existing equipment, and will involve negligible or no expansion of use, which is consistent with a Class 1 and Class 2 Categorical Exemption determination. The existing Categorical Exemption continues to be valid for the proposed action.

FINANCIAL IMPACT:

Appropriations for this contract are included in the FY 2024-25 Budget for OC Waste & Recycling Enterprise Fund 299.

The proposed contract is contingent upon funding availability. In the event funding is reduced or terminated, the County may renegotiate the level of services and/or terminate the contract, as necessary.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Contract CT-299-25010868 Quinn Company Powertrain Rebuilds
Attachment B – Contract Summary Form