COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Deputy Director of Public Works
SUBJECT:Title
Discussion and Action: Cooperative Purchase for Implementation of an Integrated Business Solution (IBS) Program with Genuine Auto Parts dba NAPA Auto Parts (Bill Young)
Body
FUNDING SOURCE:
Various Departments and Funds
PURPOSE:
To approve the Cooperative Purchase for implementation of an Integrated Business Solution (IBS) Program to streamline the City’s parts procurement, inventory management and maintenance operations utilizing the Sourcewell Cooperative Contract 090624-GPC under a Cooperative Purchase Agreement (500645) with Genuine Auto Parts dba NAPA Auto Parts, in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.030.1. The Sourcewell Cooperative Contract expires December 3, 2028 with the option to renew for three one-year terms if agreed upon by both parties.
BACKGROUND:
The City’s Fleet Services Division is responsible for the maintenance and repair of approximately 550 vehicles and pieces of equipment used by various departments, including Public Works, Police, Fire, and Parks.
Currently, parts procurement is handled through multiple cooperative purchase agreements, purchase orders, vendors, and manual inventory tracking processes. This fragmented system results in administrative inefficiencies, delays in repair turnaround times, and challenges in maintaining optimal inventory levels.
NAPA’s Integrated Business Solutions (IBS) model is an on-site parts management program designed specifically for municipal fleet operations. Under this program, NAPA provides dedicated staff and inventory management systems to ensure timely availability of quality parts, improved cost control, and reduced downtime for City vehicles.
On July 3, 2025, the City issued a Letter of Interest to identify available cooperative purchasing agreements for vendor-managed inventory programs related to automotive parts. The Letter of Interest was distributed to 73 suppliers, including local vendors such as O’Reilly Auto Parts, Advance Auto Parts, and AutoZone. A 30-day response period was provided, during which only one additional response was received from MANCON, LLC (MANCON). A comparison of program offerings between MANCON and NAPA Integrated Business Solutions (IBS) revealed that, while MANCON’s program is similar in scope, the company lacks the extensive dealer network that NAPA provides. Furthermore, NAPA offers real-time data integration with the City’s current fleet management software. Based on these factors, NAPA’s Integrated Business Solutions contract was determined to best meet the City’s operational needs.
COMMUNITY IMPACT:
The City can expect decreased vehicle downtime due to improved parts availability, enhanced cost transparency and accountability, improved operational efficiency within Fleet Services, and cost control through optimized inventory management.
FISCAL IMPACT:
Expenditures for parts will continue to be funded through the approved departmental budgets in the various funds, allocated to user departments as appropriate. Funds are allocated and available in the Fiscal Year 2025-26 Annual Budget for parts ($900,000). For the inventory management costs of approximately $125,000 funds are also available in the Public Works Fleet Division for the management fee portion of the contract.
For future fiscal years, the costs for inventory/parts and inventory management will remain subject to the amounts annually allocated and available in the adopted City budget.
ATTACHMENTS:
Participating Addendum 500645
SUGGESTED MOTION:Recommended action
I move to approve the cooperative purchase for participation in the NAPA Integrated Business Solutions Program, under the terms and pricing available through the Sourcewell Contract 090624-GPC with Genuine Auto Parts dba NAPA Auto Parts in the amount estimated of $900,000 per year for inventory/parts and for inventory management estimated at $125,000 per year, not to exceed the amount available in the annual budget; and authorize the City Manager to execute the Participating Addendum on behalf of the City.