According to Allred, the decision to spend more was justified for myriad reasons. Despite not meeting his specifications, Allred allowed companies to bid on the sale with the specifications they provided.

Allred said the specs of some bids didn’t match his requirements, the warranty lengths and costs, lift capacities, equipment sizes or resale value. Thompson’s equipment, which is all Caterpillar brand, matches the department’s existing attachments.

While the lowest bids came in at $375,742 less in total cost, Allred said that the cost savings did not outweigh the benefits for the county. He likened the purchase to building supplies for homebuilding and repair, noting that an individual can buy cheaper cuts of lumber or particle board over the more expensive options, but that will cost more in the long-run in repairs and maintenance.

“We have attachments that we have for these machines that we won’t have to go back and purchase,” said District 1 Supervisor George Rutledge, who worked alongside Allred to grade the bids.

The warranty offered by Thompson went up to seven years, while the other companies only provided only three years. Allred said most of the equipment was already in stock and should be delivered quickly once he provides the company with a purchase order.

Although most often municipal officials will accept the lowest bids when making large purchases, state law provides avenues for purchasing equipment and cementing contracts that may represent a better use of the taxpayers’ money, even if those bids are higher. State law requires officials to select the “lowest and best” bidder. The county must make a detailed explanation of their decision process on who that company or person is with each bid.

Allred contends the county can make decisions based on resale value and past business with a company through opinions from the Mississippi Attorney General’s office and state law. Allred also said the resale value of the Caterpillar equipment after five years is much higher than the equipment from the other bids, including John Deere and Komatsu.

In J&A Excavation Inc. v. City of Ellisville, the State Court of Appeals, ruled that a county or municipality can determine the “lowest and best bid” on factors other than the price, including the bidder’s skill, business judgement and experience, as long as the board’s minutes including “detailed calculations and a narrative summary showing” why they determined the lowest and best bid that was not the lowest provided.

Allred previously worked at Thompson Machinery, but he said he has not had connections with the business in over two decades, with most of his former coworkers and colleagues having retired or died over the years.

Most of the existing equipment will be sold to the public in an online auction, Allred said, noting that he expects that auction to take place next March. The equipment should net between $250,000 and $300,000, which will go back to the department. The existing equipment, he said, was purchased between 2006 and 2010 and needs replacing. 

(c)2024 the Northeast Mississippi Daily Journal (Tupelo, Miss.)
Visit the Northeast Mississippi Daily Journal (Tupelo, Miss.) at www.djournal.com.
Distributed by Tribune Content Agency, LLC.