Title
Fleet Management Parts Outsourcing
Action
Action:
A. Approve a contract with MANCON LLC for providing Parts Department Outsourcing Service for an initial term of five years, and
B. 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):
Mike Davis, Engineering and Property Management
Chris Trull, Engineering and Property Management
Explanation
* Parts management functions at the City's six fleet service facilities include managing the on-site inventories of vehicle and equipment parts, ordering and receiving parts, and distributing parts to fleet management technicians for vehicle and equipment maintenance and repairs. This is currently a city-staffed function.
* A staff assessment of the parts management operation, which included outreach to other municipal fleet management operations, identified the following opportunities for service improvements and efficiencies:
* Increased availability and decreased wait times for parts,
* Improved turn-around time for vehicle repairs and maintenance,
* Enhanced expertise in parts sourcing and ordering,
* Centralization and simplification of contracts management,
* Reduction in workload for invoice processing, parts receiving and payment, and
* Elimination of accumulation of obsolete parts.
* The City has determined these efficiencies can be achieved by outsourcing the parts management function.
* The parts management contract will cover staffing, management, service provision, original and aftermarket equipment parts, supplies, lubricants, tires, and special equipment, as well as delivery vehicles to support City needs.
* The annual cost to outsource is roughly equal to the annual cost of the city-staffed function, and the improved service capacity, efficiency and productivity gains provide significant advantages and positive ...
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