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AUTHORIZATION TO PURCHASE ONE (1) PUMPER/TANKER FIRE TRUCK FROM PIERCE MANUFACTURING THROUGH CONRAD FIRE EQUIPMENT IN THE AMOUNT OF $681,699.23 UTILIZING THE HOUSTON GALVESTON AREA CONTRACT (HGAC).
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BACKGROUND: The fiscal year 2019-2020 (FYE 20) budget includes funds to purchase a replacement fire apparatus from Public Safety Sales Tax proceeds.
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 these types of 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 budgeted for FYE 20 from Pierce Manufacturing through Conrad Fire Equipment utilizing the HGAC. Cost of this apparatus is $710,679.68. Conrad offers an 80% prepayment discount. The HGAC contract submitted by Pierce Manufacturing Company for $681,699.23 includes a discount of $28,980.45 for prepaying 80% of the cost of the apparatus. The contract requires an initial payment of $545,359.38 with the remaining $136,339.85 to be paid after the apparatus has been received and accepted by the City. This apparatus will be placed at Fire Station 5, Ward 5.
Funds for this purchase are available in the FYE 20 Budget in Public Safety Sales Tax, Fire Suppression, Fire Trucks (015-6543-422.50-05).
RECOMMENDATION: 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 $681,699.23.