HomeMy WebLinkAboutItem 8.4 PurchFireEngFireSt16 CITY CLERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 28, 2004
SUBJECT: Request for Waiver of Competitive Bid Process and Authorize Staff
to Purchase One (1) Fire Engine for Fire Station 16
Report Prepared by Joni Pattillo, Assistant City Manager
ATTACHMENTS: 1. Resolution Waiving the Competitive Bid Process
2. Letter from Golden State Fire Apparatus, Inc.
RECOMMENDATION: ~)u~ Adopt resolution authorizing waiver of competitive bid and purchase
of one (1) Fire Engine for Fire Station 16.
FINANCIAL STATEMENT: The funds required for the proposed fire engine and associated
equipment have been accumulated in the Internal Service Fund
reserve and are included in the Internal Service Fund Fiscal 2004-
2005 budget. The pricing schedule listed below remains in place
until July 8; 2004. Golden State Fire Apparatus, Inc. is offering a
prepayment discount of four (4) percent on the Fire Engine.
Description Pricing Schedule 1~ Pricing Schedule which Additional Savings
1~ includes the prepayment from prepayment
I discount of 4 %
One (1) Pierce Quantum Triple $379,956.87 ~ $379,956.87 -0-
Combination Pumper Type 1
Engine
Multiple Unit Discount (9,788.03) ~ (9,788.03) -0-
100% Pre-Payment Discount N/A ~ (15,570.00) $15,570
Adjusted Contract Amount 370,168.84 ~ 354,598.84
8.25% State of California sales tax 30,538.92 ~ $29,254.40 $1,284.52
Total Purchase Price for (1) Type 1 $400,707.76 ~ *383,853.24 $16,854.52
Engine~ ~ ~~ ~
Associated Engine Equipment * $140,000 ~ ' $140,000 -0-
8.25% State of California sales tax $11,550 ~ $11,550 -0-
Total Purchase Price for $151,550 ~ ~151,550 -0-
Associated Engine Equipment · . ~ ......... ~ ~ ¢~~~~
Grand Total $552,257.76 ~ $535,403.24 $16,854.52
· The assOciated equipment will be purchased by Alameda County Fire utilizing its purchasing
agreement and the City will reimburse Alameda County Fire as it has been done in previous transactions.
COPIES TO:
ITEM NO.
H/cc-forms/agdastmt. doc
DESCRIPTION:
The new triple combination pumper will be replacing a 1991 Pierce engine currently in service at Fire
Station 16 (Donohue). The 1991 engine has served as a first line engine for close to 14 years. Since 1998,
this engine has been out of service 106 days due to mechanical issues and has resulted in repair costs
exceeding $30,000 dollars. The 1991 engine will be placed in reserve status and is anticipated to operate
in that capacity for several years. The existing reserve engine is a 1984 Pierce and has been in service for
twenty years. This engine is experiencing frequent mechanical issues when in use and has met the
anticipated 20 year maximum service life expectancy of an engine. It is recommended that the 1984
Pierce engine be taken out of service.
Dublin currently owns a complement of apparatus, which operates out of three stations. The following is
an overview of the current complement of apparatus.
Station 16-Donohue Station 17-Emerald Glen Station 18-Fallon
1- Type i Engine 1- Type 1 Engine 1-Type 1 Engine
1- Type 4 Patrol 1- Ladder Truck 1 ~ Type 4 Patrol
1- Type 1 Reserve Engine 1- Type 3 Engine
Request for Waiver of Competitive Bid: In most cases, the City's Purchasing Ordinance requires that
major purchases be subject to the competitive bid process. However, there are exceptions to the bidding
requirement which have been incorporated into the Dublin Municipal Code §2.36.050(a)(10), which
provides:
"When another public agency has administered a competitive bidding process within the past two
years for the same or substantially similar supplies, services or equipment."
The City has an opporttmity to purchase the proposed engine at considerable savings by taking advantage
of Alameda County Fire Department Pricing from a January 2004 Request for Quote (RFQ) number
10084/CB/03 for the purchase of five (5) Triple Combination Pumper Fire Apparatus as well as the
prepayment discount. Golden State Fire Apparatus was the only qualified respondent to the RFQ process.
The County and the City of San Leandro are planning to purchase a total of four (4) engines, which in turn
has allowed for the development of a pricing Structure that is significantly lower than the City would
realize if it went out to bid on the same engine. In addition, using the same specifications as the County
and City of San Leandro will provide for standardization of emergency equipment and provide operational
consistency for the personnel operating and servicing the apparatus.
This type and model of fire engine was purchased most recently by the City of Dublin in 2002 and is
currently in service at Fire Station 18 (Fallon). The Pierce Quantum engine has proven to be a dependable
and well functioning piece of equipment for the City. Since the purchase of this apparatus, there have
been no major mechanical breakdowns, and the engine has provided excellent performance,
compartmentation and maneuverability. This apparatus continues to perform well and is meeting the
emergency response needs of the City.
RECOMMENDATION:
Staff recommends that the Council adopt resolution authorizing waiver of competitive bid and purchase of
one (1) Fire Engine for Fire Station 16.
RESOLUTION NO. - 04
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING WAIVER OF COMPETITIVE BID AND AUTHORIZING STAFF TO
PURCHASE ONE (1) PIERCE QUANTUM TRIPLE COMBINATION PUMPER TYPE 1
ENGINE FROM GOLDEN STATE FIRE APPARATUS, INC.
WHEREAS, §2.36.050(a)(10) of the Dublin Municipal Code provides that the competitive bid
process shall not apply when another public agency has administered a competitive bidding process within
the past two years for the same or substantially similar supplies, services or equipment; and
WHEREAS, Staff requested that the City Council authorize this purchase to this exemption; and
WHEREAS, in order to have the first line Fire Engine replaced at Fire Station 16, the City
Council recognizes that the City will be utilizing the Pricing Schedule allowed through the use of the
Request for Quote (RFQ) number 10084/CB/03 for the Pierce Quantum Triple Combination Pumper Type
1 Engine that Golden State Fire Apparatus afforded to Alameda County Fire Department to save time and
realize savings; and
WHEREAS, the ordering deadline for obtaining the equipment is July 8, 2004 in order to receive
the pricing schedule and the prepayment discount on the Pierce Quantum Triple Combination Pumper
Type 1 Engine.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
specifically waive the competitive bid process pursuant to Dublin Municipal Code §2.36.050(a)(10) and
authorizes Staff to purchase one (1) Pierce Quantum Triple Combination Pumper Type 1 at a price not to
exceed $383,853.24.
PASSED, APPROVED AND ADOPTED this 28th day of June, 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
A1-FACHMENT 1
May 10, 2004
Mr. Melbourne Go, Buyer / Contracts Division
GENERAL SERVICES AGENCY
Purchasing Department
1401 Lakeside Drive, Suite 907
Oakland, California 94612
RE: RFQ No. 10084/CB/03 for Triple Combination Pumper Fire Apparatus
Dear Mr. Go,
It was a pleasure to meet you this morning and we are looking forward to
working with you and the Alameda County Fire Department on this most valuable
order.
Below and attached please find the information that you requested. There
are a number of different issues that I review below, but please keep in mind
what I believe is the most important issue. That is how the purchase orders
are submitted to Pierce. We need to get the PO (or PO's from different
agencies) at one time on this first go around of three units. This is so that the
job's can be booked and built in sequence together. That way Pierce can realize
the manufacturing efficiencies and so that we can make one inspection trip for
three (3) units. The manufacturing efficiencies and the savings on the
inspection trips is what allowed us to provide you with the "multiple unit
discount". If I understood Chief Sheldon correctly, the County would be
ordering two (1) and San Leandro would be ordering one (1) prior to the end of
this month.
The same issue would apply later in the year, if we can get Dublin and
San Leandro to submit their PO's at the same time that would be great. If that is
not possible, we'll continue to offer the five (5) unit pricing. But any assistance
that can be provided to us would be greatly appreciated. Aisc please note that
all purchase orders should be made out to:
Pierce Manufacturing Inc.
2600 American Drive
Appleton, Wisconsin 54914
ATTACHMENT 2
UPDATE ON PRICING
There are two key elements that need to be documented based on the bid we
submitted for RFQ No. 10084/CB/03 on January 8, 2004:
1) Pierce Manufacturing Inc. will wave the metal surcharge, which becomes
effective June 1., 2004 if a contract or purchase order is not received.
Notification explaining this issue was sent to Mr. Melbourne Go on April
19, 2004.
2) Pierce Manufacturing Inc. will extend the pricing of RFQ No. 10084/CB/03
for a period of six (6) months from the date shown above. This includes
extending the multiple unit discount, 100% pre-payment discount, and
waiving of the metal surcharge.
Although you are looking at purchasing three (3) units prior to May 31,2004 and
two (2) additional units prior to the six-month deadline, we are offering you the
same pricing if you were purchasing five (5) units at the same time! This is
the best possible deal that we can offer to the Alameda County Fire Department.
Attached is a breakdown of the pricing if you were to purchase 3, 4, or 5 units. It
appears as though you guys are headed in the direction of purchasing five (5)
units, so let's focus on these numbers.
If you were to purchase five (5) units, you will get a pre-taxed multiple unit
discount of $9,788.03. You will receive this discount regardless if you make a
pre-payment or not. Should you choose to pay for the Pumper in full at time of
contract signing, you will receive an additional $15,570.00 discount. The
attached document will provide you with a line-by-line breakdown of the
numbers.
DELIVERY
We are required to quote our delivery timeframe based on what month the
customer places their order. The latest delivery schedule I received from pierce
is dated May 10, 2004. On that bulletin it states the most current production
schedule for Pumpers is 225 to 255 calendar days after receipt and acceptance
of the purchase order. This would mean if Pierce accepted the PO on May 31,
2004, the Pumpers would be in your hands between January 11,2005 and
February 10, 2005.
100% PRE-PAYMENT
Please keep in mind that the 100% pre-payment discount quoted to you is
based on Pierce Manufacturing Inc, having your money on deposit for the
entire delivery timeframe (225 to 255 calendar days). When we invoice you
for the pre-payment we give you NET 15 days to make the payment without
penalty. If the pre-payment is not reCeived in that timeframe, there is one of two
directions that we can go:
1) Calculate what the daily interest savings is and charge that amount back
to the customer for each day that the payment is late.
2) Or we can simply add calendar days to the delivery timeframe so that the
money has the chance to gain the interest that we have quoted.
It is best to try and focus on issuing the purchase order and making the
pre-payment at the same time, or within 15 calendar days of each other.
This way we do not have to worry about charging back interest or extending the
delivery timeframe.
I believe that this information should answer the questions that were
raised this morning. However if there is anything else that you need, please do
not hesitate to contact me at any time. If there is any possible way to
consummate this order by the end of the month, that would be great. In
addition, if you can fax me a copy of the purchase order(s) at the number
shown above prior to mailing it to Pierce that would be appreciated as well.
Thank you for the time and we look forward to hearing from you soon!
Respectfully Submitted,
Ryan Wright - Vice President
Attachments
ALAMEDA COUNTY FIRE DEPARTMENT
Pricing Review of RFQ No. 10084/CB/03
May 10, 2004
THREE (3) UNITS WITH FULL PAYMENT AT DELIVERY / ACCEPTANCE
Initial Bid Amount = $379,956.87
Multiple Unit Discount = (6,943.24)
REVISED COST = $373,013.63
Sales Tax = + 30,773.62
TOTAL = $403,787.25
- This is the price that you will pay per unit if you make no pre-payment of any kind.
- You get the multiple unit discount regardless if you make a pre-payment or not.
THREE (3) UNITS WITH 100% PRE-PAYMENT AT CONTRACT SIGNING
Initial Bid Amount = $379,956.87
Multiple Unit Discount = (6,943.24)
100% pre-payment discount = (15,646.00
REVISED COST = $357,367.63
Sales Tax = + 29,482.83
TOTAL = $386,850.46
- This is the price that you will pay per unit if you pay in full at time of contract signing.
- Pre-tax discounts total $22,589.24 per unit if you pay in full at time of contract signing.
FOUR (4) UNITS WITH FULL PAYMENT AT DELIVERY / ACCEPTANCE
Initial Bid Amount = $379,956.87 '
Multiple Unit Discount = (8,797.07)
REVISED COST = $371,159~80
Sales Tax = + 30,620.68
TOTAL = $401,780.49
- This is the price that you will pay per unit if you make no pre-payment of any kind.
- You .qet the multiple unit discount re.qardless if you make a pre-payment or not.
FOUR (4) UNITS WITH 100% PRE-PAYMENT AT CONTRACT SIGNING
Initial Bid Amount = $379,956.87
Multiple Unit Discount = (8,797.07)
100% pre-payment discount = (15,608.00)
REVISED COST = $355,551.80
Sales Tax = + 29,333.02
TOTAL = $384,884.82
- This is the price that you will pay per unit if you pay in full at time of contract signing.
- Pre-tax discounts total $24,405.07 per unit if you pay in full at time of contract signing.
FIVE (5) UNITS WITH FULL PAYMENT AT DELIVERY / ACCEPTANCE
Initial Bid Amount = $379,956.87
Multiple Unit Discount = (9,788.03)
REVISED COST = $370,168.84
Sales Tax = + 30,538.93
TOTAL = $400,707.77
- This is the price that you wilt, p~iy ,per u,nit if you make no pre-payment of any kind.
- You get the multiple unit discduntre.qardless if you make a pre-payment or not.
FIVE (5) UNITS WITH'lq0,% PRE-PAYMENT AT CONTRACT SIGNING
Initial Bid Amount = $379~956.87
Multiple Unit DiscoUnt = (~,788.03)
100% pre-payment discount = (15,570.00)
REVISED ~;osT = $354,598.84
Sales Tax = + 29,254.40 ....
TOTAL = $383,853.24
- This is the price that you will pay per unit if you pay in full at time of contract signing.
- Pre-tax discounts total $25,358.03 per unit if you pay in full at time of contract signing.
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