Title
Consider a memorandum/resolution authorizing the procurement of fleet parts TNTX/Lonestar Truck Group, NAPA/Third Coast Distributors, Mac Haik Ford Lincoln and O’Reilly Auto Parts in an amount of $544,903 and tires through Southern Tire Mart in an amount of $236,602 for Fiscal Year 2027.
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DATE: October 20, 2026
TO: Laurie Wilson, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Procurement of Fleet Parts and Tires
BACKGROUND AND FINDINGS:
The City of Killeen Fleet Services Division provides the maintenance and repair services for approximately 1,152 fleet units. To support these operations, Fleet Services purchases parts and tires daily, with costs charged to the corresponding City departments as items are used. Frequently used parts and tires are maintained in inventory to facilitate timely repairs. Fleet Services currently stocks approximately 3,536 distinct parts, while non-stocked items are purchased as needed and delivered by the applicable vendor.
Fleet Services purchases parts from approximately 99 vendors offering cooperative pricing and/or dealer-only parts, with annual purchases totaling approximately $2.4 million. Four vendors are expected to exceed the $100,000 annual expenditure threshold in Fiscal year 2027 and therefore require City Council approval.
The primary vendors for fleet parts are TNTX/Lonestar Truck Group, NAPA/Third Coast Distributors Mac Haik Ford Lincoln and O’Reilly Auto Parts. During the previous fiscal year 2026, the combined amount spent with these four vendors was $496,077.52. The total estimated amount to be spent in FY 2027 is $544,903.
All vendors offer significant savings to the City through their cooperative contracts. Mac Haik Ford Lincoln Provides Cooperative pricing pursuant to BuyBoard Contract #715-23, effective through November 30, 2026 (currently being renewed), with savings of 5% to 25%. TNTX/Lonestar Truck Group provides cooperative pricing pursuant to The Interlocal Purchasing System (TIPS) contract #251001, effective through January 31, 2029, with savings of 14% to 42% off list price. NAPA/Third Coast Distributors provides cooperative pricing pursuant to Sourcewell contract #100124-GPC, effective through January 10, 2029, with savings of 46% to 70% off list price. O’Reilly Auto Parts provides cooperative pricing pursuant to Sourcewell contract X100124-ORA effective through January 10, 2029, with saving of 41% or better off list price.
The vendor for new tires offering significant savings and service to the city is Southern Tire Mart of Waco, TX. During the preceding fiscal year, the cost for tires was $215,093. The total estimated amount to be spent with Southern Tire Mart in FY 2027 is $236,602.
Southern Tire Mart has provided new tires to the City for several years utilizing cooperative pricing pursuant to the TASB BuyBoard contract #729-24, effective through February 28, 2027(currently being renewed). The cooperative pricing structure with Southern Tire Mart offers savings of 41% to 67% off list price.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Fleet Services is seeking approval to purchase parts and tires for various departments from TNTX/Lonestar Truck Group, NAPA/Third Coast Distributors Mac Haik Ford Lincoln, O’Reilly Auto Parts and Southern Tire Mart through their cooperative contracts. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code (TLGC) section 271.102, subchapter F; a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The estimated FY 2027 expenditure is $781,505, consisting of $544,903 for fleet parts purchased from TNTX/Lonestar Truck Group, Mac Haik Ford Lincoln, NAPA/Third Coast Distributors, and O’Reilly Auto Parts, and $236,602 for fleet tires purchased from Southern Tire Mart.
Is this a one-time or recurring revenue/expenditure?
One-time. This authorization is for fleet parts and tire purchases during FY 2027. Similar expenditures are anticipated annually and will be brought forward for approval as required in future fiscal years.
Is this revenue/expenditure budgeted?
Yes. The FY 2027 Budget includes $2,255,121 citywide in account 53800 (On-Road Repairs and Maintenance) and $1,257,998 citywide in account 53315 (Off-Road Repairs and Maintenance). Fleet parts and tire expenditures are charged to the applicable fund, department, and division accounts as incurred.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes.
RECOMMENDATION:
City Council approve the procurement of fleet parts through TNTX/Lonestar Truck Group, Mac Haik Ford Lincoln, O’Reilly Auto Parts and NAPA/Third Coast Distributors in an amount of $544,903 and tires through Southern Tire Mart in an amount of $236,602 for Fiscal Year 2027, and authorize the City Manager, or designee, to execute any and all change orders within the amounts set by State and Local Law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Contracts
Certificates of Interested Parties
Presentation