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CONSIDERATION OF ACCEPTANCE OF REQUEST FOR PROPOSAL RFP-1617-22 FROM GENUINE PARTS COMPANY D/B/A NAPA AUTO PARTS TO PROVIDE VEHICLE AND EQUIPMENT PARTS MANAGEMENT AND SUPPLY SERVICES FOR THE FLEET DIVISION AND APPROVAL OF CONTRACT K-1617-110 TO BE EFFECTIVE APRIL 1, 2017.
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BACKGROUND: On April 8, 2014, City Council approved Contract K-1314-134 with NAPA Integrated Business Solutions (IBS) to provide an in-house parts management service for the City's diverse fleet of vehicles. After three years of operation, NAPA continues to provide a cost saving solution for the fleet by providing a full service parts department dedicated to the Fleet Division. The City's fleet of vehicles consists of 895 vehicles and other pieces of equipment. This wide variety of equipment includes heavy duty trucks, street sweepers, tractors, refuse trucks, light duty cars, trucks, police, fire, and mowing equipment. NAPA maintains over $600,000 in current parts inventory. NAPA adds, and replaces inventory on a regular basis. The projected savings of the three year contract in 2014 was estimated to be $202,000 due to the elimination of city inventory and one Parts Technician. After three years, the City has realized an actual savings of $395,609 due to NAPA's ability to buy with national contract pricing, manufacturer's discounts and rebates earned by NAPA which is passed on through the management billing. NAPA utilized $62,159 in manufacturer rebates and reduced the City's parts cost by $69,670 over the 3-year contract period by identifying and providing acceptable aftermarket part options. In addition to acquiring and reducing $170,000 of the City's parts inventory, NAPA reduced the City's Inventory Exposure (shrinkage, warranties, cores, defective parts, etc.) by $93,780. The term of this contract will expire April 8, 2017.
City staff issued a Request for Proposal (RFP) on November 18, 2016, for Vehicle and Equipment Parts Management and Supply Services for a new 4-year cont...
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