Title:
Title
Cooperative Purchase Agreement: Fire Ambulances
End
FileID
File ID: 2018-01649
Location
Location: Citywide
Recommendation:
Recommendation
Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to increase the expenditure and revenue budgets in the Department of Public Works FY2018/19 operating budget (Fleet Fund, Fund 6501) in the amount of $298,858; 2) authorizing the City Manager or the City Manager’s designee to appropriate available General Fund Intergovernmental Transfer (IGT) fund balance in the amount of $298,858 to the Advanced Life Support Equipment Program (F12000200); 3) approving the use of the Houston-Galveston Area Council (HGAC) cooperative purchase agreement with Braun Northwest, Inc. (Contract No. AM10-18) for the purchase of four ambulances in an amount not to exceed $547,974; and 4) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
Contact: Alison Crandall, Program Specialist, (916) 808-1163; Mark Stevens, Fleet Manager, (916) 808-5869, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
3-Resolution
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase four ambulances for the Fire Department. Three will be new units and one will be remounted for replacement due to an accident.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.
Economic Impacts: None
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: After reviewing the available purchase options, the Fleet Management Division has determined that using the cooperative purchase agreement with Houston-Galveston Area Council (HGAC) and Braun Northwest, Inc. represents the most advantageous purchasing strategy. The contract was competitively bid, and HGAC receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers capital costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Financial Considerations: The recommended purchases in an amount not to exceed $547,974 will be made from the Department of Public Works Fiscal Year (FY) 2018/19 operating budget (Fleet Fund, Fund 6501) and charged to the Fire Department’s Advanced Life Support Equipment Program (F12000200). The cost to purchase the equipment is shown in the table below.
|
QTY |
ITEM |
UNIT COST |
TOTAL COST |
|
3 |
NEW MEDICS |
$ 148,347 |
$ 445,040 |
|
1 |
REMOUNT MEDIC |
$ 102,934 |
$ 102,934 |
|
TOTAL |
$ 547,974 |
An increase to the Department of Public Works operating revenue and expenditure budgets (Fund 6501) in the amount of $298,858 is necessary as two new ambulances were not accounted for in the annual budget process. A transfer in the amount of $298,858 from available General Fund Intergovernmental Transfer (IGT) resources to the Advanced Life Support Equipment Program (F12000200) is requested to cover the costs of the two new units. Upon completion of the recommended budget adjustments, sufficient funding will be available in the Department of Public Works, Fleet Division’s Fiscal Year 2018/19 operating budget (Fund 6501) and in the Advanced Life Support Equipment Program (Fund 1001) to make the purchase.
Local Business Enterprise (LBE): Braun Northwest, Inc. is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.