Title
Resolution to Authorize the Purchase of Two Pierce Custom Enforcer Class A Pumper Fire Trucks from Reliant Fire Apparatus Inc. (Sourcewell - $2,365,596.00)
Memorandum
The attached resolution authorizes the purchase of two Pierce Custom Enforcer Class A Pumper Trucks at a cost of $1,182,798.00 each for a total of $2,365,596.00 through the Sourcewell cooperative purchasing program (contract #082025) for use by the Safety Services Area, Fire Department.
Under the Fire Chief’s apparatus plan, once the new pumpers are placed into service, #1064 a 2019 Spartan Custom Pumper and #1065 a 2024 Pierce Enforcer Custom Pumper, will be moved from frontline service to itinerant (reserve) service. Both #1073 and # 1074 which are 2011 Crimson Metro Star Engine Pumpers will be sold at auction.
Pierce Manufacturing Inc. was awarded Contract Number 082025 by the Sourcewell cooperative purchasing program for fire service apparatus. The City’s purchasing unit has reviewed the Sourcewell cooperative purchasing program and found that it meets the requirements of the City of Ann Arbor for competitive and fair purchasing. Reliant Fire Apparatus Inc., Wixom, Michigan, is the approved local vendor for Pierce fire apparatus.
These proposed fire trucks will be equipped with diesel engines incorporating the latest emissions-control technology. While fully electric fire trucks are currently available, the technology remains relatively new, with a limited number of units in active service.
City staff evaluated a fully electric fire truck through a demonstration and obtained pricing for a comparable unit. Based on that evaluation, the parties involved determined that purchasing fully electric fire trucks at this time would present additional operational and financial risk due to the limited performance history of the technology in real-world fire service applications. In addition, the estimated purchase price of a fully electric unit was approximately $850,000 higher than a comparable diesel-powered fire truck.
The resolution includes a build contingency of $22,191.00 to cover potential change-orders during fabrication to be approved by the City Administrator if necessary.
The resolution also includes an approximately 5% Producer Price Index (PPI) inflation protection of $120,000.00 to be approved by the City Administrator if necessary. This (PPI) is due to the unstable economy over the past years and is becoming an industry standard. The manufacturer will evaluate the material cost 14 months prior to the estimated completion date and if the producer price index of components for manufacturing [www.bls.gov Series ID: WPUID6112] (“PPI”) has increased at a compound annual growth rate of 5.0% or more between the month Pierce accepts our order (“Order Month”) and a month 14 months prior to the then predicted Ready For Pickup date (“Evaluation Month”), then pricing may be updated in an amount equal to the increase in PPI over 5.0% for each year or fractional year between the Order Month and the Evaluation Month.
Reliant Fire Apparatus Inc. complies with the requirements of the City’s conflict of interest and non-discrimination ordinances.
Budget/Fiscal Impact: Adequate funding for the purchase of these fire trucks is available in the FY2027 Fleet Services Fund Operations and Maintenance budget.
These new fire trucks will be placed on an 18-year replacement schedule. The Fire Department will have an annual replacement cost of approximately $284,655.00 covering both trucks.
Green Fleet Policy: The Green Fleet Committee approved the need for the replacement of this equipment, that the proposed replacement is consistent with the Green Fleet Policy and recommended the approval of this resolution. The Sustainability and Innovations Manager has concurred with the actions of the Committee.
Staff
Prepared by: CJ Stegink, Fleet Supervisor
Robert West, Interim Fleet, Facilities & Airport Manager
Reviewed by: Mariah Walton, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Fleet & Facilities Unit needs to purchase a replacement fire apparatus for the City’s fleet;
Whereas, Competitive bids were received by the Sourcewell cooperative purchasing program and Pierce Manufacturing Inc. received contract #082025 for fire service apparatus;
Whereas, Reliant Fire Apparatus Inc., Wixom, MI is the approved local vendor for Pierce fire apparatus; and
Whereas, Reliant Fire Apparatus Inc. complies with the requirements of the City’s Conflict of Interest and Non-Discrimination Ordinances;
RESOLVED, That the City Council approves the issuance of a purchase order to Reliant Fire Apparatus Inc for two Pierce Custom Enforcer Class A Pumper Trucks for a total amount of $2,365,596.00 and authorize a build contingency of $22,191.00 to cover potential contract change orders and also authorize a Producer Price Index (PPI) inflation protection of $120,000.00;
RESOLVED, That funds for the purchase of these fire trucks, the build contingency, and Producer Price Index (PPI) inflation protection comes from the FY2027 Fleet Services Fund Operations and Maintenance budget with funds to be available without regard to fiscal year;
RESOLVED, That the fire trucks being replaced (#1073 and #1074) be sold at the next City auction after the asset is removed from service; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution including the approval and execution of change orders within the approved contingency amount.