DATE: May 20, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Rocky Garzarek, Fire Chief
Todd Horton, Deputy Fire Chief for Administration and Emergency Management
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge report of sole-source purchase from Franklin Plumbing and Heating Co., Inc. of Franklin in the total estimated amount of $25,025 less trade if applicable for improvements to the vehicle exhaust extraction system in place at each of the City's fire stations ($30,000 budgeted in 110-82660-42200 for fiscal year 2015)
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Purpose
The purpose of this memorandum is to report the sole-source purchase from Franklin Plumbing and Heating Co., Inc. of Franklin in the total estimated amount of $25,025 less trade if applicable for improvements to the vehicle exhaust extraction system in place at each of the City's fire stations. The purpose of this purchase is to eliminate the need to operate and replace pneumatic air compressors and thereby reduce the out-of-service time and repair costs of maintaining the system.
Background
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board): Purchases of items necessary to maintain, expand or improve a manufacturer-specific system already in use by the City and that requires interconnectivity of and/or communication between the component parts, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City of Franklin, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
Staff is of the opinion that the purchase of improvements to the vehicle exhaust extraction system already in place at each of the City's fire stations is a sole-source purchase and is a purchase that falls into the category referenced above and anticipated by City Purchasing Policy as not requiring individual authorization by the Board of Mayor and Aldermen. Evidence to support this opinion includes:
· The project consists of supplying, delivering and installing replacement component parts of the existing vehicle exhaust extraction system already in place at each of the City's fire stations. Specifically, Plymovent magnetic hose drops are being installed to replace the existing Plymovent pneumatic hose drops.
· The manufacturer has only one authorized dealer for the sales territory that includes Franklin. That dealer, Franklin Plumbing and Heating Co., Inc. of Franklin, has stated in writing that it is the sole provider in Tennessee for servicing the Plymovent vehicle exhaust extraction system.
Financial Impact
The value of the services rendered equals $25,025 less trade if applicable for improvements to the vehicle exhaust extraction system in place at each of the City's fire stations. Franklin Plumbing and Heating Co. has indicated in writing that the quoted pricing represents the best Tennessee municipal pricing possible at this time and in the foreseeable future for the quantity indicated. Staff is of the opinion that the quoted pricing is within what would be expected in the market place for this industry at this time. The Fire Department budget for fiscal year 2015 allocates $30,000 out of the General Fund for this project. The Franklin Plumbing and Heating Co. quoted amount is at least $4,975 (16.6%) under budget.
Options
Staff is not aware of any options available to the City for making the improvements to the vehicle exhaust extraction system in place at each of the City's fire stations.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report, pursuant to City policy, of the sole-source purchase from Franklin Plumbing and Heating Co. in the total amount of $25,025 less trade if applicable for improvements to the vehicle exhaust extraction system in place at each of the City's fire stations. Purchasing Manager Brian Wilcox is of the opinion that the sole-source nature of the purchase appears to be justified.