REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 26, 2023
FROM
MARK MCCULLOUGH Director, Fleet Management
SUBJECT
Title
Contract Purchase Order with Kalmikov Enterprises, Inc. dba Fire Apparatus Solution for Vehicle and Equipment Parts
End
RECOMMENDATION(S)
Recommendation
Authorize the Purchasing Agent to issue a non-competitive Purchase Order with Kalmikov Enterprises, dba Fire Apparatus Solution, for the provision of vehicle and equipment parts, in the annual amount of $250,000, and an aggregate amount not-to-exceed $1,250,000, for the period of September 26, 2023, through September 25, 2028.
(Presenter: Mark McCullough, Director, 387-7870)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Improve County Government Operations.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Fleet Management (Fleet) is an internal service fund, and its operational costs are financed through Board of Supervisors (Board) approved rates charged to customers (departments). Kalmikov Enterprises, Inc. dba Fire Apparatus Solution (FAS) was formerly known as KME Fire Apparatus (KME). Fleet’s total purchases of parts from FAS has been $194,975 from July 2022 to the present date. However, historically, FAS part expenditures have been approximately $250,000 per year. Sufficient appropriation has been included in Fleet’s 2023-24 budget (791 4064) and will be included in future recommended budgets.
BACKGROUND INFORMATION
Fleet provides vehicle and equipment replacement parts for the majority of the County's fleet of vehicles and heavy equipment, which includes FAS and safety vehicles. This is the only vendor authorized to provide replacement parts for KME vehicles and equipment in Southern California.
On August 19, 2014 (Item No. 27), the Board approved Purchase Order No. 150298 with KME for an annual amount of $180,000 and an aggregate amount not-to-exceed $540,000 for the period of August 19, 2014 through August 18, 2017.
On December 20, 2016 (Item No. 45), the Board approved an increase to Purchase Order No. 150298 by $225,000, from $540,000 to $765,000, with no change to the contract termination date of August 18, 2017.
On October 3, 2017 (Item No. 19), the Board delegated authority to the Purchasing Agent to issue Purchase Orders for an annual amount of $250,000, and an aggregate amount not-to-exceed $1,250,000 for the period of October 4, 2017 through August 31, 2022.
On September 13, 2022 (Item No. 33), the Board delegated authority to the Purchasing Agent to issue Purchase Orders for an annual amount of $250,000, and an aggregate amount not-to-exceed $1,250,000, for the period of September 13, 2022 through September 12, 2027. Among the Purchase Orders issued under the delegated authority, Purchase Order No. 4100275601 is currently open and active.
On or about, April 21, 2023, FAS, acquired KME. Approval of the recommended non-competitive Purchase Order for September 26, 2023 through September 25, 2028, for an aggregate total amount not to exceed $1,250,000, will enable Fleet to continue to provide parts and/or service in the most efficient and expedient manner possible. Upon Board approval of this item, Purchase Order No. 4100275601 will be closed, and a new Purchase Order will be created under FAS.
PROCUREMENT
County Policy 11-04 requires departments to seek Board approval when contracting for competitive and non-competitive purchases of goods and services in excess of $200,000 during a single annual period.
FAS is the only authorized provider of replacement parts for FAS equipment in Southern California. Purchasing concurs with the non-competitive justification of only authorized provider in Southern California for FAS vehicle and equipment parts.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on August 22, 2023; Purchasing (Peter Geriguis, Lead Buyer, 387-7854) on August 15, 2023, Finance (Penelope Chang, Administrative Analyst, 387-4886) on August 24, 2023; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on September 11, 2023.