Submitted By: John King
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Presentation By: John King
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Department: Fleet
STAFF RECOMMENDATION (Motion Ready):
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Approve three-year contract with Ford of Ocala and Advance Auto Parts to supply consignment auto parts for an estimated expenditure of $500,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
Released to the public on: 8/31/21
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BACKGROUND:
In 2016, Fleet Management transitioned its automotive parts and inventory operation to a vendor-managed inventory consignment process to assist in maintaining and repairing the City’s vehicles and equipment. Established consignment level agreements with local automotive parts suppliers will place inventory-specific parts in the Fleet’s parts room. Vendor management inventory has significantly reduced the costs of parts acquisition, eliminated obsolete parts, and increased fill rates.
The performance advantages of a vendor-managed inventory consignment process will increase efficiency and will result in annual cost savings of approximately $165,000.
FINDINGS AND CONCLUSIONS:
On August 31, 2021, an Invitation to Bid (ITB) FLT/210774 was issued for Auto Parts Consignment Inventory Services. The City received four (4) competitive bids of which TT of Ocala, Inc. d/b/a Gary Yeomans Ford Lincoln of Ocala (Ford of Ocala) and Advance Stores Company, Inc. (Advance Auto Parts) were the lowest responsive bidders, providing parts equivalent to or better than the original equipment manufacturers’ standards at the best prices (see Bid Tabulation).
FISCAL IMPACT:
Funding for this contract has been budgeted in Fleet’s Operating Supplies account (001-025-523-519-51-52010). The estimated expenditure for this contract is $500,000.
PROCUREMENT REVIEW:
These agreements have been reviewed and approved for compliance with the City’s procurement policies.
LEGAL REVIEW:
The contracts have been reviewed for form and legality by the City Attorney, Robert W. Batsel, Jr.
ALTERNATIVE:
Deny, Amend, Table
SUPPORT MATERIALS:
N/A