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HomeMy WebLinkAboutOrdinance 6491F FPYETT F� 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6491 File Number: 2021-0718 BID WAIVER FOR FLEET VEHICLES: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF NEW VEHICLES THROUGH VARIOUS MANUFACTURERS' AUTHORIZED DEALER NETWORKS, BUT TO REQUIRE INFORMAL QUOTES OR BIDS FOR SIMILAR VEHICLES, AND TO AUTHORIZE THE MAYOR TO EXECUTE ANY AGREEMENTS NECESSARY TO PARTICIPATE IN GOVERNMENT FLEET PROGRAMS WHEREAS. new vehicles are available at a discounted rate directly from various manufacturers' authorized dealer networks through government fleet programs; and WHEREAS, not all dealers are part of an authorized dealer network and using the government fleet programs ensures consistent pricing and includes other benefits like technician training, access to available inventories statewide, increased standard warranties, and discounts on diagnostic software and parts; and WHEREAS, dealers do not have pricing prior to an ordering window, which is often not open long enough to complete the full bidding process. and the pricing that would be submitted in the bidding process will be the same as through a government fleet program; and WHEREAS, authorizing purchases through government fleet programs without competitive bidding will allow the Fleet Division to place orders within short ordering windows, purchase existing inventory when available, obtain quotes quickly from different manufacturers based on the specific needs of a division or department, and ensure staff has the equipment needed to maintain a high level of service to Fayetteville residents and businesses. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF Page 1 Printed on 1016121 Ordinance: 6491 File Number.' 2021-0718 FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville. Arkansas hereby finds the above circumstances make competitive bidding not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of new vehicles through the various vehicle manufacturers' authorized dealer networks, and further authorizes the Fleet Division to solicit informal bids or quotes prior to the purchase of vehicles without the need for further approval by the City Council. Section 2: that the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign any agreements or documents necessary to participate in the government fleet programs. PASSED and APPROVED on 10/5/2021 Approve Attest: �ERK G. • • • • . RF'�i, _ FAYE77E1•�LLE ioneld rd ,Mayor Kara Paxton, City Clerk Treasurei:� �: ; Page 2 Printed on 10/6/21 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0718 Agenda Date: 10/5/2021 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Ordinance Agenda Number: CA BID WAIVER FOR FLEET VEHICLES: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF NEW VEHICLES THROUGH VARIOUS MANUFACTURERS' AUTHORIZED DEALER NETWORKS, BUT TO REQUIRE INFORMAL QUOTES OR BIDS FOR SIMILAR VEHICLES, AND TO AUTHORIZE THE MAYOR TO EXECUTE ANY AGREEMENTS NECESSARY TO PARTICIPATE IN GOVERNMENT FLEET PROGRAMS WHEREAS, new vehicles are available at a discounted rate directly from various manufacturers' authorized dealer networks through government fleet programs; and WHEREAS, not all dealers are part of an authorized dealer network and using the government fleet programs ensures consistent pricing and includes other benefits like technician training, access to available inventories statewide, increased standard warranties, and discounts on diagnostic software and parts; and WHEREAS, dealers do not have pricing prior to an ordering window, which is often not open long enough to complete the full bidding process, and the pricing that would be submitted in the bidding process will be the same as through a government fleet program; and WHEREAS, authorizing purchases through government fleet programs without competitive bidding will allow the Fleet Division to place orders within short ordering windows, purchase existing inventory when available, obtain quotes quickly from different manufacturers based on the specific needs of a division or department, and ensure staff has the equipment needed to maintain a high level of service to Fayetteville residents and businesses. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby finds the above circumstances make competitive bidding not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of new vehicles through the various vehicle manufacturers' authorized dealer networks, and further authorizes the Fleet Division to solicit informal bids or quotes prior to the purchase of vehicles without the need for further approval by the City Council. City of Fayetteville, Arkansas Page 1 Printed on 101612021 File Number: 2021-0718 Section 2: that the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign any agreements or documents necessary to participate in the government fleet programs. City of Fayetteville, Arkansas Page 2 Printed on 101612021 Sara Glenn Submitted By City of Fayetteville Staff Review Form 2021-0718 Legistar File ID 10/5/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/15/2021 FLEET OPERATIONS (770) Submitted Date Division / Department Action Recommendation: An ordinance waiving the requirements of formal competitive bidding of vehicles procured through a manufacturer's authorized body of dealers, including but not limited to General Motors/Chevrolet, Ford, Dodge, Toyota, etc. for the purchase of vehicles, within budget, after obtaining quotes from different vehicle manufacturer's authorized dealers, and authorizing the Mayor to execute agreements with manufacturers as necessary to participate in government fleet programs. Budget Impact: Various Various Account Number Fund Various Various Project Number Project Title Budgeted Item? Yes Current Budget $ 10,383,743.00 Funds Obligated $ 5,034,204.11 Current Balance $ 5,349,538.89 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? No Budget Adjustment Remaining Budget 5,349,538.89 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS W MEETING OF OCTOBER 05, 2021 TO: Mayor and City Council THRU: Terry Gulley, Director of Transportation FROM: Sara Glenn, Fleet Operations Superintendent DATE: September 14, 2021 SUBJECT: Bid Waiver for Fleet Vehicles CITY COUNCIL MEMO RECOMMENDATION: An ordinance waiving the requirements of formal competitive bidding of vehicles procured through a manufacturer's authorized body of dealers, including but not limited to General Motors/Chevrolet, Ford, Dodge, Toyota, etc. for the purchase of vehicles, within budget, after obtaining quotes from different vehicle manufacturer's authorized dealers, and authorizing the Mayor to execute agreements with manufacturers as necessary to participate in government fleet programs. BACKGROUND: New Vehicles are available at a discounted rate directly from the manufacturer's authorized body of dealer networks utilizing various government fleet programs. Using these programs allows a government agency to leverage its spending power by having government pricing that is consistent regardless of dealer and includes numerous other benefits including technician training and searching available inventories statewide, including cancelled orders. Not all dealers are part of a manufacturer's authorized dealer network and the government fleet program pricing can only be guaranteed by ordering from an authorized dealer. DISCUSSION: Purchasing new vehicles utilizing these government fleet programs enables the City to secure competitive pricing which is based on a high -volume discount and bid -assist pricing provided to dealers directly from the manufacturer. These programs also increase standard warranties and provide discounts on diagnostic software and parts. Authorizing the purchases within approved budget allows the City to place orders in short ordering windows, purchase existing inventory when available, and ensure staff has the equipment to maintain operations and continue to provide services to residents. Competitive bidding is not feasible or practical because dealers do not have pricing prior to the ordering window, the window is often not open long enough for the City to complete its internal bidding process, and the pricing that would be submitted in a bid response is the same as through the government fleet programs. Fleet needs the flexibility to obtain quotes quickly from different manufacturers based on the specific needs of a division or department Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Fleet's continued mission is to provide efficient equipment to our user departments, so that they can in turn provide service to the citizens of Fayetteville. BUDGET/STAFF IMPACT: Funds will be spent within allowed approved budget authorized by City Council.