SHREVEPORT, La. (KTAL/KMSS) – The Shreveport City Council has rejected a proposed cost increase on a bid to purchase garbage trucks after the vendor cited supply chain issues as the reason for delivery delays and price hikes.

According to the council record, the city accepted a bid from Hol-Mac Corporation for 18 rear-load garbage vehicles at a cost of $163,000 each in March 2021. Hol-Mac’s was the lowest of the four bids submitted and they quoted delivery dates within 90-120 days after the bid was accepted.

The record continues that not long after the bid was accepted, the city received a letter explaining that production delays pushed the fabrication of the chassis and that they would be shipped to Hol-Mac’s factory between late March and mid-April. Once the chassis arrived, they would begin production on the 18 units requested.

Another letter from Hol-Mac dated March 17, 2022, informed city officials that a seven to eight-month delay on the delivery of the chassis prevented the company from producing the vehicle bodies. The company also explained that the delays meant additional costs for the city, raising the price to $180,611 per vehicle.

The city council voted unanimously to withdraw the motion to pay the increased cost and the city attorney said the company was found to be in default and has asked Hol-Mac to hold up their end of the deal.

In the meantime, the Department of Public Works entered an agreement to lease 10 vehicles in August 2021 at a cost of $70,000 per month.

The City of Shreveport Department of Public Works said they don’t anticipate any issue with continuing to lease vehicles while the city and Hol-Mac come to an agreement.

However, they will have to secure additional trucks at a cost of $8,000 per month, per truck.