|
|
REPORT RAPPORT |
|
DATE:
|
28 July 2014 |
|
TO/DEST:
|
Executive Director, Ottawa Police Services Board |
|
FROM/EXP:
|
Chief of Police, Ottawa Police Service |
|
SUBJECT/OBJET: |
PURCHASE OF POLICE PACKAGE VEHICLES - 2014
|
RECOMMENDATION
That the Ottawa Police Services Board approve the purchase of 37 police package vehicles for 2014 for an amount not to exceed $1,016,601, including taxes.
BACKGROUND
The Police Services Act of Ontario mandates the type of vehicles to be used as general police patrol vehicles. To gain the best pricing on these vehicles, police services across Ontario can purchase their requirements through the Police Cooperative Purchasing Group (PCPG).
The Ottawa Police Service (OPS), 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 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 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.
As of 2012, the Ford Police Interceptor sedan is currently the predominant model used by the OPS as its general patrol vehicle. Also in use within OPS to a lesser degree is the Ford Interceptor Utility. The Utility (which is similar to an Explorer) is more spacious providing increased equipment storage to meet specific operational needs.
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 following acquisition. 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, and
· 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.
The requirement for replacement of marked general patrol vehicles in 2014 is projected to be a total of 37 vehicles (36 sedans and 1 utility). This quantity is lower than the past few years but is fairly consistent with the overall pattern, given the cyclical nature of the replacement strategy. Table 1 shows the number of vehicles ordered in previous years:
Table 1
Replacement of Marked General Patrol Vehicles
|
Year |
Number of Vehicles |
|
2009 |
57 |
|
2010 |
40 |
|
2011 |
58 |
|
2012 |
58 |
|
2013 |
60 |
|
Proposed 2014 |
37 |
Delivery and Warranty Considerations
Ford has begun production of the 2015 model year of both the Police Interceptor sedan and utility. The 2014 replacement vehicles purchased under this request will actually be the 2015 model.
The time frame from order date to delivery is expected to be three to four months. This time frame aligns with anticipated OPS operational requirements. At that time the last of the vehicles from the 2013 vehicle purchase will be upfit and deployed.
Ford Canada has confirmed 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 per unit cost of the 2015 model is actually lower than 2012 and 2013. Ford has increased the PCPG price concession discount for the sedan resulting in a total cost per vehicle savings of $684.84 per unit. In total this means a savings of $24,654 for OPS.
Table 2
Cost Summary Per Vehicle - Sedan
|
Replacement Year |
2011 |
2012 |
2013 |
2014 |
|
Date of Order |
August 2010 |
February 2012 |
May 2013 |
June 2014 |
|
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) |
$ 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) |
$ 32,427.00 $ 1,600.00 $ 100.00
$ 34,127.00 $ ( 7,325.00) |
|
SUB-TOTAL: |
$ 23,638.00 |
$ 27,475.00 |
$ 27,475.00 |
$ 26,802.00 |
|
PST/HST (Not Recoverable) |
$ 416.03 |
$ 483.56 |
$ 483.56 |
$ 471.72 |
|
Total Cost per Vehicle |
$ 24,054.03 |
$ 27,958.56 |
$ 27,958.56 |
$ 27,273.72 |
|
Number of Vehicles Required |
36 |
|||
Table 3 below shows the final per vehicle cost of the 2014 Ford Police Interceptor utility.
Table 3
Cost Summary Per Vehicle - Utility
|
Replacement Year |
2014 |
|
Date of Order |
June 2014 |
|
Base Price Freight Federal AC Tax
Cost Before Discount & Tax Discount |
$ 39,021.00 $ 1,650.00 $ 100.00
$ 40,771.00 $( 6,625.00) |
|
SUB-TOTAL: |
$ 34,146.00 |
|
PST/HST (Not Recoverable) |
$ 600.97 |
|
Total Cost per Vehicle |
$ 34,746.97 |
|
Number of Vehicles Required -1- |
|
The cost of thirty seven (37) police package vehicles is estimated to be $1,016,601 including taxes as summarized below. Funding for this purchase is available and will be drawn from the 2014 Capital Project Account #907487 – 2014 Fleet Program.
2014 Fleet Program Capital Project #907487
Approved Budget to Date $2,850,000
Balance Available $ 2,265,628
This Request $ 1,016,601
Balance Remaining $ 1,249,027
CONCLUSION
Through its Fleet Services Section, the OPS is constantly striving to balance operational needs while exploring opportunities to generate savings.
Acquiring these vehicles through the PCPG will ensure that they were acquired at a competitive price and enable the Board to conduct business in both an economical and an efficient way.
(Original signed by)
Charles Bordeleau
Chief of Police
Responsible for report: Director General Frazer