TITLE
Recommendation to authorize City Manager to increase Blanket Purchase Order Agreement Nos. BPFD14000008 with Bound Tree Medical, LLC, of Dublin, OH, and BPFD14000009 with Life-Assist, Inc., of Rancho Cordova, CA, for emergency medical supplies, by $100,000, for a total aggregate amount not to exceed $300,000 per year, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to increase the existing agreements with Bound Tree Medical, LLC and Life-Assist, Inc., by $100,000. These Blanket Purchase Orders (BPOs) are utilized by the Long Beach Fire Department (LBFD) for the purchase of emergency medical supplies.
Current purchasing guidelines authorize the City Manager to approve purchases up to $200,000 when a competitive procurement process has resulted in three or more price proposals. A formal procurement process was completed in February, 2014, and Bound Tree Medical, LLC, of Dublin, OH (not an MBE/WBE/SBE or Local), and Life-Assist, Inc., of Rancho Cordova, CA (not an MBE/WBE/SBE or Local), were the lowest responsible bidders. Blanket Purchase Orders (BPOs) were issued in July, 2014, pursuant to City purchasing guidelines, in an aggregate amount not to exceed $200,000 per year with the option to renew for two additional one-year periods. The agreements are on the first year of the initial two-year term.
The amount estimated for emergency medical supplies was based on historical expenditures, which had averaged $200,000 per year in the previous agreement. Increases to the current BPOs are necessary due to an increase in the number of Advanced Life Support ambulances in service on a daily basis, a steadily increasing number of emergency medical responses, and increased pricing on most emergency medical supplies compared to the previous agreements. For these reasons, purchasing authority will be exhausted before the BPO renewal date. The requested action is required to authorize additional contract authority of $100,000, taking the total aggregate amount not to exceed to $300,000 per year. This additional purchasing authority is required for this term, and is also being recommended for the renewal periods.
This matter was reviewed by Deputy City Attorney Kendra Carney on March 26, 2015, and Budget Officer Victoria Bell on March 31, 2015.
TIMING CONSIDERATIONS
City Council action on this matter is requested on April 21, 2015, to allow for the continued purchasing of emergency medical supplies.
FISCAL IMPACT
Annual expenditures will not exceed $300,000 and are budgeted in the General Fund (GF) in the Fire Department (FD). There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL DUREE
FIRE CHIEF
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER