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