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HomeMy WebLinkAboutAttachment ACITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To FROM Daniel J. Alfonso, City Manager Annie Perez, CPPO, Director Procurement DATE `SUBJECT REFERENCES: ENCLOSURES: January 4, 2017 FILE Emergency Procurement Lease of Harley Davidson Motorcycles The City of Miami (City) issued Invitation for Bid (IFB) 437315, Leasing of Traffic Law Enforcement Motorcycles, on July 22, 2014. One responsive and responsible bid was received. Pursuant to Resolution 14-033g, the City Manager executed a Lease Agreement with Peterson's Harley Davidson of M;arni, LLC (Peterson's) for the lease of twenty-five (25) Harley Davidson Motorcycles for the City's Po'ice Department, Motorcycle Division (Police). The initiat lease period was for twenty-four (24) months, with the option to renew for one (1) additional twenty-four (24) month period. Prior to contract expiration on November 30, 2016, Peterson's was contacted regarding the City's intent to exercise the option to renew. In the company's ackno4,vledgenent of the City's intent to exercise the option to renew, Peterson's responded with a request to increase the monthly lease amounts, and to add a mileage cap. Although' the IFB and the Lease Agreement did not allow for an escalation of price,' in a good faith effort, Peterson's was contacted by the City's Procurement Department (Procurement) to discuss the company's request. On December 20. 2016, after a lengthy discussion regarding Peterson's request, the City was unable to negotate a favorable agreement regarding the price, for the option to renew period. The City's Motorcycle Division is unique; motorcycles are used for police escorts, patrolling, parades, etc., in addition to being the Officer's only mode of transportation. This tends to increase the average mileage, as well as. wear and tear on the motorcycles. Market research was conducted by Procurement staff to source the industry and to locate a comparable contract that was accessible for these services. None of the eight (8) municipalities contacted met the City's needs. Procurement met with General Services Administration (GSA) and Police to explore the possibility of purchasing the motorcycles via the Florida Sheriffs Association contract, with GSA maintaining the motorcycles over the long term. This was not a viable solution, primarily due to the wear and tear of the motorcycles, and currently, GSA does not have enough qualified mechanics to service the motorcycles. However, as needed, GSA will commit a dedicated staff for routine maintenance. In the interim, Procurement reached out to two (2) other Harley Davidson dealers to request quotes for leasing of the motorcycles. One (1) of the two (2) dealers, Bruce Rossmeyer's Harley Davidson (Rossmeyer's) submitted a quote that would allow the City to perform routine maintenance on the motorcycles, and purchase replacement parts at twenty percent (20%) above cost (plus shipping). This option will help to expedite maintenance, shorten downtime/travel time for the repairs. and lower overall cost to the City. PR 7079 Page 1 ot'2 Notwithstanding the efforts above, the current contract has been extended for one hundred twenty (120) days to allow time for re -procurement. The lead time for the motorcycles from the Harley Davidson manufacturer is between sixty (60) to ninety (90) days. Additional time is also required for the light and radio packages. Since Peterson's is unwilling to hold the current pricing past the one hundred twenty (120) day extension, re -procurement via the IFB process is impracticable. Procurement is requesting, pursuant to emergency procurement procedures, as defined in Section 18-90 of the City Code, authorization to waive a competitive bid process, in order to secure a replacement vendor for the lease of the Harley Davidson motorcycles, The approval of this emergency procurement will allow for continuity of the service. Upon your approval, and pursuant to Section 18-90 of the City Code, Procurement will prepare an item for ratification of this emergency procurement for the next available Commission meeting. Approved Daniel J Alf nager Date: cc: Fernando Casamayor, Assistant City Manager, Chief Financial Officer Rodolfo Llanes, Chief of Police Ricardo Falero, Director, GSA Dr. Lydia Osborne, CPPO, CPPB, Assistant Director, Procurement PR17079 Page 2 of 2