Consent 1.B.1.
Regular City Council Meeting
- Meeting Date:
- 02/11/2019
- TITLE
- BID AWARD: Fire Apparatus
- PRESENTED BY:
- William Rash
- Department:
- Fire
Presentation:
No
PROBLEM/ISSUE STATEMENT
The City of Billings Fire Department issued an Invitation for Sealed Bids for the purchase of two (2) new fire pumpers. The Bid was advertised in the Yellowstone County News on December 28, 2018, January 4, 11 and 18, 2019. The Bid opening was held January 22, 2019. Two bids were received. The responding vendors were: Pierce Manufacturing, Inc. and Sutphen. Pierce Manufacturing's bid was $1,277,684.00 and Sutphen's was $1,218,883.34. However, Pierce Manufacturing is offering various discount options, which with Council approval brings the total bid to $1,217,169.00, as outlined below:
A committee made up of Fire Department staff, the Finance Director and Purchasing Agent have reviewed the specifications and discount allowances and recommend executing a contract with the pre-payment options with Pierce Manufacturing.
If Mayor and Council approve the full pre-payment options, staff recommends the addition of a performance bond to this contract to provide additional security and protection, which still leaves Pierce Manufacturing as the lowest responsible bid.
| 1,277,684.00 | Proposal price for two (2) Pierce Enforcer PUC Pumpers |
| (20,952.00) | Less discount for chassis progress payment |
| (12,073.00) | Less discount for payment upon completion at the factory |
| (21,940.00) | Less discount for 100% pre-payment |
| (9,000.00) | Less drive-out allowance (FOB Factory) |
| 3,450.00 | Plus performance bond |
| 1,217,169.00 | Total purchase price |
A committee made up of Fire Department staff, the Finance Director and Purchasing Agent have reviewed the specifications and discount allowances and recommend executing a contract with the pre-payment options with Pierce Manufacturing.
If Mayor and Council approve the full pre-payment options, staff recommends the addition of a performance bond to this contract to provide additional security and protection, which still leaves Pierce Manufacturing as the lowest responsible bid.
ALTERNATIVES ANALYZED
City Council may:
- approve staff recommendation with some or all discount options;
- approve staff recommendation with discount options;
- disapprove staff recommendation.
FINANCIAL IMPACT
The purchase of two (2) fire pumpers is fully funded by the City's Equipment Replacement Plan for FY2019.
$1,215,676 of the purchase of these two (2) fire pumpers has been allocated through the City’s Equipment Rotation Replacement Plan for FY2019. The department’s budget will absorb the difference.
$1,215,676 of the purchase of these two (2) fire pumpers has been allocated through the City’s Equipment Rotation Replacement Plan for FY2019. The department’s budget will absorb the difference.
RECOMMENDATION
Staff recommends awarding the contract for the purchase of two (2) fire pumpers to Pierce Manufacturing, Inc. for their total bid of $1,217,169.00, including all prepayment options and the addition of a performance bond.