REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Blanket Purchase Order to Priority 1 Public Safety Equipment, Inc. for Building and Equipping Public Safety Vehicles (F20-124)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance a blanket purchase order to Priority 1 Public Safety Equipment, Inc. of Belmont, CA in the amount of $450,000 for removal and installation services of specialized equipment within Public Safety vehicles for a one-year period. Approval is also requested to authorize the City Manager to amend and renew the purchase order for two additional one-year periods, subject to available budget, if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Further, Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitations of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Fleet Maintenance program requires that vehicles and equipment be maintained and replaced before operating costs become excessive. One method of success for this program is to provide scheduled replacement of vehicles. A component of that method is to provide cost effective services and solutions for specialized outfitting for specific vehicle needs.
Priority 1 Public Safety Equipment, Inc. (Priority 1) is a full-service installation facility that provides specialized equipment for police vehicles critical to Public Safety operations. Priority 1 provides a cost effective and high-quality outsourcing solution for the fleet maintenance operations support of Public Safety vehicles. Priority 1 has provided contractual support for many years to the City and has maintained consistent productivity levels, while meeting and or exceeding the operational demands for equipment uniformity and operator safety standards, allowing vehicle and equipment maintenance operations to be performed seamlessly.
Based on Priority 1 current level of service, material, lead time, and pricing, and in consideration that there are no other local vendors that can provide this same level of support, staff is recommending a competitive exemption from the solicitation process as a competitive process would not likely identify a competitor in this area. Therefore, staff is requesting a one-year purchase order and for the City Manager to be authorized to amend and renew the purchase order for two additional one-year periods, not-to-exceed budgeted amounts, if pricing and service remain acceptable to the City.
FISCAL IMPACT
Funding for this purchase order is available in the Fleet, Fuel and Equipment Program, in the Department of Public Works and the Fleet Equipment Replacement Fund. These sources are funded by the General Services Fund-Fleet Services Sub-Fund. Funding is provided through Internal Services charges from the various affected departments based on equipment used. This contract will provide sufficient funding capacity to build out the sixteen new police vehicles that are currently on order.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety; and by making the agenda and report available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a blanket purchase order to Priority 1 Public Safety Equipment, Inc. for building and equipping Public Safety vehicles, in substantially the same form as Attachment 1 to the report, in the amount of $450,000; and
- Authorize the City Manager to amend and renew the blanket purchase order for two additional one-year periods, subject to available budget and acceptable pricing and services.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Phan S. Ngo, Chief Public Safety
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Blanket Purchase Order