OPS_BLK_ENG

REPORT

RAPPORT

 

 

 DATE:

 

27 May 2013

TO/DEST:

 

Executive Director, Ottawa Police Services Board

FROM/EXP:

 

Chief of Police, Ottawa Police Service

SUBJECT/OBJET:

PURCHASE OF POLICE PACKAGE VEHICLES - 2013

 

 

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