Flexible specifications net considerable cost savings
DEPARTMENTS
DISPATCHES
Fire departments can save thousands of dollars when purchasing new apparatus by developing a flexible set of specifications and seeing how manufacturers’ speculation apparatus or show/demonstration models might satisfy these specs.
By determining the perimeters in which your department’s truck can operate, it’s possible to obtain quality apparatus at considerable savings. The Milwaukie, OR, Fire Department has discovered this flexible option process to be even less expensive than if the apparatus was bid upon.
The process works like this: The fire department prepares a standard set of specifications for a piece of apparatus needed to perform a particular function. Once the specifications are complete, the major components are scrutinized for allowable variables. For example, we want a 1,500-gpm, single-stage pump. Will a 1,250-gpm pumper do? Will a double-stage pump do? If we can accept these variables, they are added to the specifications as “flex-options.”
Once the specifications are complete with all flex-options listed, we ask vendor representatives what they have available or what they know the factory will be turning out in the near future as speculation or demonstration models. It’s amazing how cooperative vendor representatives are at the possibility of making a quick sale.
The competitive bidding process was originally established to provide the public with the greatest dollar benefit for taxes spent. However, many state and local competitive bidding laws allow for the public jurisdiction to waive the competitive bidding process if this will result in substantial cost savings. When you are able to accurately document such a savings, a waiver is practical and advisable. However, do not be surprised by vendor complaints to the City Council Review Board if a waiver used. Manufacturers may feel slighted that they did not have an opportunity to bid.
The Milwaukie Fire Department has been most successful with the flex-option purchasing process. About two years ago, the city of Milwaukie wanted to purchase new pumper. Specifications were drawn up and flex-options noted. We wanted basic custom 1,500-gpm pumper with a 500-gallon tank, 6V-92TA diesel and automatic transmission. We bought a 1,250-gpm commercial chassis pumper with 750-gallon tank, 6V-92TA diesel, automatic transmission and transverse top mount panel at an estimated savings of almost $25,000. The new apparatus was manufactured by a reputable company that built it for a fire chief’s convention/exhibition. Because the pumper was a show model, everything on it was deluxe instead of standard. Milwaukie obtained new warranties and many “extras” (more chrome, floodlights, etc.) that would not have been on a custom pumper because of cost considerations.
Earlier this year, Milwaukie again wanted to purchase a new pumper, this time with a mounted ladder tower. Again, the flex-option specification format was used. In this instance, the demonstration model purchased met almost all the department’s initial specifications without considering any flex-options. The city received all new warranties on apparatus and equipment and saved approximately $35,000 by comparison with a similar pumper that was recently bid upon.
Manufacturers are more than willing to work with the fire department on inspections, performance and acceptance tests, and in presenting purchase packages to the City Council.
I strongly suspect that if more fire departments are., flexible in their apparatus requirements, manufacturers will be more willing to speculate on the manufacture of apparatus and consequently be able to maintain production during slack periods. This would help curtail dramatic cost increases and shorten detimes.
