DATE: June 25, 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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*Consideration Of A Contract With Physio-Control, Inc. Of Redmond, Washington In The Total Amount Of $29,515.95 For The Sole-Source Purchase Of One (1) Lifepak 15 Cardiac Monitor / Defibrillator ($30,000.00 Budgeted In 130-83530-42200 For Fiscal Year 2015; Not Currently Budgeted In Fiscal Year 2016; Contract No. 2015-0093) (07/14/15 WS)
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Purpose
The purpose of this memorandum is to request consideration by the Board of Mayor and Aldermen of a contract with Physio-Control, Inc. of Redmond, Washington for the sole-source purchase in the total amount of $29,515.95 for one (1) LifePak 15 cardiac monitor / defibrillator. The purpose of this purchase is to equip Ladder 8, delivery of which is anticipated this summer, with this cardiac monitor / defibrillator.
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 that have, for good and sufficient reason, previously been standardized 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 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 the cardiac monitor / defibrillator 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 purchase represents an expansion of the Fire Department inventory of cardiac monitors and defibrillators.
• 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.
• LifePak brand cardiac monitors and defibrillators are only available 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.
Financial Impact
The value of the purchase equals $29,515.95 for one (1) LifePak 15 cardiac monitor / defibrillator. 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 2015 included $130,000 for Ladder 8 equipment out of the Facilities Tax Fund. Of this amount, $30,000 was allocated for this purchase. The Physio-Control, Inc. quoted amount of $29,515.95 is $484.05 (1.6%) under that budget. Unfortunately, the contract negotiation process took longer than anticipated such that delivery of the product would now occur after June 30, 2015. The Fire Department budget for fiscal year 2016 does not currently include funds for Ladder 8 equipment. An amendment of the City’s fiscal year 2016 budget may therefore be necessary to allocate funding adequate for this purpose and, in particular, for this purchase.
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 consider approving, contingent upon Law Department and City Administrator approval of, a contract with Physio-Control, Inc. of Redmond, Washington in the total amount of $29,515.95 for the sole-source purchase of one (1) LifePak 15 cardiac monitor / defibrillator (Contract No. 2015-0093). Purchasing Manager Brian Wilcox is of the opinion that the sole-source nature of the purchase appears to be justified.