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Thread: Contract Add-on

  1. #1
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    Default Contract Add-on

    I noticed some builders give you the option of using another departments specs. Has anyone done this ? Is it a way to save you money by getting a truck pretty close to what you want,while all the design and engineering has already been done? Or is it more of an advantage to the manufacturer since all they have to do is build one more truck just like the last one?


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    Forum Member FWDbuff's Avatar
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    Contact the Joppa-Magnolia Fire Company, Harford County Maryland Company 8. I know they tagged on to a Baltimore City Pierce (pumper) order.
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    We've spec'd apparatus' for Department's here.... It pretty much eliminates any variations and Allows the Departments to get exactly what they want when they go out for tender.

    This pretty much gives you a Bid or no bid option

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    The town of Blacksburg, Virginia has a 1000-page bid document that's open to every department in Virginia. It allows you to tag-on to their bid price for anything made by Pierce including Rescues, Aerials, Pumpers, Rescue Pumpers, etc, etc, etc.

    Purchasing off other people's contracts isn't anything new, we hope to do it at the VFD and save ourselves some engineering money.
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    Its not a cost savings thing. If I spec a truck for one department, an identical truck will cost the same for someone else.

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    firepiper1,

    Wouldent there be savings in not having the second truck engineered? There has to be considerable cost involved in drawings and engineering a truck.

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    Quote Originally Posted by Ledebuhr1 View Post
    Wouldent there be savings in not having the second truck engineered? There has to be considerable cost involved in drawings and engineering a truck.
    Unless you are asking for an option that has never been offered before, the trucks have been pre-engineered long before they are offered for sale and will only be reviewed before production.

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    Let's talk fire trucks! BoxAlarm187's Avatar
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    Quote Originally Posted by firepiper1
    Its not a cost savings thing. If I spec a truck for one department, an identical truck will cost the same for someone else.
    Piper, let's speak hypothetically for a minute:

    I am a customer (ABC fire department) that wants to purchase a new pumper. I really like the pumper that XYZ fire department got a year ago, so I call them and ask for a copy of their specs. They send me the spec's electronically, and I use Word's "find and replace" feature to change XYZ to ABC, and send the document out for bids. You return your bid for a certain amount of money, and we enter into an agreement to build said apparatus.

    OR....

    I, as a representative of ABC FD, call and ask permission from XYZ FD to tag-on to their bid, and they say "sure!". So I call you and say, "Hey build me a fire truck just like XYZ's, but paint it yellow like real fire trucks are. Thanks!"

    Am I going to pay the exact same amount of money for each of these rigs?
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    Quote Originally Posted by BoxAlarm187 View Post
    IAm I going to pay the exact same amount of money for each of these rigs?
    Actually, you might pay more in the first scenario. The actual cost to build a rig changes constantly. Look at the price of diesel. To drive a truck from the Florida factory to the Ohio customer costs alot more today than it did 6 months ago. The price of airline tickets to get to the factory for the precon and final inspection can change day to day. If XYZ dept bought a rig in June and Allison announces a price increase for January, you are going to pay more for the same truck. I know a department that was looking at a PolyBody. From the time the sales rep gave his first "guess-timate" to the actuall proposal, the cost of the body went up over 10% due to the rise in oil prices.

    That is why manufactures put an expiration date on their proposals. Mine are usually 90 days after submission to the dept.

    If you can tag onto an order when it is placed, both departments might get a bit of a break. Placing two separate orders a few months apart is not going to save you money. If it did, I would sure hate to be the first department in my area to buy ANYTHING!
    Last edited by firepiper1; 04-13-2008 at 10:04 AM.

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    If a tag-on order is used with a large metro order does the ad-on dept separate price or do they get the multi-unit discount that the metro dept is getting?

    One way that standardization can save money is less buying another's exact truck and ensuring that if you can live with the builders standardized compartment sizes and set-ups. If you ask for a compartment size arbitrarily you may be getting a custom body vs. their standard. On a straight forward pumper it may be wise to look at adapting your needs to a companies standard spec truck vs. designing it from the ground up. Other builders build each truck from the ground up so this would not be a factor.

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    Quote Originally Posted by firepiper1 View Post
    If you can tag onto an order when it is placed, both departments might get a bit of a break.
    What would the savings be (in percentage) of a 2 truck order vs. a single truck order?

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    I could be wrong but if a department put out a bid for multiple pumpers those trucks would be less per truck then an order for 1 truck depending on how many units were ordered right ? So if my department tagged onto an order for say 40 pumpers would our 1 pumper cost the same per truck ? or would it cost the same as just ordering one truck ?

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    If you can tag onto an order from a larger department from the beginning you can save a ton of money. But you have to be happy with the big departments specs. Changing even a minuscule option will affect your price and start costing you alot.

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    Quote Originally Posted by Command6 View Post
    What would the savings be (in percentage) of a 2 truck order vs. a single truck order?
    If I produced a set of truck specs, then used those specs as a template for another city's rig, the price would be the same. I am not sure what price break a department gets for ordering 2 or more identical rigs. There are alot of variables involved that us lowly reps have no contol over.
    Last edited by firepiper1; 04-13-2008 at 06:29 PM.

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    We have done it over here in Aus, NSWFB were building several hundred pumpers so my volly department tagged on 3 or 4 every year at the exact same spec, and we paid the contract price, as everything was tooled for the large order and the builder had to change nothing, and due to the large volume being built the price was a LOT cheaper than if we had walked in off the street. As an example another state tagged on to the build but wanted several changes, last I heard it added nearly 50,000 to the build price of each rig they bought.

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