Broken Arrow City Council
Meeting of: 10-3-23
Title:
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Approval of and authorization for the Fire Department to purchase two (2) Pierce fire apparatuses from Conrad Fire Equipment, Inc. pursuant to the Houston-Galveston Area Council (HGACBuy) contract, using the "prepay" option
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Background:
The Fire Department is requesting to purchase two (2) fire apparatuses. Fire truck manufacturers estimate that a new apparatus ordered today would be ready for delivery in thirty-six (36) months. Pierce has forecasted that they will increase prices by five (5) percent at the end of October. This price increase will raise the purchase price of the two apparatuses by approximately $87,000.
H-GAC's Cooperative Purchasing Program, known as HGACBuy, was established pursuant to Texas Interlocal Cooperation Act. The Act allows local governments and certain non-profits to contract or agree under the terms of the Act to make purchases or provide purchasing services and other administrative functions appropriately established by another government entity.
At the July 17, 2018, City Council Meeting, the Council approved of an Interlocal Contract (ILC) between the City of Broken Arrow and HGACBuy and gives the City access to HGACBuy contracts. By entering into this agreement, the City was able to verify that H-GAC's competitive bidding processes are in accordance with Oklahoma State Competitive Bid Act and City purchasing requirements.
Pierce manufacturing routinely secures a loan to build each apparatus. The interest from that loan is passed along in the final purchase price of the vehicle if payment is made upon delivery. Pierce offers a "pre-payment discount" if payment is made upon ordering the vehicle, since the loan interest can be avoided. The combined prepayment discount for these Pierce apparatuses is $219,773.26. The funds for this purchase are currently available should Council choose to accept the "pre-payment discount". If the City chooses to prepay, Conrad Fi...
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