HomeMy WebLinkAbout090412-3045-PO-for-2-Ambulances-JM
City of Palo Alto (ID # 3045)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/4/2012
Summary Title: Award of a Purchase Order for Two Ambulances
Title: Approval of Purchase Order with Leader Industries in an Amount Not to
Exceed $393,267 for the Purchase of Two Ambulances (Scheduled Vehicle and
Equipment Replacement Capital Improvement Program VR-13000)
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager to execute a purchase order with
Leader Industries in the amount of $393,267 for the purchase of two
ambulances; and
2. Authorize the City Manager or his designee to negotiate and execute one or
more changes to the purchase order with Leader Industries for related,
additional but unforeseen work which may develop during the project, the
total value of which shall not exceed $10,000.
Background
The vehicle and equipment replacement policy described in the City Policy and
Procedures 4-1 (Vehicle and Equipment Use, Maintenance, and Replacement),
provides for the on-going replacement of City fleet vehicles and equipment.
Replacements are scheduled using guidelines based on age, mileage
accumulation, and obsolence.
The City’s fleet currently includes four ambulances. Policy 4-1 prescribes a
replacement interval for ambulances of four (4) years or 85,000 miles. The
existing replacement guidelines are outdated and will be extended in the next
revision to the Policy. Newer ambulances are more reliable and should last in
excess of 100,000 miles. However, the two ambulances that will be replaced
through this purchase (#6043 and #6044) are more than 9 years old, with 124,050
and 141,553 miles respectively. These ambulances were used exclusively for
frontline service from June, 2003 through January, 2012.
Discussion
This purchase is being conducted with full consideration of the recent Audit of
Vehicle Utilization and Replacement. The audit did not include a review of the
City’s inventory of emergency vehicles, and emergency vehicles are generally
exempt for minimum utilization requirements. The vehicles being replaced
through this purchase have greatly exceeded the minimum mileage accumulation
of 2,500 miles annually. Regardless of utilization, the City may face decreasing
capability to respond to emergencies without the new vehicles.
On February 14, 2012, the Fleet Review Committee (FRC) approved replacement
of these vehicles in accordance with the audit recommendations. The approval
was based on the following:
An examination of each vehicle’s current usage;
An analysis of each vehicle’s operating and replacement costs;
A comparison of the age, mileage, operating cost and performance of each
vehicle with others in its class; and
An analysis of alternatives to ownership, such as mileage
reimbursement;pooling/sharing; the reassignment of another utilized
vehicle, or renting.
The FRC determined that there are no alternatives to outright replacement.
Ambulances are used for special tasks and are equipped with a considerable
amount of medical and emergency equipment that renders them unsuitable for
any purpose other than emergency medical response. This precludes their
assignment to a motor pool, and rules out the use of a private vehicle with
mileage reimbursement. They are each used by a single shift on a continuous
daily basis, so there are no opportunities for sharing. There are no similar,
underutilized vehicles available to use as replacements for these vehicles.
Renting these vehicles would not be a cost-effective option because they are
continuously used throughout the year.
Bidding and Selection Process
On February 7, 2011, a Request for Quotation (RFQ) for ambulances was sent to
four vendors. Bids were received from two qualified vendors on March 16, 2011,
as listed on the attached bid summary (Attachment A). Bids ranged from a high of
$810,872 to a low bid of $798,483. The total bid price is for four ambulances (two
were purchased in Fiscal Year 2011, and two are being requested now). The total
bid also includes a trade-in credit for two existing ambulances. Staff did not
exercise the trade-in option because the trade-in credit was less than the market
value of the vehicles.
Staff has reviewed all bids submitted and recommends that the bid submitted by
Leader Industries be accepted and that Leader Industries be declared the lowest
responsible bidder.
Staff has checked references supplied by the vendor for previous contracts and
has found no significant complaints.
Resource Impact
Funding is available for this purchase in Vehicle Replacement Fund Capital
Improvement Project VR-13000.
Policy Implications
Authorization of the contract does not represent any change to the existing
policy.
Environmental Review
The vehicles being supplied are in conformance with all applicable laws and
regulations. This purchase is exempt for the California Environmental Quality Act
under the CEQA guidelines (Section 15061).
Attachments:
A - Bid Summary Type III Ambulance RFQ140129 (PDF)
Prepared By: John Moran, Assistant Fleet Manager
Department Head: J. Michael Sartor, Director
City Manager Approval: ____________________________________
James Keene, City Manager
Attachment B
BID SUMMARY
Type III Ambulance
RFQ140129
Leader Industries Bid Total $798,483.00
Golden State Fire Apparatus Bid Total $810,872.42