Subject:
Title
Third Amendment to the purchase authorization with Genuine Parts Company D/B/A NAPA Auto Parts for a Vehicle and Equipment Parts Management System.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Third Amendment to the purchase authorization with Genuine Parts Company D/B/A NAPA Auto Parts (NAPA) for a Vehicle and Equipment Parts Management System.
Contract 134-0296-PB (PF) in the annual amount of $1,500,000.00, for a revised total contract value of $5,400,000.00 through November 17, 2018.
Body
Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
5.3 Ensure effective and efficient delivery of county services and support
5.4 Strive to exceed customer expectations
Summary:
Approval of this purchase authorization provides a continuation of services for a term of twelve (12) months. This contract is for parts, services and inventory management system provided by NAPA. The management system is an all-encompassing outsourcing of Fleet Management’s parts inventory operations including; staffing, parts procurement and storage, parts delivery to sub-shops, and responsibility for inventory control.
Background/Explanation:
On November 18, 2014, the Board of County Commissioners (Board) approved this purchase authorization. The contract was competitively solicited by the National Joint Powers Alliance (NJPA), a public agency serving as a national municipal contracting organization under the laws of the State of Minnesota.
On April 28, 2015, the First Amendment was approved to provide NAPA the authority to purchase obsolete County Fleet Management parts inventory.
On November 5, 2016, the Second Amendment was approved to extend the purchase authorization through November 17, 2017.
The County continues to see a cost savings from outsourced parts procurement. For Fiscal Year 2017 (FY17), the cost savings was approximately $30,000.00. The total cost avoidance to the Fleet Internal Service Fund for reduced cost allocations due to the single contract was $40,741.00 (Purchasing Department, $11,890.00 and Clerk of the Circuit Court’s Finance Division, $28,851.00).
The vendor’s services have been satisfactory. Therefore, it is recommended that the extension to the purchase authorization be exercised at the terms and conditions as awarded by the NJPA.
Fiscal Impact:
Approved estimated expenditure to date: $3,900,000.00
Twelve (12) month expenditure not to exceed: $1,500,000.00
Total revised estimated expenditure not to exceed: $5,400,000.00
Funding is derived from the Fleet Internal Service Fund and is consistent with the FY18 Adopted Budget.
Delegated Authority:
Authority for the County Administrator to approve and execute the extension for this purchase authorization granted under Code Section 2-62(a).
Staff Member Responsible:
Andrew W. Pupke, Director, Real Estate Management
Joe Lauro, Director, Purchasing
Partners:
N/A
Attachments:
Third Amendment