Attachment C - Buy Back Method of Award - Pages 1-2.docx
DOCX document 21 KB Posted
- Attached to
- DOTD Buy Back Compact Track Loaders, SM
- Solicitation number
- 3000026782
- Issued by
- East Baton Rouge Parish, Louisiana
About this file
This attachment outlines the Buy Back Method of Award for RFx number 3000026782, a compact track loader procurement managed jointly by the Louisiana Division of Administration's Office of State Procurement and the Department of Transportation and Development. The solicitation seeks qualified bidders to provide compact track loaders with preventive maintenance included, with award made to the lowest responsive and responsible bidder based on a calculated one-year and one-day total cost formula. The contract term runs for one year and one day from the equipment's original delivery date, at which point bidders must provide a guaranteed repurchase price for the equipment.
The award methodology employs a total cost calculation formula that accounts for the initial purchase price, equipment depreciation or appreciation based on the guaranteed buy back repurchase price, and lost earnings derived from financing costs. The interest rate component combines the Federal Reserve's Prime Rate as of July 1, 2026 (6.75%) with the annualized inflation rate calculated using the Consumer Price Index for Urban consumers in the South Region, resulting in a blended rate of 9.94% for the evaluation period. Bidders must quote both an initial purchase price and a guaranteed repurchase price one year and one day from delivery to be considered responsive, with the total cost inclusive of the depreciation differential and associated financing charges determining the winner.
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Other files
| File | Type | Posted |
|---|---|---|
| Attachment E - Price Sheet - Page 1.xlsx | XLSX spreadsheet | |
| Attachment A - Special Terms and Conditions - Pages 1-12.docx | DOCX document | |
| Attachment D - Specifications - Eq Spec 815-000A Rev. 8.26.26 -.pdf | ||
| Attachment F - Online Bidding Instructions - Pages 1-10.docx | DOCX document | |
| 3000026782.pdf | ||
| Attachment B - Buy Back Terms and Conditions - Pages 1-2.docx | DOCX document |
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Text version
Attachment C
RFx number: 3000026782 DOTD Buy Back – Compact Track Loader, Small
Buy Back Method of Award
The Division of Administration, Office of State Procurement, with the Department of Transportation and Development will use the method of award as specified below:
Buy Back Purchase Price:
Award shall be made to the lowest responsive, responsible bidder with preventive maintenance included (that bidder who first satisfies all requirements and specifications presented in the bid solicitation, and second-quotes the lowest calculated total one 1 year and 1 day cost in accordance with the award formula below).
Guaranteed Buy Back Repurchase Price:
Each bidder must include its guaranteed repurchase price of the equipment quoted 1 year and 1 day from its original delivery date, to be considered responsive.
Award Formula:
Award prices will be calculated with the following formula: TC = P + (D or A) + LE
Where:
· TC is the total one-year cost including purchase price (P), depreciation (D) or appreciation (A), and potential lost earnings.
· P is the initial purchase price.
· BB is the guaranteed buy back repurchase.
· D is the depreciation, or positive difference, after subtracting the buy back repurchase price from the initial purchase price.
· A is the appreciation, or negative difference, after subtracting the buy back repurchase price from the initial purchase price.
· $I is the difference between the vendor’s bid and the lowest responsive bid.
· IR (Interest Rate) is the cost of money charge. IR is the sum of the current Prime Rate & Inflation Rate for the 12 months ending July of current year.
The Prime Rate used in the Buy Back Award Formula is the monthly rate published by the Federal Open Market Committee (FOMC) in effect for July 1st of the given state fiscal year.
Inflation is the annualized percentage change of the Consumer Price Index (CPI), over time. It is calculated by using the Consumer Price Index – Urban (CPI-U), South Region, in effect on July 1st of the given state fiscal year. The CPI-U is published monthly by the Bureau of Labor Statistics: https://www.bls.gov/regions/southeast/news-release/consumerpriceindex_south.htm Inflation Rate = [((Current Period CPI-U) – (Prior Period CPI-U)) / Prior Period CPI-U] * 100
Prime Rate (July 1, 2026) = 6.75% CPI-U (July 1, 2026) = 322.280 CPI-U (July 1, 2025) = 312.330
IR = 6.75% + [% = 6.75% + 3.19% = 9.94%
· LE is lost earnings, derived from multiplying the dollar increase ($I) by the interest rate (IR).
LE = $I x IR
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