1. #1
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    Default Long Term or Renewable contract for Engines?

    Currently our bid price for apparatus is good for only one year from notice of award. Is it common for Departments to have a three year contract for apparatus or maybe a annual renewable contract with a maximum life,say five years total?

    To avoid having to rebid apparatus every year I am researching the feasibility of asking for a annual renewable contract with a cap on the price increase allowed at each renewal.

    Have any of you done this and would you be willing to share the specs with me?

    Thanks for your time.
    Lt. Dan

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    It's my understanding that this happens quite a bit. It might be a 5 year contract but there is usually an anuual increase on the on the contract price from my understanding. I believe the manufacturer also puts in clause that any federally mandated items are above and beyond the contract price. For example, If a department has been in a contract for the last two years, the 07 emission engine price increase that just occurred would be above and beyond the contract price.

    This is my understanding of how that works. Anyone else?

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    Our career department paticipates in a program like this. We bid pumpers every five years ... with the option to renew the contract each year within the five-year period. We've been doing this for a decade now, and it works very well.

    One department hear in Virginia recently adopted a 10-year contract (renewable annually) for pumpers, tankers, tower ladders, aeriels, and brush trucks through one vendor, and it's open to all municipalities in the Commonwealth to tag on to. This could prove to be a real cost savings for a lot of departments.

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    Quote Originally Posted by BoxAlarm187 View Post
    Our career department paticipates in a program like this. We bid pumpers every five years ... with the option to renew the contract each year within the five-year period. We've been doing this for a decade now, and it works very well.

    One department hear in Virginia recently adopted a 10-year contract (renewable annually) for pumpers, tankers, tower ladders, aeriels, and brush trucks through one vendor, and it's open to all municipalities in the Commonwealth to tag on to. This could prove to be a real cost savings for a lot of departments.
    Thanks for the info. Who is the manufacturer and can I have a contact at the Department?
    Lt. Dan

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    I agree with most here that many places like us have gone to long term or renewable contracting with the understanding that there will be standard price increases over the period that are normal.The tag along feature also benefits multiple municipalities.

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    Default Multi-Year Purchases

    There are a number of cities that have done multiple year contracts and one is Riverside County California Fire Department which did an RFP for Custom MF (Multi-Functional) Engines that could combine all of their Type I & 2 Engines to respond to any type of call and was awarded to Smeal Fire Apparatus Co.

    They issued an RFP for Three (3) Years that had a fixed price increase per year based on component increases and or any desired changes requested. It worked well enough that they bought about 60+ Engines including "Tag On's" by other agencies in California.

    Many FD's are entering into the multi-year contracts to not only know their costs per year for apparatus but also avoid the hassle and work involved in doing a new spec each year and going through the bid process. It's also a very popular concept in California and other states to do "tag on"s to avoid the work involved and in Texas FD's purchase apparatus through HGAC which charges a small fee for their paperwork but again allows a FD to avoid the work of doing a spec and going through the process and they are allowed I think to modify the price up to 25% of the specific apparatus they want to tag on to so as to allow changes to meet their specific needs.

    It's a great way to buy apparatus for both the FD and the dealer and OEM lucky enough to get the contract..

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