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6.F. - Page 3 of 13 purpose of having a competitive bid procedure. (See Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631.) Section 2.80 of the Purchasing Ordinance allows the "piggyback" procedure to be used for the purchase of materials, equipment, supplies, or professional services without competitive bidding under the following circumstances: • Purchases from vendors whose names are on current established lists and have been awarded the same type of purchase contract by a state agency, county, city or other public agency after competitive bidding processes substantially equivalent to that prescribed by the City Charter or the Purchasing Ordinance; and • Such purchases conform to the specifications thereof of the City; and • The estimated price of any such purchase is equal to or lower than that estimated for such purchase if made directly by the City pursuant to the competitive bidding requirements of the Purchasing Ordinance. Staff recommends piggybacking off the contract between the City of Philadelphia and Pierce Manufacturing, Inc. to purchase the new Aerial Fire Apparatus. Staff indicates that the necessary findings under Section 2.80 maybe madefor thefollowing reasons. First, Public Works staff has reviewed the City of Philadelphia's competitive bidding process, and confirmed that their competitive bidding requirements are equivalent to that prescribed by the Purchasing Ordinance of the City. Both Redwood City and Philadelphia have a policy that all contracts or purchases in excess of ten thousand dollars ($10,000) shall be awarded to the lowest responsible bidder after due notice is given by publication. For a purchase of this size, both agencies also require sealed bids. Second, such purchase conforms to the specifications thereof of the City. Third, the price of this purchase is lower than that estimated for such purchase if made directly by the City pursuant to the competitive bidding requirements of the Purchasing Ordinance. Additionally, if the City were to formulate their own Aerial Fire Apparatus specification followed by the formal request for proposal (RFP) process, it would add an additional six to nine months to award the contract. The expedited process facilitated by the ability to "piggyback" on the open contract with the City of Philadelphia and Pierce Manufacturing, Inc. proves advantageous in the following ways: 1. An abundance of staff time and resources are saved and are otherwise utilized for other projects and operational tasks without the need to formulate an apparatus specification and facilitate a competitive bid process. 2. A second Aerial Fire Apparatus is due for replacement in FY 2019-20. Because the Contract executed by Philadelphia has a contract life through 2021, the City can still utilize this same open contract to purchase a second Aerial Fire Apparatus, streamlining the process once again while maintaining consistency within the Department's fleet. 3. Unit pricing is controlled in subsequent years of the contract by an annual 3% increase to account for inflation while still maintaining a smaller fiscal impact to the compared to a competitive bid process. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 66