HomeMy WebLinkAbout09 - CC-9 - Award the Sole Source Purchase of One Pi - 11/7/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 7, 2017 ITEM NUMBER: CC -9
SUBJECT: AWARD THE SOLE SOURCE PURCHASE OF ONE PIERCE ARROW XT FIRE ENGINE
DATE: OCTOBER 17, 2017
FROM: PUBLIC SERVICES DEPARTMENT/MAINTENANCE SERVICES DIVISION
FIRE & RESCUE DEPARTMENT
PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR
DANIEL A. STEFANO, FIRE CHIEF
FOR FURTHER INFORMATION CONTACT: BRUCE LINDEMANN, MAINTENANCE
SUPERINTENDENT, (714) 327-7470
JASON PYLE, FIRE DIVISION CHIEF (714) 754-5155
RECOMMENDATION:
Approve and authorize the City Manager to execute a sole source purchase order for one
Pierce Arrow -XT Fire Engine from South Coast Fire Equipment, Inc., 2020 South Baker,
Ontario, CA 91761, for a total net purchase cost of $703,736.66.
BACKGROUND:
Included in the City's adopted Fiscal Year 2017-18 Operations and Capital Improvement
Budget is the replacement of Unit 527, a 1997 Emergency One (E -One) 1500 GPM
Pumper, due to increasing maintenance costs and time out -of -service for repairs. The
replacement of this vehicle was initially proposed in Fiscal Year 2016-17, but was
deferred one year. Subsequently, it was formally approved by the City Council in the
Fiscal Year 2017-18 City Budget..
The purchase of the new Fire apparatus is vital to ensure appropriate life and property
protection for the residents and businesses in Costa Mesa. The 1997 E -One Pumper,
Unit 527, is 20 years old and has 183,305 miles. It has served as a frontline emergency
response vehicle for the entirety of its service life. The Fleet Services Division and Fire
& Rescue Department have a standard of 15 -year front line service and 5 -year reserve
service plan for emergency response apparatus.
ANALYSIS:
On November 17, 2015, City Council approved authorization of a sole source purchase
for two (2) new Fire apparatus from South Coast Fire Equipment, Inc., who represents
Pierce Manufacturing. Pierce Manufacturing is being utilized, as it is the only Fire
apparatus manufacturer that offers a Detroit Diesel powerplant engine. Presently, all ten
(10) of the City's Fire apparatus have Detroit Diesel powerplant engines.
Utilizing Pierce Manufacturing will allow the City to continue standardizing parts and
service and will be more cost efficient regarding maintenance and repairs as Pierce
Manufacturing has a sole source contract with Detroit Parts. The City can purchase and
stock parts to service and repair the Fire apparatus in a timely manner. This will allow
the City to be more efficient with maintenance and operation procedures.
The purchase cost includes the industry standard inspection and acceptance schedule
for Pre -construction engineering and mechanical design review, Mid -construction build
inspection and quality assurance, Final Inspection of completed apparatus, road and
pump testing, and acceptance. Typically, three (3) physical trips to Pierce Manufacturing
in Appleton, WI, would have been scheduled for this purchase. However, as this is the
third engine to be purchased from Pierce Manufacturing, all of the CAD drawings and
engineering designs have already been completed. Therefore, the Pre -Construction
design review will be facilitated here in Costa Mesa and will not require a physical trip to
Wisconsin. The apparatus build team consisting of the Fleet Services Division, the Fire &
Rescue Department, and the Communications Division will only need to travel to
Appleton, WI for the Mid Inspection and Final Inspection/Acceptance.
ALTERNATIVES CONSIDERED:
The replacement of the Pierce Arrow -XT Fire Engine could be denied. However, due to
the years of service as a frontline emergency vehicle, the high number of miles and overall
condition of the vehicle, there is a high probability that the current unit 527 could be down
for service and repairs for extended periods of time. Not having operating frontline
emergency fire apparatus could result in increased response times to emergencies and
vital services being delayed. Staff does not recommend this option.
Currently no other manufacturer offers a Detroit Diesel powerplant engine. Fleet Services
is submitting a sole source request to purchase one (1) Fire apparatus with Detroit Diesel
powerplant engines from Pierce Manufacturing. It ensures uniformity and resolves
maintenance issues since other vendors are unable to provide parts and services.
Standardization of apparatus for the Fire Department is critical to Fire Operations.
FISCAL REVIEW:
Funding in the amount of $707,300 for the purchase of one (1) Pierce Arrow -XT Fire
Engine, has been appropriated and included in the Fiscal Year 2017-2018 adopted
budget. In addition, Pierce Manufacturing has submitted a bid that includes a 100% pre-
payment discount of $22,607 for the Fire apparatus.
LEGAL REVIEW:
None required at this time.
CONCLUSION:
For all of the aforementioned reasons, the Fire Department and Fleet Services respectfully
request that the City Council approve and authorize the City Manager to execute a sole
INJ
source purchase order in the amount of $703,736.66 to South Coast Fire Equipment for
one (1) Pierce Arrow -XT Fire Engine.
DANIEL A. STEFANO
Fire Chief
RAJA SETHURAMAN
Public Services Director
ATTACHMENT: 1. Justification for Sole Source Request
2. 100% Pre -Payment Option Quote
DISTRIBUTION: City Manager
Assistant City Manager
City Attorney
Interim Finance Director
City Clerk
File
ATTACHMENT #1
JUSTIFICATION FOR SOLE SOURCE REQUEST
Date: 09/27/2017 Dept./Div.: Public Services/ Fleet Service Phone: 714-327-7470
Contact: Bruce Lindermann
Description of Equip./Service Req.: Pierce ArrowXT Fire Engines
Recommended Vendor: Pierce Manufacturing
Address: 2600 American Drive PO Box 2017 Appleton, WI 54912 Phone: 920-832-3000
1. Check reason for sole source request:
® Sole Source: No other items are known to exist which perform the same function.
❑ Proprietary: The item is held under exclusive title, trademark or copyright by a private person or
company; a proprietary distributorship would also apply.
® Standardization: The City requires the item(s) to standardize parts, design, quality, etc. (explain in
more detail below)
2. Is the product or service available from other sources?
❑ Yes
® No
If YES, list name of vendors:
If NO, explain why the product/service is available from only one source:
1. The new Fire apparatus are vital to ensure appropriate life and property protection for the residents and
businesses in Costa Mesa. Fire apparatus Unit # 527 will be 21 years old by the time the new vehicle arrives.
The City's Fire Department has a standard of 15 year front line service and 5 year reserve service.
On November 17. 2015. Citv Council approved authorization of a sole source purchase for an additional 2 new
Pierce Fire apparatus from South Coast Fire Equipment, Inc. South Coast Fire Equipment, Inc. represents
Pierce Manufacturing. Pierce Manufacturing is being utilized as it is the only Fire apparatus manufacturer
that offers a Detroit Diesel powerplant engine. Presentiv. all of the Citv's Fire apparatus have Detroit Diesel
owerplant engines.
In 2009 the CMFEtR Department transitioned to Pierce Apparatus as the previous apparatus vendor ceased
operations. Currently CMFEtR has three Pierce Apparatus in the fleet. Additionally, there are Six Fire
apparatus that were manufactured by American LaFrance, which has ceased operation and one Fire
apparatus that was manufactured by Emergency One Incorporated, which no longer provides Detroit Diesel
powerplant engines. As stated earlier, three of the Fire apparatus are manufactured by Pierce
Manufacturing. Thus, utilizing Pierce Manufacturing will allow the City to continue standardizing parts since
all of the City's Fire apparatus have Detroit Diesel powerplant engines and City Council approved the previous
Fire apparatus purchased from Pierce Manufacturing in 2009 and 2015. Also, utilizing Pierce Manufacturing
will be more cost efficient regarding maintenance and repairs as Pierce Manufacturing has a sole source
contract with Detroit Parts. The City can purchase and stock parts to service and repair the Fire apparatus in
a timely manner. It allows the Citv to be more efficient with maintenance and operation procedures.
3. Can your requirements be modified so that competitive products or services may be used? )
Sole Source Vendor form - online
,
❑ Yes
® No Please explain:
South Coast Fire Equipment Inc., which is also known as South Coast Emergency Vehicle Service, is the
Southern California authorized Pierce Manufacturing Fire apparatus dealer, warranty, and repair center. The
Citv's previous Fire anDaratus was purchased from this vendor in 2015. All Darts must come from South Coast
and
resources to perform ail necessary maintenance ana repairs.
4. How does the recommended vendor's prices or fees compare to the general market?
South Coast Fire Equipment, Inc., which is also known as South Coast Emergency Vehicle Service, is the only
local Pierce Fire apparatus dealer. It would not be cost effective for the City to compare prices to the
veneral market as there are no other manufacturer's to compare with that have the Detroit Diesel powerplant
en,Rine. In addition, Pierce has submitted a bid that includes a 100% pre -payment discount of $22,607.00 for
the Fire apparatus.
Dept./Div. Head's Signature: '��' �� ate: i�-s�►7
111
�-/
Purchasing Sup _,s is Signature: a / Date: ��-
dpol r5
Purchasing Officer's Signature: Date: �V •� �"l
Sole Source Vendor form -online
t t } ���,h
J
CITY OF COSTA MESA, CALIFORNIA
n: 13 AQ! ; i.'�
PO No.f PO Ref No.:
.4r~Sy
`= f Purchase Requisition
.� 7 ~i,i t4
(Assigned by Purchasing)
® Purchase Order El Change Order El Amend;
ime
'�&a*Sta cam
St)5
Business Unit: Public Services Date Requisitioned: 912712017
item(s)
' `est
Department: Fleet Services Division:
ElRe Is�or WBUDGETED items) -(Memo Attached)
Ship To Address: 2300 Placentia Ave, Costa Mesa CA 92627
❑ Item(s)-Pending Budget Amendment Request #
Contact Person: Bruce Lindermann Phone Number: 714-327-7470
® Requesting Sole Source (Justification Form Attached)
Send Copy of P.O. to: ® Contact Person and Chief Pyle 714-754-5155_
❑ Fixed Asset Tag Request
Item
No.
Qty v ;Unit -
Items (Give Full Description. Size, Catalog No. Etc.}
: :Unit Price
Estimated
r:..
Amount
1
1 1
Fire Engine - Pierce Manufacturin Co. -1500 GPM Triple Combination
$651,234.00
$651,234.00
Pumper.
2
1 1
Performance Bond
$2,021.51
$2,021.52
3
1 1
CA Tire Fee
$10.50
$10.50
If additional lines are needed, please attach a second sheet. Sales Tax (7.75%):
$50,470.64
0
Const./Prof. Svs. Agmt. Completion Date: Include Shipping Fee:
$703,736.66$
Insurance Required: ❑ Yes (Certificate attached) ® No Estimated Total Cost:
Item No.
Account
Fund
Dept/Org.
Program
Project
Amount
1-3
59050
1A
1
19500
$703,736.66
V
Comments,
Total $703,736.66
Please Findttach d ) Sole Source Justification 2) Pierce Manufacturing Co. quo e d.ate 9/,u 1 ] ,
� J� V
NL` I /G
- I ;g)" Zwo )jed�' vd�� (�2cR&.
rut
Proper approvals are required before requisition can be processed.
Suggested Vendor: Pierce Manufacturing Co �� 7gn.-
Address:2600
American Dr, PO Box 2017 Ordered By:epa , onz
City, State, ,Zip Code: Appleton WI 54912
Phone: 909-673-9900 Fax: Approved By:
Director of Finance/Purchasing Otftcer
Contact Person: Kevin M. Newell
Approved By:
Email: kevinCa.southcoastfire.net City Manager (when required)
PURCHASING DIVISION USE ON Y
Vendor ID: �I Buyer: U Insurancelvalidithrt/ i v /,?t\ -
Ship To/Location: Li
Standard Comments: ACC - ALL - ARR - BLA - COI
FINANCE DEPARTMENT UAE ONLY
Available Appropriatio'Q 11Yes []No , ,
9�b 111151
Due
-DCP- IS -FCA FC11 FIX - INS -IS- IST -ORG-QTR - REM - SUB -T&C
bl-Lof: 10.6 I, A Confirmed By:
Rev FY16/17:
ATTACHMENT #2
pr-mrot-,m. LIKE Na 09'HEx47
cGsta Mesa, City Of
4006/0 Pre -Payment Option
September 18, .2017
If a 100% pre-paymont were !'made at contract signino, the following dtscolint would be applied to
the final invoke:
KAWANUft IJUI: A] L)bLlVhKT
I WM0
It your department Makes a 100% CaSh pre -payment at contract signing.
If your department Wgns up for a lease -p urchaso with Pierce Financial Solutions, Ttvs would
require no money down and no payments for one (1) year If desired.
$0.00
* Discount for the 100% pre -payment option fnrludes discounts for the Chassis, "Interest, aerial
(if applicable), anti floodng.cf)arges.
* Aqyftem added af(er, thfs option is elected will come of additional cost and will be added to the
final.bivolce'.
Esch
Extension
One 1 1500 GPM Triple Combination Pumper
mounted on Plet6e Arrow XT Custom
chassis
$ 673,841.00
, $ 6.73,841.00
100% Prepayrnept DISM.Ont
(22.07.00):
$ (22,007100)
APPARATUS COST
661,224.00
6511,234 00
Sales Tax @ 7.160%
$ 60,47044
50,470-64
Performance Bohd.
$ 2,021.62
$ 2,021.52
California Tire 1=00.
-10.50
10.50
TOTAL PREPAY PURCHASE PRICE
$ 7031736.66
701,736.66
Less 100% pre -payment at Contract Sinning_ 1.$
703,736.66
$ 703,738.66
KAWANUft IJUI: A] L)bLlVhKT
I WM0
It your department Makes a 100% CaSh pre -payment at contract signing.
If your department Wgns up for a lease -p urchaso with Pierce Financial Solutions, Ttvs would
require no money down and no payments for one (1) year If desired.
$0.00
* Discount for the 100% pre -payment option fnrludes discounts for the Chassis, "Interest, aerial
(if applicable), anti floodng.cf)arges.
* Aqyftem added af(er, thfs option is elected will come of additional cost and will be added to the
final.bivolce'.
FOR' FURNISHING FIREAPPAR
septorn'bw 18,.2017
Costa Wlesgi, City.of mss
77 Fair Dr.
Costa Mesa, CA 92-Q2 6 RZRP*C3MM. LIKC NO OTHILM"
The undersigned is prepared to manufacture for you, upon an order being placed by you, for final
acceptance by P1.6rce Manufacwfloo, inc., at its oorporate office in Appleton., Wisconsin, the
apparatus and equipment herein -named and for the following pries:
PLEASEVOTE THE FOLLOWING ABOUT THIS QUOTATION.
nv-nt-o' 1pns are aVa liable and are Inoluded, u*. nder- separate cover. -One -of -these options
may save :your departMeOt A significant amount of money!
Said. apparatus and equipmant are to be built and shipped In accordance with the specifications
-warorinternat'10 nalconfilcl:,f4fluresto obtain chassis,
hereto attached, delays due.to strikes,.
materials, or other causes beyond our t0ritrol not preventing, wlthin.ab.out 3014
CAL. gN2&&QAYq after tecelpt of this order and the acceptance thereof at our office in Appleton,
WIsconstrij and to be delivered to you at osta Mesa, CA 92626
The specifications herein -contained shelf form a part of the final contract and are subject to
changes desired bythe purchaser, proAded.-such alterations are interlined prior to the acceptance
by the °companyof the order to puechase, and provided such alterations do not materially. affect
the -cost of the construction of the-apparotus.,
Fedora( Department of Transportation- (DOT) rples
The proposal :for fire apparatus conforms with. all F
and .regulatloos In offact at the 11me of bid, and With all NationilFire Protection.Asgoolatlon (NEPA)
guidelines for Automotive RM Apparatus as published at time of bid, exoept as Modified by
.
customer specifications, Any increased costs incurred by the 'first vartvbeoause of future ranges.
in or additions tD,said DOT or NEPA standards.vill be passed along to the customer as an addition
to the price setforthAbove. Unless accepted Within 30 days from date:, the right is reserved to
withdraw fills proposition.
Respectfully Submitted, Piere anufacturing Inc.
evvin New 11
Sales Representative
I
Each
Extension
jOnd 1500 GPM Triple Combination Pumper
Mounted on a Pierce Arrow XT Custom
chassis
$
673,041.00
$
673t841.00
Sales Tax g. 7Y50%
$
52,222.68
$
62,222468,
APPARATUS COST WITH TAX
$
726,063.68
726,063.68 -
Performance Bond
$
2,021M
2,021.52
California TW&Foe
$
10.5.0
10.50
JOT AL PURCHASEPRICE
728,096,70.,
720,095.70
PLEASEVOTE THE FOLLOWING ABOUT THIS QUOTATION.
nv-nt-o' 1pns are aVa liable and are Inoluded, u*. nder- separate cover. -One -of -these options
may save :your departMeOt A significant amount of money!
Said. apparatus and equipmant are to be built and shipped In accordance with the specifications
-warorinternat'10 nalconfilcl:,f4fluresto obtain chassis,
hereto attached, delays due.to strikes,.
materials, or other causes beyond our t0ritrol not preventing, wlthin.ab.out 3014
CAL. gN2&&QAYq after tecelpt of this order and the acceptance thereof at our office in Appleton,
WIsconstrij and to be delivered to you at osta Mesa, CA 92626
The specifications herein -contained shelf form a part of the final contract and are subject to
changes desired bythe purchaser, proAded.-such alterations are interlined prior to the acceptance
by the °companyof the order to puechase, and provided such alterations do not materially. affect
the -cost of the construction of the-apparotus.,
Fedora( Department of Transportation- (DOT) rples
The proposal :for fire apparatus conforms with. all F
and .regulatloos In offact at the 11me of bid, and With all NationilFire Protection.Asgoolatlon (NEPA)
guidelines for Automotive RM Apparatus as published at time of bid, exoept as Modified by
.
customer specifications, Any increased costs incurred by the 'first vartvbeoause of future ranges.
in or additions tD,said DOT or NEPA standards.vill be passed along to the customer as an addition
to the price setforthAbove. Unless accepted Within 30 days from date:, the right is reserved to
withdraw fills proposition.
Respectfully Submitted, Piere anufacturing Inc.
evvin New 11
Sales Representative
I