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Agreement with Firetec Used Apparatus Sales <br />September 17, 2012 <br />Page 2 <br />Surplus fire equipment is a specialty item and staff recommends contracting with a specialty <br />broker, rather than a conventional auctioneer that sells to the general public and multiple <br />resellers. Generally, resellers and other third parties bid low in order to resell at a profit. In <br />contrast, the specialty fire equipment market is more competitive and end-users bid closer to <br />market price. Firetec specializes exclusively in fire equipment and sells to local fire agencies, <br />municipalities and counties. Further, Firetec's proposal demonstrates both the greatest level of <br />experience in fire equipment brokered sales and offers the lowest service fee. Based on the <br />evaluation committee's review of the proposals and vendor reference checks, staff rated Firetec <br />as the most qualified, responsible, and responsive proposer. The agreement with Firetec <br />stipulates that the City retains the right to determine which items will be auctioned. Staff <br />recommends approval of the agreement. <br />FISCAL IMPACT <br />Upon sale of the surplus fire equipment, the revenue <br />Replacement Fund (no. 07510002 57972), except for <br />program, as conditioned in the grant. <br />Francisco Gutierrez o <br />Executive Director <br />Finance & Management Services Agency <br />wn <br />e will be credited to the Equipment <br />amounts returned to a grant-funded <br />25E-2