Bid vs Existing Contracts – Take Advantage of NJPA Coop Pricing For New Kenworth Trucks
One of the challenges facing many agencies today, as it relates to agencies buying heavy equipment, is the decision to go out to bid. Not only is there a hefty cost for the process, there is compliance and politics not to mention time. All this and you still may not get the equipment you want as quite often “low bid” takes priority over meeting spec.
If you sell this equipment and have worked with municipalities, cities, schools and or state agencies. You have seen the process many times. Pre-bid meetings, specifications that are more specific to one manufacturer than all. Bid openings and awards based off meeting spec and low bid, only to have a commissioner or mayor nix the bid as the bid wasn’t compliant to the agencies purchasing statutes. All of this time, effort and cost to buy a couple pieces of equipment.
The alternative is for these same agencies to find an existing bid to buy from and avoid the bureaucracy altogether. These bids also have some pitfalls in that the trucks might not be exactly what the agency is looking for. However its close enough they will compromise just to avoid the bid process. What if they want to deduct items or add options? If the options are not listed specifically, is compliance going to be an issue? Not to mention those of us that work close to neighboring states where an agency from the neighboring state wants to buy a truck from an agency in another state. Are there interlocal agreements allowing this, can you write them after the fact, all good questions but today there is a simpler answer.
The NJPA, National Joint Powers Alliance, is a national coop with over 50,000 members. Their national contract for the Class 6-8 equipment buyers is available from multiple OEM’s. Pricing is based off a national level not local, in other words pricing is based off hundreds if not thousands of trucks being purchased, versus maybe 1-3 for those that go out to bid. It’s an annual contract with a renewable clause for the next 4 years. Lastly, 51 states have legal authority sanctioning purchases made, utilizing the NJPA contracts, for all government, state, local, education and or non profit agencies.
Of the 13 entities who bid this contract for Class 6-8 chassis and related equipment contract, Kenworth was ranked #1. Pricing, Conformance to Terms & Conditions of the bid, Bidders ability to Sell/Service the contract nationally, Warranty coverages & Selection and variety of Products and Services offered; Kenworth Truck Co was #1 amongst their peers on these individual and priority topics.
What does this all mean? It means that you don’t have to go out to bid. It also means you can now specify and buy any of Kenworth’s models through the NJPA and comply with all of your agency’s procurement requirements. Pricing you will find to be very competitive with the other OEM’s as KW based their pricing at a national fleet level, not that of a 3 truck purchase you would typically go out to bid for individually. In the end, the NJPA offers you the “World”s Best Truck” at the Worlds Best Price. If you would like to find out exactly what this means to your agency, I invite you to give me a call and you can see for yourself what this means for your agency.
KENWORTH SALES CO of SPOKANE