CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Change Order #1 to Contract #17-086A, Fire Engine Replacement and Maintenance Agreement, to Fire Service, Inc. for an amount not to exceed $60,000 and a total award of $753,308
body
DEPARTMENT: Fire Department
SUBMITTED BY: Mark Puknaitis, Fire Chief
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council waived the applicable provisions of the Naperville Procurement Code and awarded Contract 17-086A to Fire Service Inc. on April 18, 2017, for a 10-year term from June 18, 2018, to June 17, 2028. The purpose of this contract was to purchase a fire engine alongside a 10-year maintenance package.
Alongside this contract, the City Council also waived the applicable provisions of the Naperville Procurement Code and awarded Contract 17-086B to Global Emergency Products on April 18, 2017, for a 10-year term from June 18, 2018, to June 17, 2028. A fire engine alongside a 10-year maintenance package was purchased from this vendor as well.
This was done to evaluate the total life cycle costs of the engines and the potential for the City to outsource fire engine maintenance, which at the time was performed in-house by Fleet Services. Fire Services and Global have two distinct cost models of maintenance, one being an upfront not-to-exceed lump sum model and the other being an a la carte model. Both maintenance models have similar service expectations.
DISCUSSION:
This Change Order is requested to award an additional $60,000 to the maintenance portion of Contract 17-086A to ensure the vehicles can continue to be maintained and operationally ready. This maintenance covers all work on the vehicles, including routine maintenance and emergency repairs, and would be expected to cover the annual maintenance costs based on the past 6-years of experience.
The following factors led to our initial estimated maintenance costs being lower than current spend:
• The engine has experienced more than anticipated maintenance issues, such as but not limited to electrical, pump, quality control, brake, and emergency warning light issues.
• In the past 18 months, there have been 27 work orders placed.
• There was no historical data to base the estimates on as out-sourcing engine service and maintenance is a new pilot program.
The result of the pilot study is ongoing, and a detailed comparison will be completed upon the 10-year mark. However, the maintenance demands have exceeded the original estimate on expenditures for the life of the 10-year contract.
The requested Change Order is anticipated to cover ongoing maintenance services through the end of the contract on June 17, 2028.
FISCAL IMPACT:
CIP #: N/A
Maintenance costs for Units 313 and 316 are expensed the account number listed below. Both contracts have exceeded the budgeted amounts for these services in the current year; however, the change order can be accommodated due to underspending for other budgeted equipment maintenance services.
A total of $40,000 is proposed as part of the 2025 Operating Budget for these services. Costs for future years will be budgeted accordingly during the respective budget cycles.
Staff will monitor expenditures to ensure compliance with budgetary guidelines
|
Account Number |
Fund Description |
Total Budget |
|
22251100-531303 |
General Fund |
$106,000 |