Title
Department of Transportation recommending the Board:
1) Authorize the utilization of the Sourcewell Request for Proposal 090624-GPC with Genuine Parts Company, doing business as NAPA Auto Parts (NAPA), to provide on-site fleet vehicle and equipment parts and inventory program services;
2) Approve and authorize the Chair to sign Agreement for Services 9549 with Genuine Parts Company, doing business as NAPA Auto Parts, with a not-to-exceed of $4,000,000, and a term beginning upon execution, through December 28, 2028; and
3) Authorize the Purchasing Agent to extend the term of this Agreement for up to three (3) additional one (1) year terms if the provisions are exercised in Sourcewell contract 090624-GPC and increase the not-to-exceed amount as long as funding is available within Transportation's budget.
FUNDING: Road Fund (State) and Fleet Service Internal Fund (Local).
Body
DISCUSSION / BACKGROUND
Board of Supervisors Policy C-17, Section 4.5 "Contract Term," requires departments to obtain authorization from the Board of Supervisors for any contract term exceeding three (3) years inclusive of any amendments regardless of dollar amount.
Department of Transportation, Maintenance and Operations Division (Maintenance and Operations) is requesting to utilize Sourcewell Request for Proposal (RFP) #090624-GPC with Genuine Parts Company, doing business as NAPA Auto Parts (NAPA), to provide on-site fleet vehicle and equipment parts and inventory program services. Maintenance and Operations provides maintenance and repair to vehicles, trailers, and light and heavy equipment at the three different shop locations: a West Slope Equipment Shop and Fleet Services Shop, both located in Placerville, and an East Slope Equipment Shop, located in South Lake Tahoe. All together there are over 140 pieces of heavy equipment, 45 heavy equipment attachments and 554 fleet services vehicles.
With the Board of Supervisors approval on June 12, 2018, Maintenance and Operations implemented an on-site fleet and equipment parts inventory program through NAPA. The program provides a full-service, on-site parts department, providing the parts and related services necessary to facilitate the repair and maintenance of light and heavy equipment, as well as fleet vehicles. A full-time parts professional, employed by NAPA, is on-site at the West Slope Equipment Shop, providing service for all three locations, and handles all ordering, inventory management, and physical counts. The program has been very successful and Maintenance and Operations desires to continue the same type of service through the most recently awarded RFP.
The vendor-managed inventory program has shown to provide the County with multiple benefits and improved efficiencies such as:
1) The County-managed parts inventory has been significantly reduced, and staff resources used for monthly inventory, year-end inventory, and reconciliation have been substantially lessened.
2) Parts are not purchased until they are needed; the County is no longer purchasing parts that may become aged, damaged, or lost, and lose value.
3) NAPA can use its national bargaining power to negotiate lower prices on original manufacturer parts.
4) Administrative staff time required to set up new vendors, create annual blanket contracts, create direct purchase orders, and pay invoices has been reduced, as NAPA procures the items and generates an invoice per location on a month-to-month basis.
Agreement #9549 has an initial term of upon execution extending through December 28, 2028, with the option of extending up to three (3) additional one (1) year terms if exercised in under Sourcewell RFP #090624-GPC.
ALTERNATIVES
The Board could choose not to approve the utilization of the Sourcewell RFP for the agreement with NAPA. Transportation would then need to reevaluate Transportation processes and come back to the Board with other options.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement and Contracts Unit, County Counsel and Risk Management
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no impact to Net County Cost associated with Agreement #9549. Funding for the services and parts under this agreement are included in the recommended Fiscal Year 2025-26 budget and will be included in future budgets for the term of the agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair's signature on two (2) originals of Agreement for Services #9549.
2) The Clerk of the Board will return one (1) original of Agreement for Services #9549 to Procurement and Contracts for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation