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REPORT RAPPORT |
DATE:
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27 May 2013 |
TO/DEST:
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Executive Director, Ottawa Police Services Board |
FROM/EXP:
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Chief of Police, Ottawa Police Service |
SUBJECT/OBJET: |
PURCHASE OF POLICE PACKAGE VEHICLES - 2013
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RECOMMENDATION
That the Ottawa Police Services Board approve the purchase of 60 police package vehicles for 2013 at a cost of $1,677,514.
BACKGROUND
The Ottawa Police Service, along with a number of other police services throughout Ontario including the Toronto Police Service and the Ontario Provincial Police, participate each year in the Police Cooperative Purchasing Group (PCPG). The aim of the PCPG is to combine the purchasing power of its members with the goal of achieving bottom-line budget savings in the acquisition of goods and services.
The PCPG Fleet Sub-Committee, of which the OPS Fleet Services Manager Staff Sergeant Neil Preston is a standing member, develops specifications for full-size, mid-size and four-wheel drive police package vehicles and establishes standing offers for these purchases. The PCPG posts tender information on the Ontario Association of Chiefs of Police (OACP) web site for the benefit of all members.
The Police Services Act of Ontario mandates the type of vehicles to be used as general police patrol vehicles.
As of 2012, the Ford Police Interceptor (Taurus) is currently the predominant model used by the OPS as the general patrol vehicle. The Ford Police Interceptor replaced the Crown Victoria Police Interceptor (CVPI) in 2012 after it was discontinued by Ford following 2011 model year production.
DISCUSSION
Replacement Planning
To determine the number of replacement vehicles to order, Fleet staff reviewed the maintenance data for vehicles currently in the OPS fleet. In the case of general patrol vehicles which are, for the most part, assigned to Platoon and District functions, those which have been in service for three years or more, or have reached 160,000 kilometres, are candidates for replacement.
Fleet Services has a deployment strategy for the replacement vehicles acquired through the PCPG program. It identifies the sequencing and timing for the older vehicles that will be de-commissioned and the new vehicles that will be put into service. Development of the replacement plan incorporates a number of factors, including:
· Degradation of vehicle reliability
· Safety
· Vehicle mileage
· Maintenance and repair costs
· Disposal value.
It is not uncommon for the replacement plan to change given operational needs including factors such as serious vehicle collisions, which can prompt an immediate replacement. In some circumstances, it is possible that the planned replacement of some vehicles will be postponed until the following year. OPS vehicles that are at the end of their lifecycle are sent to public auction and the proceeds are used to help fund the vehicle replacement program.
In general, the three manufacturers “build” only the quantity of police package vehicles ordered by customers and organize their factories for a specific production of police package vehicles. They do not produce and hold an inventory of spare vehicles.
The requirement for replacement vehicles for the marked general patrol vehicles in 2013 is projected to be 60 vehicles. This quantity is fairly consistent with previous years. Table 1 shows the number of vehicles ordered in prior years:
Table 1
Replacement of Marked General Patrol Vehicles
Year |
Quantity |
2009 |
57 |
2010 |
40 |
2011 |
58 |
2012 |
58 |
2013 |
60 |
Associated Costs: Up-fit of Patrol Vehicles
Earlier this year staff developed a mounting solution to safely install the OPS mobile workstation in the Ford Taurus. This configuration is now the OPS standard. Staff reported to the Board on these developments in 25 March 2013. Staff estimate that the cost of up-fitting the 60 new vehicles with the mounting solution will be $705 per vehicle or $42,300.
Delivery and Warranty Considerations
Ford begins production of the 2014 model year in early June 2013. By approving the report this month the OPS will be able to gain a favourable position in the ordering queue when production line assembly commences.
The time frame from order date to delivery for the 2014 model year is expected to be three to four months from date of ordering. This means that the earliest delivery date for an order beginning production in June 2013 is expected to be September 2013.
This time frame aligns with anticipated OPS operational requirements for the replacement of existing police vehicles. Ford Canada has stated that warranty coverage starts when the vehicles are put into service as opposed to the delivery date.
CONSULTATION
Consultation took place with law enforcement services across Ontario and subsequent discussions from PCPG participating partners.
FINANCIAL STATEMENT
The purchase of 60 police package vehicles is estimated to be $1,677,514.
It should be noted that at the time of this report Ford’s pricing is unchanged from last year. As shown in Table 2, the per vehicle cost of the 2012 and 2013 Ford Police Interceptors are the same. The reduced pricing for both years 2010 and 2011 resulted from generous concession allowances from the manufacturer.
Table 2
Cost Summary Per Vehicle
Replacement Year |
2010 |
2011 |
2012 |
2013 |
Date of Order |
March 2010 |
August 2010 |
February 2012 |
May 2013 |
Base Price Freight Federal AC Tax Cost Before Discount & Tax Discount |
$ 35,739.00 $ 1,350.00 $ 100.00
$ 37,189.00 $(13,551.00) |
$ 35,739.00 $ 1,350.00 $ 100.00
37,189.00 $(13,551.00) |
$ 32,100.00 $ 1,500.00 $ 100.00
$ 33,700.00 $ ( 6,225.00) |
$ 32,100.00 $ 1,500.00 $ 100.00
$ 33,700.00 $ ( 6,225.00) |
SUB-TOTAL: |
$ 23,638.00 |
$ 23,638.00 |
$ 27,475.00 |
$ 27,475.00 |
PST/HST (Not Recoverable) |
$ 1,891.00 |
$ 416.03 |
$ 483.56 |
$ 483.56 |
Total Cost per Vehicle |
$ 25,529.00 |
$ 24,054.03 |
$ 27,958.56 |
$ 27,958.56 |
Number of Vehicles Required |
60 |
Funding for this purchase is available and will be drawn from the 2013 Capital Project Account #907072 – 2013 Fleet Program.
2013 Fleet Program Capital Project #907072
Approved Budget to Date $2,850,000
Balance Available $2,282,730
This Request $1,677,514
Balance Remaining $ 605,216
Staff have begun discussions with Ford to seek compensation for the cost of up-fitting the 58 new vehicles purchased in 2012 with the OPS mounting solution. The Board will be updated as these discussions progress.
CONCLUSION
Fleet Services is constantly striving to balance operational needs with fiscal responsibility, while exploring opportunities to generate savings. Acquiring the new patrol vehicles through the Police Cooperative Purchasing Group (PCPG) will ensure that the Board conducts business in both an economical and an efficient way.
(Original signed by)
Charles Bordeleau
Chief of Police
Responsible for report: Director General Debra Frazer