Secret Supplier Agreements Helping to Keep Apparatus Prices High

1 month ago
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"Supply Agreement" means any contract, arrangement, or understanding (written or oral) between the bidder, manufacturer, dealer, subcontractor, or their affiliates and a supplier that affects pricing, sourcing, or availability of Customization components.

SECTION [X]: DISCLOSURE OF SUPPLIER AND SUBCONTRACTOR AGREEMENTS AFFECTING CUSTOMIZATION COSTS
1. Definitions
"Customization" includes but is not limited to:

Electrical/lighting: Sirens, scene lights, warning systems, or appliance brands (e.g., Whelen vs. Federal).

Body/paint: Non-standard colors, graphics, or corrosion-resistant coatings.

Tank/pump systems: Capacity (e.g., 500 vs. 750-gallon tanks), material (poly vs. stainless steel), or pump manufacturer (Hale vs. Waterous).

Other: Seating (USSC vs. Havis), tool mounts, or safety systems (e.g., RollTek).

"Supply Agreement" means any contract, arrangement, or understanding (written or oral) between the bidder, manufacturer, dealer, subcontractor, or their affiliates and a supplier that affects pricing, sourcing, or availability of Customization components.

2. Mandatory Disclosure Requirements
Bidders must disclose:
a. All Supply Agreements impacting Customization, including those held by:
i. The manufacturer or its parent company.
ii. The dealer or its subcontractors.
iii. Second/third-tier suppliers (if known or reasonably discoverable).
b. For each agreement:
i. Parties involved (e.g., "Dealer X has exclusivity with Supplier Y for poly tanks").
ii. Key terms (e.g., "5% cost penalty for non-approved pump brands").
iii. Financial incentives (e.g., "2% rebate for using Supplier Z’s lighting").

3. Subcontractor Transparency
If any Customization work is subcontracted, the bidder must:
a. Identify the subcontractor and their role (e.g., "Subcontractor A installs Whelen lighting per Dealer B’s agreement").
b. Disclose whether the subcontractor is bound by Supply Agreements affecting cost or sourcing.

4. Certification & Penalties
a. Certification: By submitting a bid, the bidder warrants that:
i. Disclosures cover all Supply Agreements at every tier of the supply chain.
ii. No undisclosed agreements exist that could inflate Customization costs.
b. False Certification: Misrepresentation may result in:
i. Immediate disqualification or contract termination.
ii. Debarment from future bids for [X] years.
iii. Liability for costs (e.g., re-procurement, legal fees).

5. Cost Justification & Alternatives
If a Customization request triggers a cost increase > [X]% due to a Supply Agreement, the bidder must:
a. Itemize the markup (e.g., "$7,200 premium for non-contract paint vendor").
b. Provide alternatives:
i. Equivalent components without cost penalties (if available).
ii. A waiver request from the manufacturer/dealer to bypass the agreement.

6. Post-Award Audit Rights
The issuing authority reserves the right to:
a. Audit the bidder’s Supply Agreements for compliance.
b. Require redacted copies of agreements if cost disputes arise.

7. Public Interest Clause
This provision ensures:
a. Fair competition: No bidder gains an advantage via hidden supplier kickbacks.
b. Taxpayer protection: Costs reflect market rates, not artificial constraints.

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