Vehicle Destruction Services and Sale of Vehicle Scrap

Scope of Work Template
SOLICITATION NO. IFQ 7800 HAW1002
Description: Vehicle Destruction Services and Sale of Vehicle Scrap
1. PURPOSE
The City of Austin (City) seeks to establish a contract with a qualified Contractor to provide Vehicle
Destruction Services and Sale of Vehicle Scrap for City vehicles on an as needed basis. This includes all
City owned vehicles including Emergency units such as Fire, EMS and Police vehicles, as well as Refuse
and Dump Trucks, and other large vehicles. This is a revenue-generating contract. The City authorizes a
qualified Contractor to collect and purchase scrap metal from decommissioned City vehicles. In exchange
for this right, the Contractor pays the City for all scrap materials collected based on the rate structure set
forth in this Scope of Work, while the City separately pays the Contractor for vehicle destruction and
disposal services. The Contract will be utilized by the City's Fleet Mobility Services Department.
2. TERM OF CONTRACT
This Contract shall remain in effect for an initial term of twelve (12) months or the City terminates the
Contract. This Contract may be extended beyond the initial term for up to two (2) additional 12-month
periods at the City's sole option.
3. DEFINITIONS
3.1 Engine Destruction means making a 3-inch or larger hole in the engine block on both sides of the
engine with the holes being in or near the middle and not on a removable plate, or by complete
crushing of the engine.
3.2 Chassis Destruction means that the chassis is disabled by cutting both frame rails completely in
half, or by complete crushing of the frame.
3.3 Salvage means to remove every single usable part from the vehicle, to include any and all hardware,
tires, wiring, exterior and interior panels, and lighting for repurposing to sell to other buyers.
3.4 Complete crushing means completely crushing the engine, frame or the entire vehicle using a car
crusher machine.
4. CONTRACTOR QUALIFICATIONS
4.1 The Contractor shall have a minimum of three (3) consecutive years of experience providing vehicle
salvage services including vehicle engine and chassis destruction and sale of vehicle scrap within the
last five (5) years to municipalities or organizations similar in size and scope to the City.
4.2 The Contractor shall have and operate a full-time vehicle salvage facility that is equipped with all
tools, equipment, and supplies necessary to provide vehicle destruction and salvage services for the
specified vehicles and equipment. The salvage facility shall be located within ninety (90) miles of the
Texas State Capitol with the ability to be reached by email and telephone.
4.3 The Contractor shall maintain a storage area that is reasonably secure from vandalism or theft for all
City vehicles/equipment in the Contractor's possession.
4.4 Comply with all Federal, State, and local codes, rules, and regulations concerning safety and
environmental requirements.
4.4.1 The Contractor shall certify, upon award, that it holds all required federal, state, and local
licenses, permits, and certifications necessary to operate a vehicle salvage and destruction
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facility, including any environmental permits required for the handling and disposal of
hazardous materials. Copies of all required permits shall be provided to the City upon
request and maintained throughout the term of this Contract.
5. CONTRACTOR'S RESPONSIBILITIES
5.1 The Contractor shall provide all labor, parts, equipment, materials, tools, supervision, and
transportation required to perform the services described herein.
5.2 The Contractor shall perform all destruction or salvage services on the Contractor's premises.
5.3 The Contractor shall provide a point of contact for receiving orders from the City. A designated City
representative will contact the Contractor by email or telephone to schedule the pickup of a City
vehicle for destruction or salvage purposes.
5.4 For each request for vehicle destruction, the Contractor shall provide a written report that provides
documentation of the destruction of the vehicle. The report shall be sent to the authorized City
representative within 24 hours of destruction. The report shall include:
5.4.1 Date of destruction
5.4.2 Vehicle make, model and VIN
5.4.3 Color photos of the engine block with 3 inch or larger, non-repairable holes where the entire
engine appears in the photo, or of the entire vehicle after crushing
5.4.4 Color photos of the frame rails cut in half, or of the entire vehicle after crushing
5.5 The Contractor understands that certain vehicles shall not have vehicle destruction activities
performed on them without a City representative present. The City will identify those units prior to
contractor's pick up of the unit.
5.6 The Contractor shall purchase all vehicle scrap for salvage from the City's vehicles. Total scrap
value shall be calculated using a fixed rate per unit (per ton or per pound, as specified in the
Contract and agreed upon by the parties at the time of award), regardless of market fluctuations.
Scrap value shall be applied as a credit to the City and may be deducted from invoices for
destruction services. The Contractor shall clearly show the credit amount and the calculation on
each invoice. If credits exceed service charges for the billing period, the Contractor shall remit the
net amount to the City within 30 calendar days of the last day of the applicable Accounting Period.
5.6.1 The Contractor shall provide supporting documentation with each invoice, including (a) the
make, model and VIN of the unit; (b) date of scrap collection; (c) net weight of scrap per
vehicle; (d) unit scrap rate applied; and (e) invoice number.
5.6.2 Rates are fixed for the first twelve (12) months. After that, either party may request a rate
review by submitting a written request before the contract anniversary date. Any
adjustment must be supported by local market pricing and verifiable third-party
documentation. Approved adjustments take effect at the start of the next renewal period.
5.8 Invoices shall list each engine and frame destruction charge, or crushing charge, and shall include
a final total. Credit for the sale of the salvage materials may be deducted from the total vehicle
destruction charge on the invoice if the sale is listed on the invoice as described in 4.7 above.
5.9 The Contractor shall pick up all vehicles from the City's designated location(s) within 72 hours of
notification by the City. Prior to pickup, the Fleet Mobility Services department designee will identify
the vehicle by make, model and year manufactured and will describe the services needed per the
contract requirements, and coordinate with the Contractor a timeframe for pickup from the City's
premises. The Contractor shall complete all requested destruction or salvage services within 5
business days of vehicle pickup, unless otherwise agreed upon in writing by the City Contract
Manager.
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5.9.1 The Contractor shall complete all requested destruction or salvage services within X
business days of vehicle pickup, unless otherwise agreed upon in writing by the City
Contract Manager.
5.10 The scope of services under this Contract includes electric vehicles (EVs), compressed natural
gas (CNG) vehicles, and liquid petroleum gas (LPG) vehicles. For electric vehicles, the Contractor
shall safely remove, handle, and recycle or dispose of high-voltage battery packs and associated
components in accordance with all applicable federal, state, and local regulations. For CNG and
LPG vehicles, the Contractor shall safely purge and dispose of any remaining fuel and shall
properly handle, remove, and dispose of fuel storage tanks in accordance with all applicable
regulations. All alternative fuel vehicle services shall be itemized separately on invoices.
5.11 The City may audit the Contractor's revenue records to verify accurate reporting and payment.
The Contractor must keep books, receipts, weight tickets, and supporting documents for the
duration of the contract. The City will provide reasonable written notice before conducting an audit.
5.12 The City's option to extend this Contract beyond the initial term is conditioned on the Contractor's
satisfactory performance, including: (a) timely remittance of all net amounts due to the City; (b)
compliance with all reporting requirements; (c) absence of material audit findings not remediated
within the required timeframe; (d) maintenance of all required environmental permits and licenses;
(e) compliance with weight verification requirements; and (f) compliance with all applicable
federal, state, and local laws. Extensions shall not be granted on the basis of elapsed time alone.
5.13 Any requirements or services that have been omitted from this scope of work that are clearly
necessary or in conformance shall be considered a requirement although not directly specified or
called for in the scope of work.
6 CITY'S RESPONSIBILITIES
6.1 The City will work to ensure that all vehicles are drained of all fluids, including gasoline, antifreeze,
oil and other lubricants and assure all vehicles are free of trash. However, there may be times when
these materials are not able to be cleared of the vehicle at the time the vehicle is delivered to the
Contractor's premises. If such time occurs, the vendor may charge the City a fee for disposal of
trash or hazardous materials, as described on the Bid Sheet.
6.1.1 The whole vehicle in operating condition, including both sides of the vehicle, with frame and
cab appearing in the photo before the unit is delivered to the Contractor.
6.2 The City shall take photos in the following manner:
6.2.1 The whole vehicle in operating condition, including both sides of the vehicle, with frame
and cab appearing in the photo before Contractor picks up the unit.
6.2.2 The engine block in operating condition, all sides of the engine, with cab appearing in the
photo.
6.3 The City shall provide the Contractor with a copy of the "Non-repairable Vehicle Title" (Texas
DMV Form VTR-441) after documented destruction has been confirmed, including receipt of the
required photographs per Section 4.5. Title shall not transfer prior to the City's receipt and review
of the destruction report.
6.4 The City shall identify those units that will require a City representative on site during the
destruction process prior to the vehicle destruction.
7. COMPENSATION, INVOICE AND PAYMENT REQUIREMENTS
7.1 Compensation and payments under this Contract shall be based on the rates submitted by the
Contractor in its Quote Sheet, as accepted by the City at the time of award and incorporated herein
by reference. All applicable service charges owed by the City and scrap purchase payments owed
by the Contractor to the City are set forth in the Quote Sheet. Any compensation beyond those
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agreed-upon rates shall require a written amendment to this Contract.
7.2 The City's preference is to have invoices emailed to COAFleetAP@austintexas.gov or mailed to
the below address:
City of Austin
Department Fleet Mobility Services
Attn: Accounts Payable
Address 1190 Hargrave St
City, State, Zip Code Austin, Texas 78702
For questions regarding your invoice/payment please contact the City Contract Manager.
7.3 The Contractor shall pay all monies due to the City for services described herein within 30 calendar
days after the last day of the Accounting Period. Contractor shall make payment via Electronic Fund
Transfer.
7.3.1 The City will provide Contractor with banking information upon award of a Contract.
Alternatively, with City approval, a monthly check in the monthly amount due to the City shall be
made payable to "City of Austin," and shall be sent to an address provided by the City after
contract execution.
8. Designation of Key Personnel
The City and the Contractor resolve to keep the same key personnel assigned to this engagement
throughout its term. In the event that it becomes necessary for the Contractor to replace any key
personnel, the replacement will be an individual having equivalent experience and competence in
executing projects such as the one described herein. Additionally, the Contractor shall promptly notify
the City and obtain approval for the replacement. Such approval shall not be unreasonably withheld.
The Contractor's and City's key personnel are identified as follows:
Name/ Title Phone Number Email Address
City Contract Manager Virginia Soto- (512)974-2629 Virginia.soto-
Reynolds reynolds@austintexas.gov
City Project Manager Joey Jenkins (512) 978-2639 Joseph.Jenkins@austintexas.gov
City Contract Alfonso Drayton (512) 978-2298
Administrator, Alfonso.Drayton@austintexas.gov
Procurement Specialist
Contractor's Key
Personnel
Contractor's Key
Personnel
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