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APPROVE A MOTION TO ENTER INTO COOPERATIVE PURCHASING AGREEMENTS FOR (1) AUTOMOTIVE PARTS AND SUPPLIES, AND (2) MAINTENANCE, REPAIR, OPERATIONS (MRO) SUPPLIER & SERVICES.
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bid process.
2. Approve the use of the following Cooperative Purchase agreements through Omnia Partners:
a. Contract No. R-LD-23013-01, with Advance Stores Incorporated, dba Advance Auto Parts, to provide Automotive Parts & Accessories for Light, Medium and Heavy-Duty Vehicles and Related Products & Services, for a term through October 31, 2028, and a total not-to-exceed amount of $1,200,000.
b. Contract No. 2018.000208 with Fastenal for Maintenance, Repair and Operations (MRO) Supplies, parts, Equipment, Materials, and Related Services, specifically fasteners, for a term through June 30, 2026, and a total not to exceed amount of $235,000.
It is also recommended that the City Manager be authorized to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton has a need for contracts for automotive parts and supplies and fasteners to support City operations.
The City has a fleet of approximately 1,100 different types of vehicles ranging from light duty administrative vehicles to heavy duty specialty vehicles. Central Stores and Fleet Services are responsible for maintaining inventories of appropriate parts and supplies available to service vehicles as needed. Central Stores manages an inventory of approximately 1,500 automotive parts and supplies with a value of $1,700,000. Everyday stock and non-stock automotive parts are ordered to ensure Fleet Services can service vehicles and return them to the relevant City department for continued services to the community.
The Municipal Utilities Department (MUD), MUD Stores and Public Works have a need for fasteners, which includes screws, nails, bolts, anchors, etc., from Fastenal. MUD Stores is the primary user of this contract through items stocked for City use.
It is recommended that City Council approve a motion authorizing the City Manager to execute a cooperative agreement as specified above.
DISCUSSION
Background
The City requires the acquisition of these goods and services to meet the City’s needs and provide services to the community. Specifically, these contracts will be used by Central Stores, MUD Stores, Public Works and MUD.
For many years the City has been using Carquest for automotive parts and accessories and Fastenal for fasteners via purchase orders and P-card transactions. The estimated annual cumulative spend exceeds the City’s formal procurement threshold for each of these categories’; therefore, the City needs to have a formal contract agreement in place.
Cooperative purchasing agreements leverage collective buying power of the cooperative partners to negotiate lower prices. The strength in the numbers of cooperative partners enables members to access a contractual solution that could not be achieved on their own. Each of the agreements were solicitated and awarded by a lead public agency partnering with Omnia, who markets their contracts to their member agencies.
The contract with Advance Stores Incorporated, dba Advance Auto Parts, will provide Automotive Parts & Accessories for Light, Medium and Heavy-Duty Vehicles and Related Products & Services was solicited and awarded by the Prince William County Public Schools, Virginia, with an estimated contract spend of $100 million.
The contract with Fastenal for Maintenance, Repair and Operations (MRO) Supplies, parts, Equipment, Materials, and Related Services was solicited and awarded by the University of California with an estimated contract spend of $500 million.
Each of these solicitations and contract documents has been reviewed and determined to meet the City’s procurement requirements and supply needs.
Present Situation
Omnia Partners collaborates with lead public agencies to solicit and award contracts available to its members. Omnia Partners offers a comprehensive approach to support public agencies with value-driven contracts, technology-supported solutions, spend analysis and dedicated experts to help make the purchasing process smarter and easier.
Utilizing the Omnia Partners cooperative agreement allows the City an opportunity to participate in leverage negotiated pricing (automotive parts receive discounts of 35% to 65% and MRO parts receive 25% to 57% off catalog pricing). These agreements also address the need to provide sustainable “green” products to meet federal, state and local requirements and are in the City’s best interest.
Staff recommends entering into the cooperative agreements (Attachments A and B) to utilize Omnia contracts with Advance Stores Incorporated, dba Advance Auto Parts agreement number R-LD-23013-01 and Fastenal agreement number 2018.000208.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding process where the City accesses the terms of a competitively bid and negotiated cooperative purchasing agreement, and where the City Council has approved findings that support and justify the exception. The following findings support and justify an exception:
1. City’s Procurement Division recommends the use of this participating agreement and the City’s cooperative purchase agreement, as it meets the criteria as an exception to the competitive bidding process.
2. Procurement staff confirmed that the Omnia Partners contracts were solicited and awarded by a lead public agency (Prince William County and University of California) through an open and competitive process and meets the City of Stockton’s procurement requirements.
3. Participation in the Omnia agreements is in alignment with standard procurement practices.
4. Utilizing the Omnia agreements will allow the City to secure better pricing and reduces administrative costs associated with the solicitation, evaluation and award process.
5. Utilizing the Omnia agreements supports the City’s objective of using local suppliers because Carquest is the local automotive parts supplier with Advance Stores Incorporated, dba Advance Auto Parts, and Fastenal has a fulfillment center located in Stockton which will provide fast, efficient service for the parts and supplies required.
FINANCIAL SUMMARY
Budget for the cooperative agreements is included in the Fiscal Year 2024-25, for the following departments: Central Stores, MUD Stores, Public Works and MUD’s Operational Budget.
Attachment A - Omnia Partners Cooperative Piggyback Purchase Agreement No. R-LD-23013-01 with Advance Stores Incorporated, dba Advance Auto Parts
Attachment B - Omnia Partners Cooperative Piggyback Purchase Agreement No. 2018.000208 with Fastenal