Title
Consider a memorandum/resolution authorizing the procurement of fleet parts through Heil of Texas, Lonestar Truck Group, Mac Haik Ford, NAPA/Third Coast Distributors, and O'Reilly, in an amount of $598,000, and tires through Southern Tire Mart, in an amount of $250,000 for Fiscal Year 2025.
Body
DATE: November 19, 2024
TO: Kent Cagle, 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 required to keep the City's approximately 1,045 units of fleet functioning properly. To accomplish this feat, there are numerous parts and tires procured daily. The costs of those items are then charged back to the corresponding City departments as they are used. The regularly used parts and tires are stocked at Fleet Services to facilitate timely repairs. The items not stocked within the 2,903 distinct parts within Fleet Services are purchased as needed and delivered to Fleet Services by the vendor.
Fleet Services purchases parts from 36 vendors that offer cooperative pricing and/or dealer only parts totaling approximately $1,265,000 annually. Six of these vendors periodically exceed the $50,000 annual threshold and therefore require City Council approval.
The primary vendors for fleet parts are Heil of Texas, Lonestar Truck Group, Mac Haik Ford, NAPA/Third Coast Distributors, and O'Reilly. During the previous fiscal year 2024, the combined amount spent with these five vendors was $539,575. The total estimated amount to be spent in FY 2025 is $598,000.
All five vendors offer significant savings to the City through their cooperative contracts. Heil of Texas provides cooperative pricing pursuant to the TASB BuyBoard contract #686-22, effective through November 30, 2025, with savings of 2% to 15% off list price. Lonestar Truck Group provides cooperative pricing pursuant to The Interlocal Purcha...
Click here for full text