Title
Consider a memorandum/resolution authorizing the procurement of fleet parts through NAPA, O'Reilly, and Lonestar Freightliner in an amount not to exceed $287,000 and tires through Southern Tire Mart in an amount not to exceed $203,000.
Summary
DATE: January 18, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, 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 1,012 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 2,911 distinct parts within Fleet Services are purchased as needed and delivered to Fleet Services by the vendor.
Fleet Services purchases parts from 47 vendors that offer cooperative pricing and/or dealer only parts totaling approximately $745,000 annually. Four of these vendors exceed the $50,000 annual threshold and therefore require City Council approval.
The primary vendors for fleet parts are the local NAPA, O'Reilly and Lonestar Freightliner. During the preceding three fiscal years, the combined average amount spent with these three vendors was $271,000. The total estimated amount to be spent in FY 2022 is $287,000.
All three vendors offer significant savings to the City through their cooperative contracts. NAPA provides cooperative pricing pursuant to Sourcewell contract #032521-GPC, effective through May 19, 2025, O'Reilly pursuant to The Interlocal Purchasing System (TIPS) contract #180603, effective through August 31, 2023 and Lonestar Freightliner pursuant to BuyBoard contract #601-19, effective through November 30, 2022. The cooperative pricing st...
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