Title:
Title
Contract Supplement No. 2: On-Site Fleet Parts and Inventory Program [Published for 10-Day Review 06/19/2020]
End
FileID
File ID: 2020-00682
Location
Location: Citywide
End
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 2 to Contract No. 2016-0234 with Genuine Parts Company DBA National Auto Parts Association (NAPA) for on-site fleet parts and inventory program services in an amount not to exceed $6,000,000 for a revised total contract not to exceed amount of $41,600,000.
FileName
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163; Mark Stevens, Fleet Manager, (916) 808-5869, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Contract Supplement No. 2
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has an ongoing requirement for supply parts and manage inventory for a diverse City fleet of over 2,400 vehicles and equipment. This contract is necessary to provide parts for all essential and non-essential fleet units.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56 and Sacramento City Code Section 4.040.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item was published for 10-Day review on
June 19, 2020 as required.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act: No environmental review is necessary because the recommendations in this report involve the purchase of purchase parts and services for City vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: On February 23, 2016, City Council passed a Motion No. 2016-0042 (Contract 2016-0234 / Sourcewell Contract No. 061015-GPC), awarding a five-year contract to Genuine Parts Company DBA National Auto Parts Association (NAPA) for the purchase of on-site fleet parts and inventory program services. NAPA provides a parts management system that is customized to the City, providing access to parts on an as needed basis. This operation removes the upfront expense of investing in parts inventory and does not require staff time for inventory management. Also, NAPA has extensive vendor relationships and buying power which increases parts availability and decreases costs to the City. The Fleet Management Division has determined that, due to a higher rate of utilization than originally anticipated, the current contract authority will be exhausted prior to the end of the contract term and recommends approval of Contract Supplement No. 2 to avoid any disruption in service.
Financial Considerations: Sufficient funds are available in the Department of Public Works, Fleet Management Division’s Fiscal Year (FY) 2020/21 operating budget (Fleet Fund, Fund 6501) to purchase parts and services through June 30, 2021. Purchases made after June 30, 2021, are subject to funding availability in the adopted budget of the applicable fiscal year.
Local Business Enterprise (LBE): Genuine Parts Company DBA National Auto Parts Association (NAPA) is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.