Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
CFO: Antonio Puente, Jr.
DATE: January 28, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or his designee, to execute a contract with Genuine Parts Company, DBA
NAPA Integrated Business Solutions through the Sourcewell Cooperative Purchasing Network Contract
Number 061015-GPC, for the purchase of products and services for the on-site parts facility for Fleet
Services; authorizing the expenditure of funds therefor; and declaring an effective date (File 7136 – awarded
to Genuine Parts Company, DBA NAPA Integrated Business Solutions, in the five (5) year not-to-exceed
amount of $20,000,000).
INFORMATION /BACKGROUND
The Fleet Services Department operates a central maintenance facility to support a diverse citywide fleet of
approximately 1,260 vehicles and pieces of equipment. Fleet Services hosts a 16 bay maintenance and repair
facility (soon to be 28 bays), offices for staff, and multiple storage locations onsite to manage and organize
parts. Fleet Services currently generates more than 6,000 vehicle repair work orders annually and anticipates
the purchase of approximately $3,500,000 in vehicle parts, services and related repair materials this year.
Fleet Services has outsourced the management and procurement of vehicle and equipment parts since 2005.
The incumbent provider, NAPA Integrated Business Solutions, currently employs five (5) on site
employees, Monday through Friday, 7 a.m. to 7 p.m.. The total value of parts inventory on-site as of January
22, 2020 is approximately $950,980.
The total annual parts and operation spend history follows demonstrating a 10% increase over four years.
Parts to operations cost is 83%.
2015 - $3,071,730
2016 - $3,297,909
2017 - $3,166,504
2018 - $3,111,674
2019 - $3,402,988
Renewal of the parts supply and management contract offer the following benefits to the City of Denton:
1) Reduced liability (cost of inventory, inventory shrinkage and part obsolescence)
2) Lowest landed cost / transparent pricing for parts
3) Immediate credit for part warranties and core returns
4) ASE Certified parts professionals and inventory management specialists
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
5) Disposal/recycling management of tires, lubricants and other fluids and materials
6) Access to low cost online and on-site technician training
7) A local distribution center located in Coppell, TX
8) Virtual inventory access and exchange with over 400 IBS locations
The Sourcewell RFP received bids from six (6) firms with NAPA IBS awarded the 061015-GPC contract
as the only bid received offering both parts inventory and on-site parts management services. Bidders
included Ford Motor Company, Mohawk Resources LTD, Sefac Inc., Vehicle Services Group LLC and
Stertil-Koni USA Inc.
Pricing obtained through Sourcewell (formerly National Joint Powers Alliance) Cooperative Purchasing
Network has been competitively bid and meets the statutory requirements of Texas Local Government Code
271.102.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 7, 2015, Council approved the interlocal agreement with the National Joint Powers Alliance
(Ordinance 2015-076).
RECOMMENDATION
Award a contract with Genuine Parts Company, DBA NAPA Integrated Business Solutions, for the
purchase of parts and services for the on-site parts facility, in a not-to-exceed amount of $20,000,000.
PRINCIPAL PLACE OF BUSINESS
Genuine Parts Company, DBA NAPA Integrated Business Solutions
Coppell, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These items and services will be funded from Fleet’s Operating Budget operating budget and charged back
to operating departments on an as needed basis. Requisition #145196 has been entered in the Purchasing
software system.The budgeted amount for this item is $20,000,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Presentation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact Terry Kader, 940- 349-8729.
Legal point of contact: Mack Reinwand at 940-349-8333.