Report Prepared by: Dan Arnold, Public Works Manager - Operations
Title
SUBJECT: Purchase of Approved Fleet Vehicles Through the National Joint Powers Alliance and Houston Galveston Area Council Government Buy Procurement Programs and Waiver of the Competitive Bidding Requirement
REPORT IN BRIEF
Considers waiving the competitive bidding requirement for the purchase of eighteen previously budgeted and Council approved fleet vehicles through two government procurement programs.
RECOMMENDATION
City Council - Adopt a motion waiving the City’s competitive bidding requirement to purchase eighteen vehicles through the National Joint Powers Alliance (NJPA) and Houston Galveston Area Council Buy (HGACBuy) government procurement programs, and authorizing the City Buyer to issue the purchase orders.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to 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
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
Operational Sustainability
DISCUSSION
Government Procurement Programs:
The National Joint Powers Alliance (NJPA) and Houston Galveston Area Council Buy (HGACBuy) programs offer equipment procurement programs to government entities nationwide. Specifications are created and Request for Bids are sought by the respective program for a wide variety of equipment used by local governments. As a result of the nationwide scope of these programs, the City is able to purchase large or specialized vehicles/equipment for much less than the more traditional method of creating specifications and soliciting bids in-house.
In addition to cost savings, purchasing directly from the NJPA and HGACBuy also allows the city to standardize equipment. The Fleet Services Division desires to standardize equipment in order to reduce parts inventory and ensure the vehicle controls, handling, and maneuvering are the same for vehicles that are being used by City employees.
The NJPA purchases will be made through the National Fleet Auto Group and the HGACBuy purchases will be made through Municipal Maintenance Equipment (MME) / Houston Freightliner. The City has previously utilized these programs to purchase a variety of vehicles and equipment including police patrol vehicles, street sweepers, leaf trucks, backhoes, etc. Both the National Auto Fleet Group and MME have provided excellent product support and service for existing equipment.
Buying the vehicles directly through these government procurement programs requires waiving of the City’s competitive bidding requirements.
FY 17/18 Vehicle Purchases:
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of eighteen (18) vehicles utilizing the NJPA and HGACBuy government procurement programs. The 18 replacement and/or new vehicles were included in the Fiscal Year 2017/2018 adopted budget.
Vehicles to be purchased include Police and Fire vehicles, as well as various vehicles for Public Works. All equipment requested for purchase in this report will meet the California Air Resources Board (CARB) Tier IV final clean air vehicle pollution rating.
If approved, purchasing the vehicles through the government pricing programs will save the city $177,176.80 (see Attachment 1). The total cost to purchase all 18 vehicles through the government pricing programs is $1,668,896.76.
Staff requests waiving the bidding requirements in order to standardize equipment and utilize the government pricing contracts.
IMPACT ON CITY RESOURCES
The purchase of these vehicles was included in the FY 2017/2018 Adopted Budget; no appropriation of funds is needed.
ATTACHMENTS
1. Approved Vehicle Purchases Cost Analysis
2. Vehicle Quotes
3. HGACBuy Agreement
4. NJPA Certificate