Report Prepared by: Janet German, Management Analyst, Fire Dept.
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements Based on Standardization and Approval of a Contract for Purchases of a Type 6 Fire Engine and Accessories from Boise Mobile Equipment Using Measure Y Funds in the Amount of $256,779.99 Plus 10% Contingency Through May 31, 2022 Utilizing a Government Procurement Program
REPORT IN BRIEF
Approval to waive the competitive bidding requirements Based on Standardization and approval of a multi-year contract for purchase of a Type 6 Fire Engine and Accessories from Boise Mobile Equipment using Measure Y funds in the amount of $256,779.99 plus 10% contingency through May 31, 2022 utilizing a competitively bid contract through the Houston-Galveston Area Council procurement program.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 based on standardization and authorizing the purchase to be made with a cooperative purchasing agreement through the Houston-Galveston Area Council competitively bid multi-year contract for a Type 6 engine and accessories: and,
B. Approving the purchase of Type 6 Fire Engine from Boise Mobile Equipment in an amount not to exceed $256,779.99, plus 10% contingency: and,
C. Authorizing the City Manager or the Deputy City Manager, to execute any necessary documents for the purchase specified above; and,
D. Authorizing the Purchasing Supervisor to issue the Purchase Order.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Title 3, Article III of the Merced Municipal Code, Purchases Over Twenty-Five Thousand Dollars.
Section 3.04.210 - Exemptions from competitive bidding
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000), the “bidding threshold”, may be waived with the approval of the City Council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget.
DISCUSSION
The Merced Fire Department is requesting City Council to authorize the purchase of one Boise Mobile Equipment Type 6 Fire Engine and Accessories for the purchase price of $256,779.99 and to that price we are adding a 10% contingency amounting to a total price of $282,457.99 from Boise Mobile Equipment using the Houston-Galveston Area Council Government Cooperative Purchasing Program (HGAC) and waiving the competitive bidding threshold due to the need of standardizing our apparatus fleet.
The Type 6 will be purchased through the HGAC Buy Program. All products and price structures offered through the HGAC Buy program have been awarded through an open, competitive bidding process. Merced Municipal Code 3.04.210-Exemptions from competitive bidding, provides the opportunity to purchase equipment through cooperative purchasing in conjunction with other governmental entities.
In 2010, the City Council approved the use of HGAC, and the City has used HGAC to procure public works equipment/vehicles. The HGAC is a regional council of governments operating under the laws of the State of Texas, governed by a board of elected officials, and has been in existence for more than 30 years. The HGAC Board awards all contracts, which can then be made available to local governments nationwide through HGACBuy, which specializes in capital-intensive products and services that require technical, detailed specifications and extensive professional skills to evaluate the bid responses.
All products offered through HGACBuy have been awarded by virtue of an open competitive bid process and enables the City to purchase large specialized equipment at a greater savings than the traditional method of creating detailed specifications and soliciting and administering the bid process. Because of the national sales base, HGAC’s pricing is typically more competitive than a local agency can obtain through its own bidding process. There are no membership fees to purchase through HGAC, however, a transaction fee of $1,000, will apply.
The City of Merced is eligible to participate in the HGACBuy program, due to execution of an Interlocal Contract for Cooperative Purchasing between the City of Merced and the Texas Interlocal Cooperation Act. Standardization This purchase also would continue the MFD practice of standardization of its vehicles. The MFD’s has been working towards purchasing Pierce apparatus in order to standardize its fleet and BME has been acquired by Pierce.
The MFD staffs five front line Type 1 engines daily and one truck. The forementioned apparatus are designed for structural firefighting and to operate on paved surfaces. The Type 6 is versatile and efficient engine as it is smaller, lighter, faster and more agile than the existing fleet of engines and trucks. With the combination of rapid response and fire suppression agent and equipment, the Type 6 allows for a quicker response time and better accessibility into the Merced Services areas and could save many homes and properties, thereby enhancing the services delivered to the community. The biggest advantage of a Type 6 is that the up-front costs and the long-term cost of ownership is less costly than a Type 1 engine. The Type 6 has better fuel economy and cleaner emissions than the existing fleet of apparatus. The use of the Type 6 will increase the service life of the City owned apparatus by reducing usage of the more expensive vehicles.
No additional staffing and minimal training will be required for the operation
of the vehicle.
IMPACT ON CITY RESOURCES
Funds for the acquisition of the Type 6 Engine were approved in the FY 2021-22 adopted budget; under Fund 084 - Measure Y Fire 20%.
ATTACHMENTS
1. H-GAC Contract and Quote