AgdaPkt 2012-06-18 Special - Laserfiche WebLink

Browse Search

6.1. E. - Page 3 � The estimated price of any such purchase 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. Please note that the Open Market Purchase provisions allowing for piggybacking is written in an ambiguous manner leading to inconsistent interpretations. One interpretation is the piggybacking procedure is limited to purchases of $60,000 and in which case it could not be applied to this purchase which is for $967,296. Such a restriction would not appear to make sense as the regular procedure for purchases under $60,000 is itself an alternative to a formal competitive bid process, with three written quotations and City Manager approval. [RWCMC s. 2.65] This Section should be clarified so that the intent of the City Council is clear. Accordingly, if the City Council does not agree with this interpretation, it should not approve the process to purchase this fireboat. Staff indicates that the necessary findings under Section 2.80 may be made for the following reasons. First, staff proposes to piggyback on the competitive bidding requirements of Union Fire, a volunteer fire department located in Bensalem, Pennsylvania. Union Fire is a public agency. Fire Department staff has reviewed Union Fire's purchasing policy and competitive bidding requirements and determined that they are equivalent to that prescribed by the City Charter or the Purchasing Ordinance of the City and is currently in an agreement with MCM to construct a Fireboat. Second, such purchase conforms to the specifications thereof of the City because both Redwood City and Union Fire 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. Both agencies require sealed bids for purchases over $10,000. Union Fire had six fireboat manufacturers respond to the bid solicitation. MCM was the lowest bidder that could accommodate all of Union Fire's specifications for construction of the boat. Third, the estimated price of this 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. The City did not go out for competitive bid because the Fire Department developed specifications necessary to procure the grant from the Department of Homeland Security, Port Security Grant Program. MCM was the only fireboat manufacture that could meet the City's specifications at that time. The total cost of construction and delivery of the boat is $967,296. Piggybacking onto another agreement is saving the City up to 5% of the total agreement in administrative costs. A 5% increase puts the Fire Department at risk of exceeding the grant monies awarded. The fiduciary agent of the grant funds, SFMX, has approved this alternative procurement approach.