HomeMy WebLinkAboutEmergency Item 4.$0.4•
Ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: December 15, 2015
Item # Emergency Item
Reviewed By:
Contact Name: Stephen C. Krug Department Director: ./�/."7
Contact Number: 6002 City Manager:
Subject: Contract Extension with Genuine Parts Company, doing business as NAPA and
Assigned to Glenn Joiner& Sons, Inc., Providing On-Site Management of the Fleet Parts
Supply.
Background Summary:
The City Commission approved a contract with Genuine Parts Company, doing business as NAPA, and
assigned to Glenn Joiner & Sons, Inc., on March 19, 2013 to provide on-site management of the Fleet
Division parts supply through the City's membership in the National Joint Powers Alliance (NJPA). The
original NJPA contract was to expire on February 24, 2016. The NJPA re-bid and awarded a new
contract in July 2015, superseding and voiding the original contract. NJPA has awarded a new contract
to Genuine Parts Company (NAPA) which offers the same benefits to the City as the original contract.
Public Works was in the process of obtaining a new agreement with NAPA under the new NJPA
contract when we were notified the original contract was voided.
While contract documents are obtained to be presented to the Commission at a meeting in the near
future, Public Works is requesting Commission approval to continue using the existing contract pricing
with Glenn Joiner & Sons, Inc. for parts until the new contract can be brought before the Commission for
execution.
Public Works is constantly investigating ways for the Fleet Division to reduce costs while maintaining a
high in-service rate for City vehicles and equipment with the goals to manage our parts inventory,
reduce budget and improve productivity. Public Works has found that contracting out the management
of the parts room continues to allow Fleet to meet these goals. To date, the on-site store arrangement
has benefited the City through:
• Parts purchased at bulk prices through purchasing power of the larger company, NAPA.
• Inventory investment is reduced as we do not pre-pay to stock frequently used parts.
• Accounting transaction costs are reduced by cutting down on the number of suppliers, invoices,
purchase orders, accounts payable and returns.
• On-site store staff are employees of NAPA, not City.
• Productivity has increased and vehicle downtime reduced because mechanics are working
instead of waiting on parts.
• Parts do not leave the parts room without being accounted for.
• City does not have to worry about obsolete inventory.
• Defect credits and core credits are issued immediately.
• Fleet Team focuses on maintaining the City fleet, not procuring parts and other products.
In the 2014-2015 fiscal year, NAPA provided 90% of the parts used by the City based on the budget at
a value of $511,254. NAPA also provided 3.4% of the fuel and lubricants used based on the budget at
a value of$25,382. Public Works anticipates similar costs this year based on the age of the fleet.
Public Works recommends extending the existing contract with NAPA and Glenn Joiner & Sons, Inc. to
provide parts management for the City and maintain streamlined operations until the new contract is in
place.
Issue:
Request the City Commission to extend the existing contract with Glenn Joiner & Sons to provide on-
site management of the Fleet Divisions parts supply through February 2016 when a new contract is
anticipated to be in place.
Recommendations:
Recommend the City Commission approve continuing the integrated supply agreement with Genuine
Parts Company dba NAPA and assigned to Glenn Joiner & Sons, Inc., to provide on-site management
of the Fleet Division parts supply through the National Joint Powers Alliance Contract.
Attachments:
None.
Financial Impact:
The parts are adequately funded in the Division budgets.
Type of Item: (please mark with an "x")
Public Hearing For Clerk's Dept Use:
Ordinance First Reading Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
X Commission Approval
Discussion&Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. `- ,� N/A
Review ed by ( )
N/A
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