CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 22-197, Ford Automotive Parts & Supplies, to Ford Motor Company for an amount not to exceed $235,000 and for a 2.5-year term
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BACKGROUND:
The Department of Public Works - Fleet Services Division is responsible for repairs and maintenance to the City's fleet, which includes Ford vehicles. It is important to use original equipment manufacturer (OEM) replacement parts for some components.
The City Manager awarded Option Year Two to Contract 19-104 on May 26, 2021. The current award includes contracts to three vendors: CPS Companies, Gerald Ford, Inc., and Factory Motor Parts. Staff has identified a Sourcewell cooperative contract through Ford Motor Company to replace Contract 19-104.
DISCUSSION:
Fleet Services processes an estimated 470 Ford and Motorcraft parts orders annually with a total value of approximately $89,000.
Staff has identified an approved cooperative contract, Sourcewell Contract #101520-FMC, through Ford Motor Company (Ford) to replace Contract 19-104. By replacing the current contract, staff can take advantage of the following benefits:
* Ford National Fleet Parts Contract Not-to-Exceed Pricing
o Allows the City to save over 36% off list price
* Added flexibility
o The City can purchase from any participating provider, not just three suppliers as was done under 19-104
* OEM Ford, Motorcraft and aftermarket Omnicraft parts on one contract
* Consolidated billing and invoice payment
o Staff will process 12 statements per year instead of 470 invoices
* Additional savings
o Ford Fleet Network includes an opportunity to earn up to an 8% rebate on all Ford, Motorcraft and Omnicraft parts purchases
Based on the City's recent purchase volume and current parts pricing, staff recommends an award of $235,000 for a 2.5 year term from July 1, 2022, through December 14, 20...
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