DATE: September 27, 2016
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 Physio-Control, Inc. Of Redmond, Washington In Total Amount Of $47,253.15 ($14,742.75 In FY2017 And $16,255.20 Per Year In FY2018 And FY2019) For Three Years Of Annual Maintenance And Technical Support For City’s Inventory Of Lifepak Cardiac Monitors And Automated External Defibrillators (AEDS) For The Fire Department ($23,000 Budgeted In 110-82620-42200 For Fiscal Year 2017; Contract No. 2016-0239)
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Purpose
The purpose of this memorandum is to report execution of City Contract No. 2016-0239 with Physio-Control, Inc. of Redmond, Washington for the sole-source purchase in the total amount of $47,253.15 for annual maintenance and technical support for inventory of LifePak cardiac monitors and automated external defibrillators (AEDs) for the Fire Department. The purpose of this purchase is to continue the maintenance agreement for service for this equipment and thus keep it in excellent working condition.
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): Repairs to, maintenance of, licenses for and/or maintenance agreements for products already in use by the City, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City, 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 the annual maintenance and technical support for the City’s inventory of LifePak cardiac monitors and AEDs 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:
• Because the Franklin Fire Department is under the medical direction of Williamson Medical Center, and because the Fire Department’s cardiac monitors and defibrillators must communicate with Medical Center technology, and because the Medical Center utilizes the LifePak brand of AEDs on its fleet of ambulances and pads connected to the defibrillators must be interchangeable for all defibrillators that communicate with Williamson Medical Center, LifePak is the only brand of cardiac monitors and defibrillators that the Fire Department is able to utilize.
• Annual maintenance and technical support for the LifePak brand cardiac monitors and defibrillators is available only direct from the manufacturer, Physio-Control, Inc. The manufacturer has stated in writing that it is the sole provider in the Franklin marketplace for sale of the LifePak brand cardiac monitors and defibrillators, and for maintenance and technical support service agreements for the LifePak brand equipment.
Financial Impact
The value of the purchase equals $47,253.15 for ($14,742.75 in FY2017 and $16,255.20 per year in FY2018 and FY2019) for three years of annual maintenance and technical support for City’s inventory of LifePak cardiac monitors and AEDs. The sales representative for the manufacturer has indicated in writing that the quoted pricing represents the best 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 2017 includes $23,000 for purchase out of the General Fund of equipment repair and maintenance services.
Options
Staff is not aware of any options available to the City for making this purchase.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of sole-source purchase from Physio-Control, Inc. of Redmond, Washington in the total amount of $47,253.15 for three years of annual maintenance and technical support for City’s inventory of LifePak cardiac monitors and AEDs for the Fire Department. Purchasing Manager Brian Wilcox is of the opinion that the sole-source nature of the purchase appears to be justified. Pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2016-0239 has been executed by the City Administrator and is attached.