Title
Bus Maintenance Parts Contract
Action
Action:
A. Approve the purchase of bus maintenance parts, as authorized by the sole source exemption of G.S. 143-129 (e)(6),
B. Approve a unit price contract with Arkay Acquisition LLC (Gillig, Inc.) for the purchase of bus maintenance parts for the term of three years, and
C. Authorize the City Manager to renew the contract for up to two additional, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
John Lewis, CATS
Tangee Mobley, CATS
Sole Source Exemption
§ G.S. 143-129 (e) (6) provides that formal bidding requirements do not apply when:
- Performance or price competition are not available;
- A needed product is available from only one source or supply; or
- Standardization or compatibility is the overriding consideration.
§ Sole sourcing is necessary for this contract because there is only one supply source.
§ The City Council must approve purchases made under the sole source exception.
Explanation
§ The City uses proprietary original equipment manufacturer (OEM) bus parts in the daily maintenance and repair of the Transit bus fleet.
§ The proprietary OEM parts meet the required specifications and standards to keep the buses in the proper operating condition and to maintain bus warranties.
§ Bus parts will be ordered on an “as needed” basis. The contract amount is based on prior usage and required inventory stock levels.
§ Arkay Acquisition LLC will be paid the unit prices set forth in the contract, a copy of which is available upon request.
§ Annual expenditures under the contract are estimated to be $950,000.
Charlotte Business INClusion
This is a sole source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Transit Operating Budget