DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Ambulances
SUMMARY:
This ordinance authorizes acceptance of a contract with Mac Haik Dodge Chrysler Jeep to replace up to 21 Ambulances in FY 2015 and FY 2016 funded from the Equipment Renewal and Replacement Fund in the amount of $3,976,250.00.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the offer submitted by Mac Haik Dodge Chrysler Jeep utilizing the Houston-Galveston Area Council cooperative contract number AM10-14 to provide up to 21 ambulances for a total cost of $3,976,250.00.
This contract will provide the San Antonio Fire Department, Emergency Medical Services Division with up to 21 ambulances to be installed on Dodge 4500 cab and chassis trucks. Currently, the Fire Department Emergency Medical Services Division (EMS) utilizes 61 units, which are composed of 33 frontline units, 8 peak period units, with 20 units in reserve. All 21 ambulances requested will be replacing existing units, which will be taken out of service and prepared for auction as the new units are placed into operation. With a lead time of approximately 220 days for delivery of the new ambulances, approval of the FY 2016 purchase will allow the order to be placed early in the fiscal year. This will ensure that the ambulances are received at the time existing equipment is due for replacement.
In continuation of the City’s commitment to a cleaner environment, all diesel engine vehicles purchased under this contract are certified as low emission and in compliance with the current Environmental Protection Agency (EPA) emissions standards. Ultra Low Sulfur Diesel is the cleanest burning fuel available for the Gross Vehicle Weight Rating of the equipment to be purchased. This acquisition is consistent with the City’s Vehicle Fleet Environmental Acquisition Policy.
Vehicles and equipment that meet their expected life cycle are usually sold at auction but may also be traded-in to the selling dealer. The equipment that is being replaced will be sold at auction. If the Fleet asset is in the City’s fleet replacement program then the proceeds are returned to the Equipment Renewal and Replacement Fund. The proceeds are then used to purchase new similar vehicles and equipment.
These vehicles could not be acquired as propane powered because the particular vehicles were not available in the Liquefied Petroleum Gas (LPG) configuration or because the specific operational requirements of the vehicles precluded this option.
ISSUE:
This contract will provide the City of San Antonio Fire Department’s Emergency Medical Services Division with up to 21 turnkey Type I Ambulances to support their advanced life support program.
These units will be purchased from Mac Haik Dodge Chrysler Jeep utilizing the Houston-Galveston Area Council cooperative contract number AM10-14. This purchase will be made in accordance with the Houston-Galveston Cooperative Program passed on resolution 96-41-48 dated 10/10/1996.
The Houston-Galveston Cooperative Program is administered by the Houston-Galveston Area Council Cooperative. All products and services included in this cooperative were competitively bid and awarded by the Cooperative’s Board of Trustees based on Texas statutes.
The cab and chassis have a 100,000 mile/5 year powertrain and a 36,000 mile/36 month bumper to bumper warranty. The ambulance body has a lifetime module warranty.
The Small Business Economic Development Advocacy Ordinance requirements were waived due to the lack of qualified SMWBE’s available to provide the goods and services.
The recommended award is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current vehicles scheduled for replacement have met or will meet their age and mileage requirement cycles and may not be economically feasible to repair. If the 21 replacement ambulances are not purchased, the Fire Department’s ability to provide advanced life support for the residents of San Antonio and surrounding areas could be impacted. The alternatives are to continue to use the vehicles currently available and incur increased maintenance costs and downtime, potentially compromising emergency medical services continuous coverage throughout the City.
FISCAL IMPACT:
The total cost for this contract is $3,976,250.00 which will be funded utilizing the Equipment Renewal and Replacement Fund.
The ERRF charges a monthly lease rate to each respective department/fund the entire time a department/fund has possession of a vehicle or equipment. When the vehicle or equipment reaches the end of its life-cycle or the contractually obligated period the replacement fund provides the financial resources for its like replacement.
RECOMMENDATION:
Staff recommends the approval of this purchase with Mac Haik Dodge Chrysler Jeep for a total cost of $3,976,250.00.
This contract is procured by means of cooperative purchasing and a Contracts Disclosure Form is not required.