From
Jayson R. Ramirez, Fleet Services Manager
Title
Change Order No. 1 to the price agreement with Genuine Parts Co. dba NAPA for on-site fleet parts store management and parts purchases in the amount of $150,000 and renewal three in the annual amount of $1,200,000 and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Jayson Ramirez, Fleet Services Manager
Recommended Action
Approve
Analysis
On January 6, 2015 City Council approved a price agreement with Genuine Parts Co. dba NAPA for on-site fleet parts store management and parts purchase up to an annual amount of $940,000 for one year with the option to renew for four (4) additional one-year periods through a national interlocal agreement with National Joint Powers Alliance (NJPA). Since this time the City has exercised renewals one and two.
Change order number one will increase renewal two by $150,000 for up to $1,090,000 annually. This increase is necessary due to parts' inflation, larger fleet and other departments utilizing the contract to purchase miscellaneous items. Due to the increase in annual usage, renewal three will be in the annual amount of up to $1,200,000.
Chapter 271.102 of the Local Government Code authorizes local governments to participate in cooperative purchasing programs with other local governments or local cooperative organizations. In lieu of competitive bidding, items and services may be purchased through such agreements as they have performed the bidding processes by the sponsoring entities or agencies. The City of Grand Prairie utilizes existing master, inter-local cooperative agreements with various entities including the National Joint Powers Alliance (NJPA).
Financial Consideration
Funds are available in FY 2016/2017 budget 225510-60410 for Fleet Services SC-COGS Parts Inventory and will be charged accordingly on orders through the end of the current fiscal year. Funding is made directly by user departments is available in various departments operating budgets and will be charged accordingly on orders through the end of the fiscal year. Any overages will be covered by savings in other account lines. Funding for future years will be paid from that year's approved budgets.