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P
.W.1 Motion to accept the Global bid through the Houston -Galveston Area Council Cooperative
Purchasing Program to replace Engine 517 for an amount not to exceed $682,158.00.
Public
Action
Nov 07, 2018
Nov 07, 2018
Yes
682,15 .00
Yes
The Fire Department is scheduled to replace the 2003 Pierce Quantum Pumper 517 (Reserve Engine 13) in 2018. Thi
apparatus has over 108,000 miles, over 11,500 hours logged, and its current condition and maintenance records indicat
replacement is warranted. Fire engines generally remain in service for 15 years; ten as frontline and five in reserve status. 51
was frontline for almost 13 of its 15 years in service. Responding to approximately 2000 calls per year, this apparatus has me
its useful life expectancy and extending its use will result in increasingly higher maintenance costs. The vehicle evaluation form
and life cycle cost analysis are attached for reference.
Careful consideration has been given to designing a vehicle that fits the current and future needs of o Since the
purchase of the current Engine 517 the department's engine inventories have increased considerably in the last 15 years.
Vehicles now carry more equipment than ever before. Driven by the department's cancer prevention campaign, staff adopted
the clean cab isolation policy which requires additional space for decontamination ("decon") kits. The department has
also added Active Shooter protective gear and carry more EMS and Rescue equipment such as; portable extrication tools,
isolation kits, Rapid Intervention Team packs, scene lights, cardiac monitors, larger fans, Rescue Jack, additional large diameter
hose and associated appliances. The apparatus committee identified these needs in the last Engine purchase (516) and over the
last several months, the Pierce Dash CF has performed well and has all the features recommended for today"s fire apparatus.
General Bid Information and Budget Impact:
This Engine would be purchased from Pierce Manufacturing through Global Emergency Products. The department's last five fire
apparatus purchases (four pumpers, as well as our current tower ladder truck) have been from Pierce Manufacturing. Staff
considers Pierce vehicles as well as their service to be unmatched. As members of the Houston -Galveston Area Council
Cooperative (HGAC) Purchasing Program, the Village has the opportunity to participate in assured competitive pricing through
volume purchasing and discounts.
HGAC program pricing has been awarded through a public competitive process and has been utilized by at least seven of our
surrounding communities for recent fire apparatus purchases. The budgeted amount of this vehicle is $625,000.00 however due
to the new pumper design and recent tariffs imposed on steel and aluminum, the cost of replacing 517 with a similar vehicle is
higher than anticipated. The total cost is $682, 158.00. With a 100% pre -payment final cost will be $662,720.00. The estimated
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re -sale value of the current Reserve Engine 13 517 is $25,000 to $50,000 and it will be sold using Govdeals.com through Public
Works.
Alternatives
1. Acceptance of the Global bid through the Houston- lvson Area Council Cooperative Purchasing Program for an amount
not to exceed $682,158.00.
2. Action at discretion of Village Board.
Staff Recommendation
Staff recommends acceptance of the Global bid through the Houston -Galveston Area Council Cooperative Purchasing#
Program for an amount not to exceed $682, 158.00.
-ieetC.p(Jf (25 KB)
31 E v a I Forms, A -E. 3, 1I0-201.8.pdf (96 KB) Copy of 517 L.Jfe Cycle Cost Works[
NO
-iarges.pdf (247 KB)
517 replaceme�nt memo.pdf (1.31. KB)
Pierce commodity surc[
Puc [Zescue PLUmper.jpg (1,754 KB)
C 1:
51.7A.,JPG (1,027 KB) Das[
.................
Administrative Content
Executive Content
Motion & Voting
E
Motion by Michael Zadel, second by Paul Hoefert.
Final Resolution: Motion Carries
Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel
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EXHIBIT A
Village of Mount Prospect
Vehicle/Equipment Condition Evaluation Form
Unit 4 517 Assigned Dept. /Div. FIRE
Year: 2003
Make: Pierce
Model:
Quantum Mileage: 108,297
Hours: 11,508
Date of Evaluation:
9/28/18
Performed By: Breitzman/Krotky
System
Diagnosis
Estimated Repair Cost
Engine
Fair -Injectors, leaks
$6,000.00
Transmission
Good -Replaced twice
Differential
Good
Exhaust System
Fair -Rusty
$2,000.00
Cooling System
Fair -Radiator Corrosion
$6,000.00
Brakes
Fair -30%
$4,000.00
Tires
Fair -50%
$3,600.00 next year
Steering
Good
Suspension
Fair -Rear Springs
$3,000.00
HVAC
Fair -System outdated
$5,000.00
Electrical
Poor -Corrosion
$10,000.00 -Non LED Lights
Body/Frame
Poor -Rusted badly, frame sag
$15,000.00
Interior
Fair -Seats worn, ripped
$4,000.00
Other- Pump Circuit
Fair -Replace valves, Pump
worn
$12,000.00
Total Estimated Repair
Cost
INEEM
$70,600.00
Diagnosis Code
Code Description
Good
Systems are functioning well and no major repairs are expected.
Fair
Some major repairs are needed, but unit can remain in service a little
longer in current condition.
Poor
Major repairs are required as soon as possible to ensure unit safety and
reliability.
FXururrr- u
Village of Mount Prospect
Vehicle/Equipment Evaluation Summary Report
Unit 4 517
Year: 2003
Hours: 11,508
Ratings:
Unit age: 15
Assigned Dept. /Div. FIRE
Make: Pierce Model: Quantum Mileage: 108,297
Date of Evaluation: 10/3/18 Performed By: Breitzman
Base Policy Age: 15
Mileage/Hrs: 11,508 Base Policy Mileage/Hrs: 80,000/8,000
Maintenance Cost:
Repair and Maintenance Cost: $ 147,885 - Purchase Price: $ 315,000
Repair and Maintenance Percentage of Purchase Price: 47 %
Condition Evaluation: (attach Vehicle Condition Evaluation Form)
Estimated Repair Cost: $ 70,600 - Current Book Value: $ 25,000
Repair Cost Percentage of Current Book Value: 282 %
Total Ownership Cost Per Mile:
(Lifetime Fuel + R&M + Purchase Price) $ 535,625
Less Salvage Value $ 25,000
Net Lifetime Costs $ 510,625
Divided by Mileage/Hours 11,508
Operating Cost Per Mile/Hour $ 44.37
Points: 2
Points: 4
Points: 4
Points: 4
Total Points: 14
Comments and other considerations:
This Engine has operated 11,508 hours during its lifetime, which equals 345,240 engine miles.
Superintendent's recommendation:
This equipment has met its life expectancy and major repairs will be needed if service life is
extended any longer based on condition.
$550,000.00
$500,000.00
$450,000.00
$400,000.00
$350,000.00
N $300,000.00
0
U $250,000.00
$200,000.00
$150,000.00
$100,000.00
$50,000.00
$0.00
2003
EXHIBIT C
Village of Mount Prospect
October 2018 Vehicle/Equipment Life Cycle Cost Analysis
Vehicle/Equipment Number - 517 (2003 Pirce Quantum Engine Pumper)
+Total Ownership Costs
Life Cycle Costs —A— Total R&M
* Total Fuel
- ■ -Market Value
Year
$535,625.00
$147,885.00
$72,740.00
$25,000.00
2018
Total Ownership Cost - Salvage Value / Hours = Cost Per Hour to Operate
$535,625.00 $25,000.00 11,508 $44.37
Village of Mount Prospect
Fire Department
INTEROFFICE MEMORANDUM
TO: FIRE CHIEF BRIAN LAMBEL
FROM: DEPUTY CHIEF JOHN DOLAN
DATE: OCTOBER 4, 2018
SUBJECT: ENGINE 517 REPLACEMENT
Background:
The Fire Department is scheduled to replace our 2003 Pierce Quantum Pumper 517
(Reserve Engine 13) in 2018. This apparatus has over 108,000 miles, over 11,500 hours
logged, and its current condition and maintenance records indicate replacement is
warranted. Fire engines generally remain in service for 15 years; ten as frontline and five
in reserve status. 517 was frontline for almost 13 of its 15 years in service. Responding
to approximately 2000 calls per year, this apparatus has met its useful life expectancy
and extending its use will result in increasingly higher maintenance costs. Careful
consideration has been given to designing a vehicle that fits the current and future needs
of the community. 517 is a Quantum style pumper which hasn't changed in 15 years. Our
engine inventories have increased considerably in the last 15 years, we now carry more
equipment than ever before. Driven by our cancer prevention campaign, we've adopted
the clean cab isolation policy and now require additional space for decon kits. We've
added Active Shooter protective gear and carry more EMS and Rescue equipment such
as; portable extrication tools, isolation kits, Rapid Intervention Team packs, scene lights,
cardiac monitors, larger fans, Rescue Jack, additional large diameter hose and
associated appliances. The apparatus committee identified these needs in the last Engine
purchase (516) and over the last several months, the Pierce Dash CF has performed well
and has all the features recommended for today's fire apparatus.
General Bid Information and Budget Impact:
This Engine would be purchased from Pierce Manufacturing through Global Emergency
Products. Our last five fire apparatus purchases (four pumpers, as well as our current
tower ladder truck) have been from Pierce Manufacturing. We consider Pierce vehicles
as well as their service to be unmatched. As members of the Houston -Galveston Area
Council Cooperative Purchasing Program, we are assured competitive pricing through
volume purchasing and discounts. HGAC pricing has been awarded through a public
competitive process and has been utilized by at least seven of our surrounding
communities for recent fire apparatus purchases. The budgeted amount of this vehicle is
$625,000.00 however due to the new pumper design and recent tariffs imposed on steel
and aluminum, the cost of replacing 517 with a similar vehicle is higher than anticipated.
The total cost is $682,158.00. With a 100% pre -payment final cost will be $662,720.00.
The estimated re -sale value of the current 517 is $25,000 to $50,000.
Recommendation:
Staff recommends acceptance of the Global bid through the HGAC for an amount not to
exceed $682,158.00.
Attachments:
PIERCE MANUFACTURING INC.
. ...... . ...............
AN OSHKOSH CORPORATfCN COMPANY ISO 9001 CERTIFIED
2600 AMERICAN DRIVE
POST OFFICE BOX 2017
APPLETON, WISCONSIN 54912-2017
920-832-3000 • FAX 920-832-3208
www,piercemfg,com
March 20, 2018
Pierce Customers:
Md
President Trump imposed tariffs of 25% on steel and 10% on aluminum, imported from countries outside North
America. While Pierce procures all aluminum and steel from North America and Europe, the tariffs have
impacted prices on all steel and aluminum, regardless of origin, resulting in significant cost headwinds for
United States specialty vehicle and heavy equipment manufacturers.
Over the last few months, prior to the communication of the tariffs, steel and aluminum prices have risen 25-
35% and 15-20% over 2017 prices, respectively. Pierce has absorbed these escalating raw material costs to
date. Now amplified by the tariffs, this additional sharp acceleration in commodities pricing has required Pierce
to implement a surcharge on all purchase orders placed on, or after, May 1, 2018, for new fire apparatus and
aftermarket parts. The surcharge will also apply to stock trucks completed on or after May 1, 2018. Stock
trucks completed before May 1, 2018 will not include a surcharge. As an indication of the pervasive nature of
these tariffs, component suppliers have already begun contacting Pierce to discuss their own surcharges. You
may recall, Pierce faced a similar situation in the early 2000's when President Bush levied tariffs on steel, and
was forced to implement a surcharge at'that time.
The commodity surcharges are product specific (applied as a percentage of the apparatus price), varying in
proportion to the steel and aluminum content for each specific product type.
Pierce will continue to monitor and evaluate the cost of steel and aluminum and re -assess the surcharge as
market conditions dictate,
Please feel free to reach out to your sales representative with any additional questions you may have.
Sincerely, ,
/0�jw all le --
Mike Dufrane
VP of Sales & Marketing