CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 24-182, Navistar OEM Parts, to Rush Truck Centers of Illinois, Inc. for an amount not to exceed $80,000 and a total award of $180,000
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Dan Randolph, P.E., Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 24-182 to Rush Truck Centers of Illinois, Inc. on July 16, 2024 for a four-year term from July 1, 2024 through June 30, 2028. The purpose of this contract is to purchase Original Equipment Manufacturer (OEM) parts for the City’s fleet of approximately 30 Navistar vehicles.
DISCUSSION:
This Change Order is requested to add funds to purchase required parts through the remainder of the contract term. In 2024, Fleet Services staff forecasted spend for this contract based on the balance of in-house versus outsourced work at that time. Parts used by vendors for outsourced work are not purchased against this contract.
Beginning in 2025, Fleet Services shifted toward increasing in-house service for portions of the fleet, including Navistar units. This shift reduces expenses on outsourced vendor repairs and reduces downtime, improving cost-effectiveness. In recent years Fleet Services spend on Navistar parts and outsourced repairs has averaged $67,800 annually. To date in 2026, Fleet Services has kept all Navistar repairs in-house and is on trend to spend approximately $35,000 for parts to service those units. Based on known upcoming expenses, average annual parts spend and adjustments for CPI, Fleet Services estimates that an additional $80,000 is required to fund purchases through the remainder of the contract term (through June 2028).
Note that this represents a net savings to the City, as DPW is now performing these services in house and the costs for outsourced repairs are near zero.
FISCAL IMPACT:
CIP#: N/A
Navistar parts are expensed to the Equipment Parts account ...
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