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CONSIDERATION OF ACCEPTANCE OF REQUEST FOR PROPOSAL RFP-2021-41 FROM NAPA AUTO PARTS/INTEGRATED BUSINESS SOLUTIONS (NAPA/IBS) TO PROVIDE VEHICLE AND EQUIPMENT PARTS MANAGEMENT AND SUPPLY SERVICES AND APPROVAL OF CONTRACT K-2021-101.
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BACKGROUND: On April 8, 2014, City Council approved the first Contract with NAPA Integrated Business Solutions (NAPA/IBS) to provide an in-house parts management service for the City's diverse fleet of vehicles. NAPA/IBS has continued to supply parts to the City of Norman through a Request for Proposal (RFP) process every few years and continues out-ranking similar parts suppliers. After seven (7) years of operation, NAPA/IBS continues to provide a cost saving solution for the fleet by providing a full service parts department dedicated to the City of Norman Public Works Fleet Division. The City's fleet of vehicles consists of 926 vehicles and pieces of equipment. This wide variety of equipment includes heavy-duty trucks, street sweepers, tractors, refuse trucks, light duty cars and trucks, police, fire and transit vehicles. NAPA/IBS maintains over $750,000 in current parts inventory. NAPA/IBS adds and replaces inventory on a regular basis. Over the last four (4) years, NAPA/IBS passed on Indirect Savings of $128,000 in Operational Cost Improvement and $74,757 in Inventory Ownership Savings. They have also passed on Direct Savings of $69,873 in Parts Cost Improvements, $94,535 in Manufacture Rebates and Discounts, $197,561 Acquisition of Inventory (transfer of University of Oklahoma inventory to City of Norman NAPA inventory), and $74,757 in Inventory Ownership Savings. NAPA/IBS has reduced the City's parts cost by $139,543 over the term of the last contract period by identifying and providing acceptable aftermarket part options. The City has realized an actual savings of $639,483 due to NAPA/IBS's ability to buy with national contract pricing, manufacturer's discounts, and rebates earned by NAPA/IBS which is passed on ...
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