HomeMy WebLinkAboutPurchase Agreement with Sutphen for a 100 foot mid-mount Aerial platform Truck
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Jason Shrauger, Fire Chief
Chris Kukulski, City Manager
SUBJECT: Bid Award for one (1) 100’ Mid-mount Aerial Platform
MEETING DATE: May 6, 2013
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Recommend award of bid for one (1) 2013 100’ Mid-mount Aerial
Platform to Sutphen Corporation.
SUGGESTED MOTION: Motion to approve award of bid to Sutphen Corporation for one (1)
2013 100’ Mid-mount Aerial Platform and authorize city manager to sign purchase agreement.
BACKGROUND: The Fire Department solicited bid proposals for a new 100’ Mid-mount
Aerial Platform to replace the aging ladder truck at station three. On Tuesday, April 2, 2013, one
bid was received and opened. Fire apparatus are highly technical, specialty pieces of custom
made equipment and we anticipated receiving several bids based on the minimum requirements
of our specification. In this case only one company chose to respond with an actual bid. Careful
consideration was given to the bidder and it was determined that Sutphen Corporation met the
requirements of our specifications and provided a cost that was within budget. Delivery time for
this apparatus is approximately 10 months.
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Initially we anticipated that it would take up to 16 months to build this apparatus. The
anticipated time frame was based on discussions with several different vendors as well as
common industry turnaround times. As such we gained approval from the city manager to
proceed with specifications and bidding prior to the beginning of fiscal year 2014 (FY 14) in an
effort to take delivery before the end of the 2014 fiscal year. Because we still prefer to award the
contract at this time we will be preparing an amendment to the fiscal year 2013 (FY13) approved
budget. The down payment will occur in FY13 and the final payment, due after delivery and
acceptance, will occur in the FY14 budget. This piece of equipment is fully funded out of the
Bozeman Fire Department Capital Equipment & Replacement Fund.
The bid contained several different options for prepayment to assist in decreasing the overall cost
associated with this apparatus. A minimum of 25% down is required to place the order with
options for 50%, 75% and 100% each with a slightly increasing discount. The Fire Department
is comfortable with the 75% option and would prefer not to pay the total price until delivery.
FISCAL EFFECTS: The full funding for this apparatus as bid is currently held in the
department’s Capital Equipment / Replacement fund ($1.2 million, including equipment.) The
following deduction can be realized by making a 75% down payment ($839,458.25).
$1,129,412,02 Maximum Bid Price
$29,022,16 Deduction (75% down)
$1,100,389.86 Final Maximum Price
ALTERNATIVES: We could not award the bid – thus also requiring no Budget Amendment;
A lesser amount of down payment could be made, adjusting the total cost for the apparatus. We
could pay for the truck in full. Or other alternatives as suggested by the City Commission.
Respectfully submitted,
Jason Shrauger, Fire Chief
Attachments: Sutphen Bid Proposal
City of Bozeman Purchase Agreement
Report Compiled on: April 24, 2013
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