From
Jayson R. Ramirez, Fleet Services Manager
Title
Amendment to the integrated supply agreement with Genuine Parts Co. dba NAPA for on-site fleet parts store management and parts purchases to extend the final renewal option (Renewal #4) with an additional five (5) months and increase the contract value in the amount of $712,500 for a total of $1,912,500 for the final 17 month term through a Master Interlocal Agreement with Sourcewell
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 Sourcewell (formally NJPA). Since this time the City has exercised renewal one, two, and three.
Change order number one increased renewal two by $150,000 changing the total contract value to $1,090,000 annually. This increase was 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 increased the annual contract value in the amount of $110,000 changing the total contract value to $1,200,000 annually.
This amendment will extend the final renewal option (Renewal #4) with an additional five (5) months to better align with the expiration of Sourcewell's contract (July 2020). The contract value of the final term (17-month term) shall be increased by $712,500 for a total of $1,912,500 to cover costs of an extended term, inflation, and growing fleet. See Chart A
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CHART A |
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Start |
Change Order |
End |
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Initial Term |
Year 1 |
15-16 |
$ 940,000.00 |
$ - |
$ 940,000.00 |
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Renewal 1 |
Year 2 |
16-17 |
$ 940,000.00 |
$ 150,000.00 |
$ 1,090,000.00 |
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Renewal 2 |
Year 3 |
17-18 |
$ 1,090,000.00 |
$ - |
$ 1,090,000.00 |
|
Renewal 3 |
Year 4 |
18-19 |
$ 1,200,000.00 |
$ - |
$ 1,200,000.00 |
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Renewal 4 |
Year 5 |
19-20 |
$ 1,912,500.00 |
$ - |
$ 1,912,500.00 |
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Final Term (Renewal #4) Break Down: |
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12 - months |
$ 1,200,000.00 |
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5 - months |
$ 500,000.00 |
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Inflation/Growing Fleet |
$ 212,500.00 |
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$ 1,912,500.00 |
Final Term Value |
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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 Sourcewell (formally NJPA).
Sourcewell contract #061015-GPC was effective 7/21/2015 with a contract expiration date of 07/21/2020 and offers the Fleet-Related Maintenance Equipment, Supplies, Services, and Inventory Management Solutions the City needs.
Financial Consideration
Funds are available in FY 2018/2019 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.