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AUTHORIZATION FOR THE PURCHASE OF (1) ONE PUMPER TRUCK IN THE AMOUNT OF $512,434.14 FROM PIERCE MANUFACTURING THROUGH CONRAD FIRE EQUIPMENT UTILIZING THE HOUSTON GALVESTON AREA CONTRACT (HGAC) FOR THE FIRE DEPARTMENT.
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BACKGROUND: The fiscal year 2016-2017 (FYE 17) budget includes funds to purchase a replacement fire apparatus from Public Safety Sales Tax proceeds. Unit 20 is a 2003 E-One Pumper that has high mileage and is unreliable.
DISCUSSION: The City has purchased major fleet vehicles from the Houston Galveston Area Contract (HGAC) in the past to satisfy the Norman Code requirements found in Section 8-204. Purchasing from state contracts provides the City with the benefit of a competitive bid process without the time and expense of acquiring separate bids. In this case, the HGAC has a much wider selection of competitively bid items available, including fire apparatus. The City has purchased several apparatus through Conrad Fire Equipment in the past with success.
In this case we have an opportunity to purchase an apparatus to replace Unit 20 budgeted for FYE 17 from Pierce Manufacturing through Conrad Fire Equipment utilizing the HGAC. Cost of this apparatus is $531,189. Conrad offers a discount if 80% of the cost is prepaid. The HGAC contract submitted by Pierce Manufacturing Company for $512,434.14 includes a discount of $18,754.86 when the City makes a prepayment of 80% at the time of order. The contract requires an initial payment of $424,951.20 with the remaining $87,482.94 to be paid after the apparatus has been received and accepted by the City. This apparatus will be based at Station 5 (Little Axe Station, 1000 168th Avenue NE). In 2014 the City purchased a replacement for Unit 24 at a cost of $481,684 with a discount of $16,822.87 for prepayment of 80% at time of order making the final cost $466,861.13. The standard increase in the cost of a fire apparatus is between 2% and 6% per year. The replacement for Unit 20 is an Arrow XT which is a more rugged chassis due to the fact that the terrain out east will be more off road and there is also protection for lights, mirrors etc. which could be damaged more easily in the rough terrain.
Funds for this purchase are available in the FYE 17 Budget in Public Safety Sales Tax, Fire Suppression, Fire Trucks (015-6543-422.50-05).
RECOMMENDATION: Section 8-204(b)(3) of the Code of the City of Norman authorizes the City Council to waive competitive bidding for the purchase of supplies, materials, equipment, or contractual services purchased from another unit of government at a price deemed below that obtainable from private dealers, including war surplus. In accordance therewith, Staff recommends that City Council authorize the purchase of the fire apparatus from Pierce Manufacturing through Conrad Fire Equipment utilizing the HGAC in the amount of $512,434.14.