APPARATUS PURCHASING: WHEN VENDORS DO NOT BID
BY BILL ADAMS
The truck committee worked diligently for many months preparing a set of specifications for the department`s new apparatus. After presenting the specs to the Village Board for approval, a date was set for a public bid opening 30 days hence, and the appropriate legal notice was placed in the local newspaper. It was expected that many vendors would be submitting proposals, ensuring that the fire department would receive competitive bids and justify the dollars appropriated for the new vehicle. The week before the bid opening, the chief inquired of the Village and was informed that seven prospective bidders had requested specifications. All appeared to be going smoothly.
At the bid opening, three vendors responded. One submitted a formal proposal; the other two returned the specifications with polite but curt “no, thank you” letters. Four vendors did not reply.
The truck committee and the chief were called to task by the Village Board. The board, demanding to know why only one bid was received, rejected the sole proposal and told the fire department to start all over. Six months of precious time were lost. The department`s aging apparatus had to make do for another year. The membership was disappointed. The chief was irate and made it known far and wide that he was not pleased with the vendors that did not bid. How justified was the exasperated chief?
WHY MANUFACTURERS DO NOT BID
A manufacturer`s representative does not submit a proposal for a multitude of reasons. Prospective purchasers should be aware of the rationale behind a vendor`s decision not to bid.
Time limit. Normally vendors are allowed 30 days to prepare a proposal. In the majority of instances, 30 days is not nearly enough time. As an example, a purchasing authority meets on a Thursday night and decides to hold a public bid opening in 30 days. It may take two or three days for the legal notice to be prepared and submitted to the newspaper. If the paper is a weekly publication, it may take a week and a half to two weeks for the Notice to Bidders to actually be printed. If the vendor is not locally based, he may not be aware of the bid until the notice appears in a newsclipping service, which could take another two or three working days. Should the vendor ask for the specifications to be mailed, additional time would be lost.
It is interesting to note how many purchasing authorities require specifications to be physically picked up, particularly if a nominal specification fee is required to cover copying and administrative costs. That requirement in itself could influence out-of-town vendors not to bother to bid, especially if the vendor has not been invited to a sales meeting with the truck committee.
If the remaining time span encompasses a holiday, the vendor is at yet another disadvantage. It is not unheard of for a vendor to have less than a single workweek to prepare a proposal. With the electronic communication age, transmitting specifications, proposals, and correspondence to and from the local vendor and the manufacturer is instantaneous. However, specifications requiring detailed engineering blueprints, an electrical load analysis, or a computerized weight analysis to be submitted with the bid will require time-consuming direct factory support. The availability of the timely factory support is a factor neither the vendor nor the purchaser can always influence. Purchasers should be cognizant of the extra engineering time that may be required and should allow for it. This is especially true when dealing with customized apparatus.
The vendor or the manufacturer may not understand a portion of the purchaser`s specifications and will ask for a written clarification. Should the clarification require a formal meeting of the full truck committee, an untold amount of time could be consumed. Protocol and, in most instances, law dictate an Addendum to the Specification be published as part of the formal specifications. Purchasers should allow ample time for any such questions to be answered in an expedient manner and forwarded to all bidders who requested the specifications.
Specifications. Probably the most influential factor in determining whether to submit a proposal is the specifications themselves–the written word. Independent fire truck salespersons, vendors, sales representatives, manufacturer representatives, or whatever you opt to call people who sell fire trucks classify specifications in three categories.
–Proprietary. This type of specification is written by the purchaser, usually with the help of a favored vendor, directly and purposefully around one particular manufacturer. The purchaser is sending the loud and clear message “This is the fire truck I want, and this is who I want to build it.” Most other vendors realize that fact and will decline to bid–some respectfully and some by not replying at all. It may not be in their best interests to force an apparatus on a fire department that does not want it. Rocking the boat may jeopardize future business in neighboring communities. In many cases, a truck committee will meet only with the preferred vendor, who, by writing the actual bid specifications, has the inside track. Although every vendor`s objective is to write his specification for a prospective customer, proprietary specifications are a fact of life, and they are seen every day.
A truck committee may tell a vendor to bid it anyhow, take exceptions, and that the proposal will be considered. There are two valid reasons for not doing this, despite the good intention of the committee. First and foremost is the legal factor. Many states require that purchasing made with tax-levied moneys follow a stringent set of legal rules and regulations governing the bidding process. Some require purchasers to accept the lowest responsible bid without exceptions. Others will not allow optional bids to be considered unless they were specifically solicited.
Specification writers should familiarize themselves with applicable governmental regulations prior to, not after, a bid opening. Fire departments that write specifications in good faith can be left high and dry as a result of a legality or technicality in the bidding process of which they were unaware. When working in such a legally regulated environment, most vendors are mindful that what the truck committee and chief say and want hold little ground with attorneys, purchasing agents, and politicians. The chief and truck committee can say anything, but it is the written word that influences a vendor`s actions.
The second reason not to bid a proprietary specification is experience. Many manufacturers find their success rate in submitting a proposal based on a competitor`s specification is somewhere between slim and none. That is a fact both manufacturers and vendors know but do not like to admit. Take into consideration that there may be a small amount of time available to prepare a bid, that you are bidding against a competitor`s specification, and that you know the truck committee wants another manufacturer`s truck. Most sane and rational salespeople would opt to spend their time wisely–someplace else.
–Performance. Some vendors and manufacturers do not like this type of specification because it requires a great deal of work. The purchaser specifies in plain English what he wants, where he wants it, and how he wants it. Rather than detailing the actual dimensions of an equipment compartment, the specification may read, “The compartment shall be large enough to accommodate six five-gallon pails of foam on the floor, two 16-inch smoke ejectors on the bottom shelf, and four 500-watt portable floodlights on the top shelf.” If the equipment does not fit when the truck is delivered, the fire chief says, “Take it back; it`s not built to specs.” That is a terrifying thought to most manufacturers.
The performance specification gives the manufacturer the flexibility to design and build an apparatus around the particular needs of the purchaser. Although the purchaser is relieved from the task of writing detailed technical specifications, there are pitfalls. When writing performance specifications, care must be given not to specify items, features, and accessories that physically will not fit or mechanically will not work. Quite embarrassing is specifying an item that no longer or never has been manufactured. Don`t forget the motor in the specifications, or you may end up with a five-hp gasoline pull-start motor instead of that big diesel one you really wanted. The performance specification forces the vendor and manufacturer to work. If you allow manufacturers sufficient time and they opt not to show an interest, then perhaps they really do not want or deserve your business.
–Open or generic. This type of specification is usually very good or very bad, with no in-between. Experience has shown some generic specifications to be extremely detailed, incorporating performance specification criteria, and yet open enough to allow for a multitude of bidders. Likewise, almost every vendor can tell horror stories of receiving an Invitation to Bid on a generic specification that detailed little more than a big truck that`s red, goes fast, pumps a lot, and carries a lot of hose. Regardless, the generic specification, if written properly, will entice more vendors to respond than will a proprietary specification. A drawback to the generic specification is that larger manufacturers are sometimes reluctant to respond to this type of bid. It is unfortunate but commonly found.
Regardless of whether the truck committee intends to write a proprietary, performance, or generic specification, it is highly recommended that the committee interact with qualified and experienced people from the industry, be they salespersons, professional consultants, or peers. Except for instances where larger departments have full-time personnel who regularly purchase fire apparatus, most departments will need some technical assistance.
NFPA 1901, Standard for Automotive Fire Apparatus, has been revised every five years in the past but is now on a three-year schedule. However, TIAs, Temporary Interim Amendments to the standard, can be promulgated at any time. TIAs are issued when an interpretation is required of a specific part of the standard or when an actual change has been made.
Additionally, who in your fire department is current in state and federal Department of Transportation rules, regulations, and changes?
Equally as important, the outside manufacturers that supply roughly 80 percent plus of the component parts of a fire truck are forever changing, upgrading, and eliminating their parts, pieces, and model numbers.
Whether a fire department or a favored vendor has helped write the specs, the purchaser is the legal entity that officially promulgates them. The bid specifications will more than likely be part of the contractual document. If a mistake is made or something is overlooked and the successful manufacturer builds the apparatus per the specifications, the vendor who helped write the specs assumes no legal responsibility. The manufacturer, having fulfilled the contractual obligation, expects to be paid and should be paid within terms.
Although common sense and a close working relationship with the vendor and manufacturer can resolve most problems, there are instances when an impasse can be reached. The unfortunate result is that the fire department usually ends up with an apparatus it may not want or like and probably will have to live with for several decades.
BILL ADAMS, an active volunteer firefighter since 1962, is the former chief and a member of the East Rochester (NY) Fire Department. A former independent fire apparatus dealer, he is currently employed in product development at General Safety Equipment.
