Title
Consider a memorandum/resolution authorizing the procurement of fleet parts from Heil of Texas in an amount not to exceed $132,000.
Summary
DATE: June 6, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Procurement of Fleet Parts from Heil of Texas
BACKGROUND AND FINDINGS:
The City of Killeen Fleet Services Division provides the maintenance and repair required to keep the City's Solid Waste fleet of 98 units functioning properly. To accomplish this feat, there are numerous parts procured daily. The costs of those items are then charged back to the department as they are used. The regularly used parts are stocked at Fleet Services to facilitate timely repairs. The items not stocked within the 2,922 distinct parts at Fleet Services are purchased as needed and normally delivered to Fleet Services by the vendor.
Fleet Services purchases refuse body parts primarily from four vendors that offer cooperative pricing. These vendors haven't exceeded the $50,000 annual threshold in the past. Due to several reasons, one of these vendors, Heil of Texas, has begun to exceed that threshold and now therefore requires City Council approval.
Over the past three years, the average spent with Heil has been $38,360.00 per year. Based upon the previous six months of this fiscal year, the total estimated amount could approach $132,000.00 in FY 2023.
The primary reason contributing to this increase in costs is the delay in receiving the new replacement vehicles which is a result of the COVID epidemic. The delay causes the aged equipment to remain in front-line service longer than it should, instead of being disposed of or used in a reserve capacity. Four of the units that would have normally been replaced by now have already incurred $45,000 of this fiscal year's parts cost with Heil. Of the 16 Solid Waste units ordered since October 2021, only four have arrived. The remaining 12 are scheduled to be delivere...
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