S21-E29686 - Approve spending authority in the total amount not to exceed $550,000.00 for the purchase of fleet vehicle upfitting services from DANA Safety Supply, Inc. for the Fleet Management Department.
Specific Explanation:
The Director of the Fleet Management Department (FMD) and the Chief Procurement Officer recommend that City Council approve spending authority for the purchase of fleet vehicle upfitting services in the total amount not to exceed $550,000.00 and that authorization is given to issue a purchase order to DANA Safety supply, Inc. for the Fleet Management Department.
The Strategic Procurement Division issued an emergency purchase order (EPO) to DANA Safety Supply, Inc. on September 18, 2020 to address the backlog of the Houston Police Department’s (HPD’s) 2020 fleet replacement vehicles in queue for upfitting. HPD anticipates receiving approximately 140 vehicles as part of the 2020 fleet replacement. The City currently holds an agreement with CAP Fleet Upfitters for upfitting of vehicles including, but not limited to, the installation of lights, consoles, radios, passenger separation barriers, etc. Due to the overall volume of work and the current vendor’s production capacity, it is necessary to engage a second upfitting service in order to put these vehicles in service in a timely manner. FMD engaged DANA Safety Supply, Inc. to receive approximately 50 of the 2020 fleet replacement vehicles to provide additional capacity to the upfitting process and minimize the delay in placing these units into service for HPD. The cost of the upfitting service is $11,000.00 per unit. These services are expected to be complete by February 28, 2021. The Strategic Procurement Division is actively working a new solicitation for the upfitting of vehicles containing the option of multiple awards to ensure adequate capacity by each vendor, thereby minimizing the risks of both overwhelming a single vendor and delaying entry of vehicles into service.
This recommendation is made pursuant to subsection 252.022(a)(2) of the Texas Local Government Code, which provides that “a procurement necessary to preserve or protect the public health and safety of the municipality’s residents” is exempt from competitive bidding.
MWBE Participation:
Zero-percentage goal document approved by the Office of Business Opportunity.
Hire Houston First:
This procurement is exempt from the City’s Hire Houston First Ordinance. Bids/proposals were not solicited because the department is utilizing an emergency purchase order contractor for this purchase.
Fiscal Note:
Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jerry Adams, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
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Estimated Spending Authority:
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Department
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FY 2021
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Out Years
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Total
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Houston Police Department
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$550,000.00
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$0.00
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$550,000.00
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