Key elements of the TM&R contract provided to Volusia County included 5-year / 7,500-hour complete coverage on warranty and service items, a 48-hour downtime clause, performance by certified Ring Power service technicians of all required maintenance, and minimal parts stocking for the customer. 

Commenting on the decision to go with a TM&R contract with Ring Power, Gilmore, said:  “As we worked with Ring Power, we realized this was a great way to get fixed cost and set our annual budget. But the biggest reason this TM&R contract looked so attractive was the 48-hour downtime clause Ring Power incorporated. It said they must supply us with another machine or pay a penalty of a fixed daily cost if our machine is not back up and running in 48 hours.”    

A second life for a big compacter  

In 2005, the 836G was coming out of the TM&R contract with about 9,500 hours of work behind it. Ring Power and Volusia County looked at options for the machine. ”When it comes to front-line equipment, we look to roll the machine before 10,000 hours, usually around 7, 500 hours,” said Gilmore. “What we have found is we can get good residual value from the Cat machines and that we eliminate the potential problems that can occur staying with older machines.”   

Instead of just selling a new machine, Ring Power came in with another equipment investment idea for the customer.  During the process of assessing the condition of the machine and reviewing the success of the TM&R contract, Ring Power developed the option of a second-life machine rebuild backed by another TM&R contract for another 5 years/ 7,500 hours. Volusia County managers made the decision. 

Chris Tomkinson, Ring Power Service Department Manager, explained: “All 836G components were taken off, and the machine was taken down to the bare frame.  All parts were thoroughly inspected and measured against strict reusability guidelines, and all parts down to the wiring and hose routings were overhauled, refurbished or replaced.”   

“On the average, 75% of components of a second-life machine are recycled.  Cat engines and components are designed to be remanufactured to provide multiple life cycles. When parts do not meet Caterpillar reusability standards, they either will be reconditioned to a like-new or replaced with Reman or with new Caterpillar parts,” said Tomkinson. “Add in parts availability, and Ring Power does a 30-day guaranteed turnaround of the machine rebuild.” 

The result is a cost savings of 40 to 60 percent compared to buying a new machine. 

Thirty days after being taken out of service, the 836G was returned to Volusia County landfill and put back in production- backed once again by a 5-year / 7,500-hour TM&R contract. According to Gilmore, the 836G has seen 98% uptime.   

Three lives, and looking at four 

In late 2008, the 836G showed about 17,500 hours on the meter- well past Volusia County’s 10,000-hour threshold and coming to the end of the of its second TM&R contract. Another decision had to be made to buy new or to extend the life of the machine.