CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Change Order #2 to Contract 17-086B, Fire Engine Replacement and Maintenance Agreement, to MacQueen Equipment, LLC for an amount not to exceed $20,000 and a total award of $763,185
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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 17-086B to Global Emergency Products 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.
Global Emergency Products was later purchased by MacQueen Emergency Group and has been operating under the same contract terms as were agreed upon with Global Emergency Products.
Alongside this contract, the City Council also 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.
These contracts were executed 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 MacQueen Equipment 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 increase the maintenance portion of Contract 17-086B by $20,000 to ensure the vehicles can continue to be maintained and operationally ready. The maintenance package covers all work on the vehicles, including routine maintenance and emergency repairs.
Maintenance costs have exceeded annual projections, resulting in the need for additional funds:
§ 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 outsourcing 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
The Fire Engine Maintenance Agreement is expensed to the Equipment Maintenance account below. For 2026, $0 was budgeted for maintenance contracts. With two and a half years remaining in the contract, this brings the award amount for 2026 to $8,000. Staff anticipates that this overage can be accommodated in the 2026 Budget. Future years will be budgeted appropriately, as needed.
|
Account Number |
Fund Description |
Total Budget Amount |
|
22251100-531303 |
General Fund |
$118,500 |