From the January 25th village board of trustees meeting for Westmont
d. Purchase Agreement – Fire Truck
Board to consider an ordinance approving the purchase agreement with Macqueen Equipment, LLC for one Pierce Velocity Pumper Fire Engine.
Background of Subject Matter: This contract is to have apparatus and equipment built with Village of Westmont specifications in accordance with state and federal regulations. The purchase price is $1,084,837, with payment made in 3 installments
Type: Ordinance
Documents: MACQUEEN EQUIPMENT BID – DEC 2023.PDF
Excerpts:
2. Purpose
This Agreement sets forth the terms and conditions of MacQueen’s sale of the Product to the Customer.3. Term of Agreement
This Agreement will become effective on the date it is signed and approved by MacQueen’s authorized representative pursuant to Section 22 hereof (“Effective Date”) and, unless earlier terminated pursuanttot h e terms
of thisAgreement, it will terminate upon the Customer’s Acceptance and payment in full of the Purchase Price.4. Purchase and Payment
The Customer agrees to purchase the Product specified on Exhibit A for the total purchase price of $1,172,000.00 (“Purchase Price”). Prices are in US Funds.
NOTE: Upon final inspection at the factory for pick-up or delivery, the customer will need to supply a “Certificate of Insurance” and “FULL PAYMENT” prior torelease of the vehicle, unless prior arrangements for vehicle’s release have been made.5. Future Changes
Various state or federal regulation agencies (e.g., NFPA, DOT, EPA) mayrequire changes to the Specifications and/or the Product and in any such event any resulting cost increases incurred to comply therewith will be added to the 6.
Purchase Price to be paid by the Customer. Any future drive train upgrades (engine, transmission, axles, etc.) or any other specificationchanges have not been calculated into our annual increases and will be provided at additional
cost. The Company reserves the right to update pricing in response to manufacturer-imposed increases as a result of PPI inflation. The Company will document and itemize any such price increase for the Customer’s review and
approval before proceeding. There will be a $10,000.00 cap on the amount of increase resulting from the PPI inflation. Customer shall be notified of any possible increase at least fourteen (14) months prior to anticipated
delivery of the apparatus. Should the customer choose not to accept the pricing update, the customer has the ability to cancel without penalty or cancellation fee.8. Delivery, Inspection, and Acceptance
a . Delivery
Delivery of the Product is approximately 45.5-48.5 months of the Effective Date of this Agreement. Risk of loss shall pass to Customer upon Delivery. Delivery shall be made and title documentation shall pass upon Customer’s complete fulfillment of its obligations arising under Section 4 hereof. Due to global supply chain constraints, any delivery date contained herein is a good faith estimate as of the date of this order/contract, and merely an approximation based on current information. Delivery updates will be made available, and a final firm delivery date will be provided as soon as possible.November 30, 2023
Fire Chief Steve Riley,
Village of Westmont
6015 South Cass Ave
Westmont, IL 60559
Subject: Proposal for one (1) Pierce Velocity Pumper Proposal / Bid # 1154
Dear Fire Chief Riley,
With regard to the above subject, please find attached our completed proposal. Pricing, is as follows, including prepay options.PricingSummary: Sale Price – $1,172,000.00*
*Houston-Galveston Area Council (HGAC) Consortium Pricing 100% Performance Bond:
Should the Village of Westmont elect to have us provide a Performance Bond, $3,311.00 will need to be added to the above sale price.1 0 0 % P r e p a y m e n t O p t i o n :
Should the Village of Westmont elect to make a 100% prepayment at contract signing, a discount of ($116,604.00) can be subtracted from the above “Sale Price” resulting in a
revised contract price of $1,055,396.00 OR $1,058,707.00 with Performance Bond.50% Prepayment Option:
Should the Village of Westmont elect to make a 50% prepayment of $586,000.00 at contract signing, a discount of ($58,302.00) can be subtracted from the above “Sale PricePrepayment Option:
Should the Village of Westmont elect to make a $390,000.00 prepayment by 1/20/2024, another $390,000.00 prepayment by 1/20/2025 and then the remaining balance ($295,222.00 or $298,533.00 with Performance Bond) by 1/20/2026, a discount of ($96,778.00) can be subtracted from the above “Sale Price”Net due prior to vehicle(s) release at the Pierce Manufacturing Plant (Appleton, WI). Net due at Contract signing for Prepay discount to be applicable.
Delivery – 45.5- 48.5 months from receipt and acceptance of contract.
thanks Daniel
#1 by Martin on February 3, 2024 - 10:00 AM
I wonder if truck companies that prebuilt bodies and assembled them on their production lines would effect the market at all.
#2 by Craig Mack on February 3, 2024 - 9:16 AM
Chuck- I read that more as things like the government shutting down businesses and forcing people to be off for 2 weeks.
#3 by Craig Mack on February 2, 2024 - 10:18 PM
Yeah well that’s the whole point… union fire departments don’t want to buy billy bob hector’s discount rig when there’s fellow union craftsmen making the best of the best. If you want it done right, you pay someone properly. That guy that builds them right has to buy gallons of milk and loaves of bread for his family. I don’t know if you’ve been to the store lately, but that’s all doubled . Elections have consequences.
#4 by Chuck on February 2, 2024 - 9:05 PM
“cost increase on labor due to government regulation??” What government regulations increases labor costs – you mean like actually requiring paying somebody a real, living wage to do a job? I’m sure Pierce could pick up and pack off to one of those low labor cost (i.e., NON-UNION) Southern states that seem to be all the rage in American manufacturing – hell, they could probably even manipulate the business side of the tax code so that their move could be written off their bottom line and the taxpayers that are paying for these million dollar apparatus can contribute a few hundred dollars a year more to cover it. I’m sure Jim Joe and Billie Bob in Bumbletree could produce as fine a rig as current Pierce employees after a few hundred tries. And be happy with 18 bucks an hour to do so.
#5 by Craig Mack on February 2, 2024 - 4:31 PM
As much as I hate corporate America juicing everyone- Mike is right. This is true in every single industry out there. This is all ripple effect from the shut downs and then massive inflation. Add to the fact that there’s less kids going in to skilled labor in the last 10 years or so, and you have a recipe for disaster. It’s not going to get better any time soon. I’ve seen some towers and tillers circling the 3 mil range already. And judging by the list of rigs on order on this site, it aint slowing down any time soon. Man…if we could only find a massive group of people that would come here willing to work right now……
#6 by Mike C on February 2, 2024 - 7:45 AM
Chuck & Austin – I’ve been in the industry for nearly 20 years.
First, have you seen the price increase on Cummins engines alone?
Have you seen the price increase on steel, and aluminum?
Have you seen the cost increase on labor due to government regulation amongst other reasons?
So if company overhead is not the customers problem, who pays for building and assembly equipment upgrades, R&D, general day to day expenses???
Plus the manufacturers have to add expenses in for warranties.
How about commission to the dealer?? Have you ever met a wealthy fire apparatus salesman???
Like I said, I’ve been in the apparatus industry for nearly 20 years. I certainly don’t know it all, but I do know for a fact that these manufacturers are not making the profit many may think.
#7 by Austin on February 1, 2024 - 11:58 PM
Mike, there is no engineering with this, it is the same model that has been around for years. The initial cost to develop has long been covered. This isn’t Boeing or Airbus where it takes over 10 billion to make a clean sheet design. This is solely Oshkosh marking up products for bigger profits, for bigger share values. Same as GM, Ford, or any other car manufacture is doing today. You do not go from around 500k to over a million in 5 years, no matter the “macro economic” or “supply chain issues” all of these companies claim. Its cooperate greed, plain and simple. My hang up is not even this, but the time frame.
“Due to global supply chain constraints, any delivery date contained herein is a good faith estimate as of the date of this order/contract, and merely an approximation based on current information.” So they have no firm time frame on when they will get this. They, or any department is better off buying a used apparatus. While still expensive, at least you know when you will get it.
#8 by Chuck on February 1, 2024 - 8:52 PM
Mike, let’s get real. All the engineering is on a CADD system. They can pull up any base apparatus they like and with a bunch of dragging and dropping put this together in a very short period of time. Company overhead? Another not the customer’s problem. Plus a 42 to 48 month delivery date, while apparently the new standard for this builder, is absolutely absurd. This is a sign that somebody is milking its customers royally. The fire service needs to stop desiring such complex apparatus so as to make them unaffordable and unreliable.
#9 by Mike C on February 1, 2024 - 8:04 AM
Definitely crazy priced but the profit margins aren’t what many may think! Just to build the truck is a ton of money! All the engineering associated with it, company overhead, and the warranty results in a lot of money dished out per truck!
#10 by Mike hellmuth on January 31, 2024 - 6:04 PM
One million plus for an engine………CRAZY……………..