June 8, 2004

SUBJECT: Rejection of Bid for One Fire Rescue Unit (F0310-22)

Request is made that Council reject the sole bid received in response to Invitation for Bids No. F0310-22 for the purchase of one fire rescue unit for the Department of Public Works Fleet Maintenance Division.

The current rescue unit was placed into service in 1983 with a 20-year service life assigned, with replacement scheduled for FY 2002/03. The Department of Public Safety Fire staff met with Fleet in mid-2001 to discuss replacement of the rescue unit. Fire Division staff felt that the existing truck was technologically obsolete and that the vehicle configuration did not suit their current needs. Fire Division staff proposed a customized rescue unit that would have a more efficient layout, increased storage space, improved access to self-contained breathing apparatus (SCBA), and improved scene lighting and that would incorporate a number of other improvements related to rescue work.

Based upon Fire Division input, bid specifications were prepared by Fleet, Public Safety and Purchasing staff. Since the City's fire apparatus has been standardized to American LaFrance, the bid document indicated that only bids offering that manufacturer's equipment would be considered. Invitation for Bids No. F0310-22 was advertised in The Sun on February 11, 2004 and distributed to firms who provide customized fire rescue units.

Sealed bids were received and publicly opened on March 24, 2004. Only one bid was received.

Staff determined that this bid was excessive. Negotiations between bidder and Fleet, Purchasing and Fire staff members resulted in a final bid price of $366,508.

While evaluating the results of Invitation for Bids No. F0310-22, the City Manager questioned the need to replace the equipment at this time and requested an evaluation of the mechanical condition of the existing rescue unit. The evaluation results were that the vehicle is in reasonably good condition with minimal hours of downtime this fiscal year. Based on this evaluation and discussions with Public Works and Public Safety, the City Manager has determined that replacement of the fire rescue unit should be postponed for two years.

Staff, therefore, recommends rejection of the bid for one fire rescue unit.

Two years of equipment replacement rental rates, totaling $38,000, would be saved by rejecting the bid received in response to Invitation for Bids No. F0310-22.

It is recommended that Council reject the sole bid received in response to Invitation for Bids No. F0310-22 for one fire rescue unit.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Amy Chan
City Manager