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AMENDMENT NO. ONE TO CONTRACT NO. K-1213-167: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND MERCURY ASSOCIATES, INC., IN THE AMOUNT OF $30,780 TO CONDUCT A FLEET RIGHT-SIZING STUDY AND BUDGET APPROPRIATION.
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BACKGROUND: On March 12, 2013, City Council approved Fleet Management Analysis Services Contract No. K-1213-167 with Mercury Associates, Inc. of Gaithersburg, Maryland for the evaluation of all aspects of the City's fleet operation, overall effectiveness and identifying where "Best Fleet Practices" are being used.
On October 16, 2013, Mercury Associates, Inc. presented its findings of the Fleet Management Analysis to the Council Finance Committee. On January 15, 2014, the Finance Committee recommended that the Amendment with Mercury in the amount of $30,780 be forwarded to City Council for their approval.
DISCUSSION: Mercury Associates, Inc. found areas where the Fleet Management Division excels and follows best management practices such as having many competent staff members, knowledgeable and dedicated to the management and maintenance of the fleet along with vehicle and equipment maintenance practices that are solid. In addition, Mercury Associates Inc. found areas of potential improvement, efficiency gains, and potential cost savings to the City of Norman.
Mercury's report also identified 216 vehicles/equipment that are below the average utilization of 6,000 miles or 500 hours of use annually. The report also recommended a formal Right-Sizing Study be conducted to determine what opportunities the City has to reduce the size of the fleet. Mercury's report shows that if 10% or 22 vehicles can be eliminated from the fleet, this will provide $3.2 million in replacement cost avoidance.
Amendment No. One to Contract No. K-1213-167 allows Mercury to review fleet utilization with an eye on rightsizing the fleet. In addition, Mercury will assist staff in developing formal policies and procedures that will establish how fleet u...
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