Report Prepared by: Janet German, Secretary III, Fire Department
Title
SUBJECT: Purchase a Pierce Quantum Pump Under Cab (PUC) Pumper Fire Engine Utilizing a Government Procurement Program and Waiving the Competitive Bidding Process
REPORT IN BRIEF
Recommends purchasing a Pierce Quantum PUC Pumper Fire Engine from Pierce Manufacturing, Inc., (Pierce) using the Houston-Galveston Area Council Government (HGAC) Cooperative Purchasing Program and waiving the bidding threshold.
RECOMMENDATION
City Council - Adopt a motion:
A. Authorizing the purchase of one (1) Quantum PUC Pumper Fire Engine from Pierce, with a total purchase price of $575,203.42, which includes the discount through the HGAC Cooperative Program, factory inspection trips, delivery/dealer preparation, performance bond, contingency fund, 100% pre-payment discount, and 8% sales tax; and,
B. Waiving the competitive bid requirements, in conformance with Section 3.04.210 of the Merced Municipal Code.
Body
ALTERNATIVES
1. Authorizing the purchase of one (1) Quantum PUC Pumper Fire Engine from Pierce, with a total purchase price of $575,203.42, using the HGAC Cooperative Purchasing Program; or,
2. Deny the purchase of one (1) Quantum PUC Pumper Fire Engine and the waiving of the competitive bid requirements; or,
3. Continue this item to a future City Council meeting.
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 2015-16 Adopted Budget and making Public Safety a priority.
DISCUSSION
The Merced Fire Department (MFD) is requesting City Council to authorize the purchase of one (1) Quantum PUC Pumper Fire Engine from Pierce, with a total purchase price of $575,203.42. Total purchase price includes the discount through the HGAC Cooperative Purchasing Program, factory inspection trips, delivery/dealer preparation, performance bond, contingency fund, 100% pre-payment discount, and 8% sales tax. Additionally, we are requesting that the competitive bid requirement be waived based upon the need to standardize our fleet of apparatus.
History and Past Actions
On July 7, 2013, City Council authorized the MFD to utilize the HGACBuy program and waive the competitive bidding process based upon apparatus standardization to purchase from Pierce, a Pierce Quantum PUC Pumper in the amount of $539,554.59. Due to the favorable outcome of the purchase, the MFD is requesting to utilize the same processes for the replacement of its 1991 Beck Fire Engine.
Need for Replacement
The MFD is requesting authority to replace a 1991 Beck Fire Engine (E253), now serving as a reserve engine, which was originally scheduled for replacement in 2011. Fleet Services recommended replacement of the 1991 Beck Fire Engine based upon its safety, condition, age, regulatory requirements, and unavailability of parts. Although this engine had exceeded its economic and useful life, due to the economic downturn in 2011, many of the MFD’s vehicles’ service life had been extended beyond their original projected replacement date, as in the case of the 1991 Beck. However, this economic decision resulted in an engine that is continually out-of-service due to ongoing breakdowns due to the vehicle’s age and the unavailability of parts due to its manufacturer no longer operating.
Fire Engine Specification
The new fire engine specification consists of a Pierce Quantum PUC Pumper, which meets and/or exceeds the applicable Insurance Services Organization (ISO) and National Fire Protection Association (NFPA) standards. Additionally, the fire engine will meet the clean air emission Tier IV compliance for the California Air Resources Board (CARB).
Cooperative Purchasing
The fire engine will be purchased through the HGACBuy Program, Contract Number SW04-08. All products and price structures offered through the HGACBuy 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 and 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, 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 under Contract Number SW04-08. Funds for the purchase have been appropriated in the FY 15/16 budget. If City Council authorizes the purchase of the engine, a request is being made to waive the competitive bidding process based upon standardization of the MFD’s apparatus. Council authorization waiving the competitive bidding process will not affect local vendors, because there are no local vendors for the Type I Fire Engine being purchased.
Standardization
This purchase also would continue the MFD practice of standardization of its vehicles. The MFD currently has an existing fleet of 11 City-owned fire apparatus of various kinds and types, nine of which were manufactured by Pierce in Appleton, Wisconsin. For 22 years, Pierce has provided the City with excellent quality workmanship, reliability, serviceability, and availability of parts.
Pierce produces fire apparatus that is used throughout the nation for various firefighting applications and each piece of firefighting apparatus is individually customized for the specific needs of the requesting agency. Prior to the start of the manufacturing process, Pierce Engineers meet with agency representatives to discuss the specific performance and functional requirements of the apparatus being ordered. As a result of the City’s longstanding relationship with Pierce Manufacturing, Inc., the MFD has been provided with a fleet of apparatus that has been specifically customized and is ideally suited for the needs of Merced. Fire apparatus developed and engineered in cooperation with Pierce has provided the MFD with an end product that cannot be easily duplicated through the publication of specifications and collection of bids. Although there are many other providers of customized firefighting apparatus, Pierce provides the MFD with the best overall value based on the quality of the construction, performance, warranties, maintenance, and overall service life of the apparatus.
Pierce has a long standing reputation for producing high quality firefighting apparatus. All of the major components used in the assembly of their firefighting apparatus, with the exception of the motor, are manufactured on-site by Pierce. The frame, cab, chassis, pumps, and other major components are manufactured by Pierce to provide quality assurance. Since 1993, the MFD has had many opportunities to send representatives to the Pierce plant to tour and observe processes and each department representative would attest to the quality and precision that is involved in the manufacturing process. However, the quality of our Pierce apparatus is best exemplified by the service this product delivers. The MFD apparatus replacement plan is built on the assumption that our fire apparatus will provide an estimated service life of 20 years. On average, a firefighting engine can be used as the primary or front-line emergency response vehicle for 10 years and will provide an additional 10 years of service in a more limited capacity as a reserve engine. All of the initial firefighting engines purchased since 1993 from Pierce are still operating as front line or reserve fire apparatus.
The standardization of our fleet to Pierce manufactured apparatus has allowed Fleet Services to maintain an inventory of standard parts and allowed our mechanics to be trained and certified to perform factory warranty repairs. When repairs exceed our capabilities, our apparatus is taken to Pierce’s Regional Service Provider, Burton’s Fire, Inc. in Modesto. The availability of an authorized repair facility has greatly assisted the MFD in performing timely repairs, reducing the overall time an apparatus is out of service. More importantly, the standardization of firefighting apparatus has eliminated the need for specialized training, which can be critical in life saving situations. In emergency situations, firefighters can respond instinctively based on their training and familiarity with the apparatus.
Pierce has been in business for 102 years and is North America’s largest fire and emergency vehicle manufacturer. The workmanship, attention to detail, and performance provided by Pierce exceeds its competition.
Pursuant to the City of Merced Municipal Code, Section 3.04.210 - Exemptions from Competitive Bidding, the MFD recommends that Pierce remain the standardized vendor for fire apparatus, and that HCAGBuy be utilized to procure the engine, which will streamline the acquisition of the engine at the best price available.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
The total cost of the engine is $575,203.42 and is well within the $600,000 available in account number 674-1103-63.00 (Vehicle Replacement).
ATTACHMENTS
1. Quote 40617-15 from Pierce Manufacturing Inc.
2. HGACBuy Interlocal Contract for Cooperative Purchasing