DATE: July 13, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Rocky Garzarek, Fire Chief
SUBJECT:
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Contract with Physio Control for purchase of LifePak 15 cardiac monitors COF Contract No. 2018-0126
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning report execution of City Contract No. 2018-0126 with Physio-Control, Inc. of Redmond, Washington for the sole-source purchase in the total amount of $212,985.80 for six (6) cardiac monitor/defibrillators which were needed to replace six (6) existing LifePak 12 cardiac monitor/defibrillators that have reached their end of support limit.
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.
The fire department currently operates nine (9) cardiac monitor/defibrillators. Six (6) of these monitors have reached their end of life cycle and are no longer supported by Physio Control for testing and repair.
Financial Impact
The value of the purchase equals $212,985.00 for six (6) LifePak 15 cardiac monitor/defibrillators. 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 2019 includes $228,000 for replacement cardiac monitors out of the General Fund. This represents a 6.58% budget savings.
Recommendation
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City Contract No. 2018-0126 was executed with Physio-Control, Inc. of Redmond, Washington, as a sole-source purchase in the total amount of $212,985.80 for six (6) cardiac monitor/defibrillators, is attached.