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Date
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April 20,
2009
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Agenda
Item No. 33 Roll
Call No. 09- Communication No.
09-234 Submitted by: Merrill Stanley, Deputy City Manager |
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AGENDA HEADING:
Approving Short Term Renewal Addendum to Fleet Parts
Procurement and Supply Contract with Genuine Parts Company d/b/a/ NAPA Auto
Parts.
SYNOPSIS:
Recommend
approval of short term renewal addendum to the contract for parts procurement
and supply with Genuine Parts Company
d/b/a/ NAPA Auto Parts (Lee Mayer, Vice President, Midwest Division, 2222 East
Douglas, Des Moines, Iowa 50305). The existing
contract will expire on April 24, 2009 and the three-year renewal option will
not be approved. A 90 day extension to the existing contract has been
negotiated with Genuine Parts Company to purchase and supply parts and to
provide full time on-site staffing for the parts operation within the Fleet
Services Division. During the extension
time a Request for Proposals (RFP) will
be issued and responses evaluated. An
increase in parts purchase authority is also requested
as a result of the contract extension and increased parts cost and usage.
FISCAL IMPACT:
Amount:
Estimated $1,250,000
Funding
Source: Equipment Maintenance Center Fund, Fleet
Service Parts, CMO011500, FY09 Operating Budget, page 88.
ADDITIONAL INFORMATION:
The initial contract was for a period of three years
with a renewal provision for up to one three-year term. Staff has been negotiating the terms of a
renewal agreement, but renewal proposals from Genuine Parts Company were not acceptable
to staff. Therefore, the extension is
necessary so that a new RFP may be issued and responses evaluated. During the initial three-year term of the
contract, additional suppliers of similar services have stated their interest
in participating in any future RFPs and providing their services to the City.
In addition to increased staffing costs, parts costs
have risen during the last three years due to an aging fleet and reduced
replacement funding. Also, overall cost increases associated with steel, steel
components, consumables and maintaining a fully automated solid refuse
collection fleet have resulted in an increase in the parts budget. Staff believes the combination of these
factors makes the evaluation of contract pricing very difficult to accomplish
without the presence of competing proposals.
Rising costs, increased parts usage, and the contract extension also
necessitate an increase in the spending authority for parts for the remainder
of the extension period.
PREVIOUS COUNCIL ACTION(S):
Date: April 24, 2006
Roll Call Number: 06-853
Action:
Proposal
for the provision of On-site Fleet Services Part Procurement and Supply
Services and approving contract with Genuine Parts Company, d/b/a NAPA Auto
Parts. (Council
Communication No. 06-215) Moved by Kiernan to approve. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Council
action in July 2009 to award parts contract to successful proposer.