Louisiana City Refuses Company's Request For Higher Price on Refuse Trucks

The Shreveport, Louisiana, City Council unanimously voted to reject a proposed cost increase on a bid to purchase new refuse trucks.

In March 2021, Hol-Mac Corporation was issued a purchase order of $2.9 million for 18 rear loader packers with a $163,000 per-unit price. According to documents presented to the city council, the company notified the city there was a delay in the delivery of the trucks by up to three months due to the global supply chain crisis. In March 2022, the city was notified of another delay and a unit price increase of approximately $17,000, bringing the price to $180,611 per truck. A resolution dated April 12 states that the city agreed to the price. However, at its May 10 meeting, the city council unanimously voted to withdraw this resolution.

KTAL reported the city attorney said the company was found to be in default; the attorney has asked Hol-Mac to stick to its initial unit price of $163,000.

Shreveport is in dire need of new refuse trucks. The city has been renting garbage trucks that cost approximately $70,000 per month since July 2021. The city reports the availability of those trucks is not guaranteed, as they are being purchased upon termination of the rental agreement by other entities.

The city also advertised and received bids for an additional 15 garbage trucks in March 2022, using the exact same specifications as previous year. Hol-Mac was the lowest bidder, but it had increased its unit price to $254,800.