DATE: December 11, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Brock, Assistant City Administrator / CFO
Rocky Garzarek, Fire Chief
Brian Wilcox, Purchasing Manager
SUBJECT:
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Sole-Source Purchase From Stryker Medical Of Portage, Michigan In The Total Amount Of $33,671.90 For One (1) Lifepak 15 Cardiac Monitor / Defibrillator For The Fire Department ($33,000.00 Budgeted In 130-89530-42200 For Fiscal Year 2020).
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Purpose
The purpose of this memorandum is to report the sole-source purchase from Stryker Medical of Portage, Michigan in the total amount of $33,671.90 for one (1) LifePak 15 cardiac monitor / defibrillator for the Fire Department. The purpose of this purchase is to provide for new Engine 7, which is to be stationed at new Fire Station No. 7, to carry this advanced-life-support equipment.
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, 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, Stryker Medical. 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 $33,671.90 for one (1) LifePak 15 cardiac monitor / defibrillator (plus a quoted $5,997.60 for a four-year protection plan to commence one year after purchase of the equipment). 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 2020 included $33,000.00 for this purchase out of the Facilities Tax Fund. The Stryker Medical quoted amount of $33,671.90 is $671.90 (approximately 2%) over the budget amount.
Options
Staff is not aware of any options available to the City for making this purchase.