Interoffice Memorandum
DATE: April 24, 2025
TO: Mayor Jerry L. Demings and County Commissioners
FROM: Carrie Mathes, CFCM, NIGP-CPP, CPPO, C.P.M., Manager II, Procurement Division
CONTACT: David Gregory, Manager II, Solid Waste Division
PHONE: 407-254-9622
SUBJECT: Approval of Purchase Order M118093, Powertrain Plus Rebuild of an 836K Compactor 87153
ACTION REQUESTED:
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Approval of Purchase Order M118093, Powertrain Plus Rebuild of an 836K Compactor 87153, with Ring Power Corporation, in the total amount of $548,070. [(Utilities Department Solid Waste Division) Procurement Division]
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PROCUREMENT:
This purchase order procures the powertrain plus rebuild of an 836K Compactor 87153, consisting of transport, steam cleaning, and reconditioning of the engine, transmissions, radiator, axle, torque converter, final drives, pumps brake/steering, harnesses, and A/C system. The rebuild is inclusive of a comprehensive powertrain and hydraulic warranty of 60 months or 10,000 operating hours.
FUNDING:
Funding is available in account number 4410-038-1036-6430.
APPROVALS:
The Solid Waste Division concurs with this recommendation.
REMARKS:
The Solid Waste Division utilizes a specialized Caterpillar 836K landfill compactor to manage municipal solid waste material in the Class I landfill, where it helps meet regulatory and performance requirements of Orange County’s landfill permits. This specialized equipment is essential for ensuring the correct compaction of MSW and densities are met. Thus thereby optimizing the landfill's airspace capacity and overall operational efficiency.
In alignment with cost-saving and asset management strategies, the Division recommends rebuilding the existing 836K compactor rather than procuring a new replacement unit. Rebuilding the unit will significantly extend its service life and includes a comprehensive powertrain and hydraulic warranty of 60 months or 10,000 operating hours, providing both performance assurance and long-term value. Note that the additional 10,000 operating hour warranty is consistent with the operating expectations of a brand-new machine.
Price reasonableness for the rebuild has been established through a comparison of a similar rebuild of an 836K compactor, which totaled $595,393 on Purchase Order M114388, issued March 24, 2024. The proposed cost for rebuilding this 836K is $548,070. Additionally, a new 836K compactor is expected to cost $1,764,483 to acquire and the extended warranty is expected to cost $155,892.75 for an estimated total cost of $1,920,375.75. The rebuild provides the County with a cost savings of $1,372,305.75 over a new unit purchase.
This approach supports the Division’s commitment to fiscal responsibility, sustainability, program efficiency, and the responsible management of capital assets. Rebuilding the equipment instead of purchasing new significantly reduces the impacts associated with manufacturing and transporting a new compactor.