|
||||
|
Date
|
June 22,
2009
|
||
|
Agenda
Item No. 39 Roll
Call No. 09- Communication No. 09-401 Submitted by: Merrill Stanley, Deputy City Manager |
||||
AGENDA
HEADING:
Approving
the selection of Genuine Parts Company d/b/a NAPA Auto Parts for parts
procurement, on-site operations and related services.
SYNOPSIS:
Approving
the selection of Genuine Parts Company d/b/a NAPA Auto Parts, Lee Mayer, Vice
President, Midwest Division, 2222 East Douglas, Des Moines, Iowa 50305, to
provide Fleet parts and related services and approving the City Manager to
negotiate a contract to be approved by the Legal Department and executed by the
Mayor. The contract will be for one three-year period, with the option
for one three-year renewal.
FISCAL
IMPACT:
Amount: Estimated
$3,000,000 annually
Funding Source: FY2009-1010 Equipment Maintenance Center Fund,
Fleet Services Parts, IS010, CMO011500, Operating Budget, page 52.
ADDITIONAL
INFORMATION:
NAPA Auto Parts has successfully provided parts procurement
and supply services to the City since April 2006, under contract to provide all
staffing and related services to Fleet Services for vehicle and equipment
parts. The initial contract was for a period of three years with a renewal
provision for up to one three-year term.
At the end of the initial three year period, staff negotiated terms of a
renewal agreement, but renewal proposals from NAPA Auto Parts were not
acceptable to staff. Therefore, a new
RFP was developed and issued.
Two proposals were submitted and reviewed by the
evaluation committee. The proposal from NAPA Auto Parts was determined to be
the better response, based on evaluation criteria, and resulted in a lower cost
proposal than the one last considered during renewal negotiations. Total 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. The NAPA Auto Parts proposal and resulting
contract will provide parts at cost plus 7% and tires and fluids at cost plus
5%, will cap annual staffing costs annually for the length of the contract and
any renewal, will limit operational expenses to the contractor’s actual costs, and
will include performance benchmarks and increased performance monitoring over
the previous contract.
Proposed parts costs, staffing and operating costs
were compared to projected costs of a City managed operation. The proposed
contracted costs were less than City managed costs, due to lower staffing costs
and inventory carrying costs.
PREVIOUS
COUNCIL ACTION(S):
Date: April 20, 2009
Roll
Call Number: 09-650
Action: Approving Short-term
renewal addendum to contract for on-site fleet services parts procurement and
supply services with Genuine Parts Company d/b/a NAPA Auto Parts. (Council
Communication No. 09-234) Moved by Vlassis to approve. Motion Carried 7-0.
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