Paradise has to retender trucks after seller ups the price

By Mark Squibb/February 10, 2022

A previous decision to buy seven new vehicles had to come back to the council chamber for reconsideration last week after Hickman Motors informed the town it cannot honour the original quoted price due to supply chain shortages.

Councilor Patrick Martin explained the Town had budgeted in 2021 for the purchase of six light duty trucks and one heavy duty vehicle under a government purchasing standing offer. The total cost, at the time, was approximately $276,000. But on January 12, Hickman Motors notified all participants in the government’s standing offer that due to supply chain shortages caused by the pandemic, GMC would be significantly reducing production.

“With reduction, they are unable to honor the price provided under the recent GPA standing offer,” said Martin. “Revised quotes that were submitted cost an additional $88,000.”

Martin said that should the town wish to purchase the trucks at the new, increased price, council would have to rescind the previous motion, and make a new one to accommodate the increase.

“Based on the information provided by Hickman Motors and on public knowledge of the global pandemic, the price for all units may increase with a new tender,” warned Martin, admitting the situation is unfortunate.

Council then unanimously rescinded the previous purchase motion and voted to retender the trucks.

Councilor Glenn Carew said that while it was unfortunate the costs had increased due to the shortage, it was important to obtain the vehicles in a timely fashion.

“I’m not on that committee, but I sat in on that meeting, and we talked about that,” said Carew. “It’s unfortunate, and it’s going to result in a higher cost to the town, but that’s kind of all we can do at this point.”

Mayor Dan Bobbett then agreed with Carew’s assessment.

“There’s significant shortages, like you said, throughout the world, so that’s the cost of doing business and in this case it’s unfortunate,” said Bobbett.

Martin added that he is hopeful the new quotes won’t be much higher than the previous ones.

“Hopefully it won’t be too much higher,” said Martin. “It could even be the same price. We’re unsure what could happen at this point when we go out to tender. We could get some more competition. But councilor Carew is right, it’s unfortunate, but it’s the reality we’re dealing with now in the world.”