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6.1.B. - Page 2 <br />Under Section 2.80 an alternative procedure may be utilized when it is more likely to <br />obtain maximum quality, service or performance at a minimum price. (RCMC 2.80 "Open <br />Market Procedures.") One of the City's recognized alternative procedures is leveraged <br />pricing that is obtained through the buying power of another agency and extending that <br />organization's contract to benefit the City's proposed purchase in order to get the best <br />quality and price. This process allows the City to "piggyback" on the pricing that has <br />been achieved through another public agency's bidding process. Further, alternative <br />procedures may be acceptable even when there is no specific provision for alternatives to <br />competitive bidding when competitive proposals would be unavailing or would not produce <br />an advantage, and thwart the underlying purpose of having a competitive bid procedure. <br />(See Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631.) <br />Section 2.80 of the Purchasing Ordinance allows the "piggyback" procedure to be used for <br />the purchase of materials, equipment, supplies, or professional services without <br />competitive bidding under the following circumstances: <br />• Purchases from vendors whose names are on current established lists and <br />have been awarded the same type of purchase contract by a state agency, <br />county, city or other public agency after competitive bidding processes <br />substantially equivalent to that prescribed by the City Charter or the <br />Purchasing Ordinance; and <br />• Such purchases conform to the specifications thereof of the City; and <br />• The estimated price of any such purchase equal to or lower than that <br />estimated for such purchase if made directly by the City pursuant to the <br />competitive bidding requirements of the Purchasing Ordinance. <br />Staff recommends piggybacking off the contract between the City of San Jose and Hi -Tech <br />Emergency Vehicle Service, Inc. to purchase three 1500 GMP fire engines. Staff indicates <br />that the necessary findings under Section 2.80 may be made for the following <br />reasons. <br />First, Public Works staff has reviewed the City of San Jose's competitive bidding process, <br />and confirmed that their competitive bidding requirements are equivalent to that prescribed <br />by the City Charter or the Purchasing Ordinance of the City. <br />Second, such purchase conforms to the specifications thereof of the City because both <br />Redwood City and San Jose have a policy that all contracts or purchases in excess of <br />ten thousand dollars ($10,000) shall be awarded to the lowest responsible bidder after <br />due notice is given by publication. For a purchase of this size, both agencies also require <br />sealed bids. <br />Third, the price of this purchase is lower than that estimated for such purchase if made <br />directly by the City pursuant to the competitive bidding requirements of the Purchasing <br />