Title
Automobiles, SUVs, Vans, and Light Trucks, with Related Equipment and Accessories Contract - COOP 23-065 - Request for Award (Ordinance S-49571)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with 72 Hour LLC, dba National Auto Fleet Group to provide automobiles, SUVs, vans, and light trucks, with related equipment and accessories, for the Public Works Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $8,520,000.
Report
Summary
This contract will provide a supplemental supply of new vehicles provided by multiple foreign and domestic manufacturers. The City of Phoenix traditionally purchases vehicles from local dealerships through City contracts managed by the Public Works Department. However, the Department has identified a need to broaden purchasing options to support the purchase of electric vehicles from various manufacturers as they become available. This contract supports the Phoenix Climate Action Plan, Transportation Electrification Plan, and Sustainability Goals.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: Special Circumstances Alternative Competition. Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota that offers cooperative procurement solutions to government entities. Sourcewell's cooperative agreement best aligns with the Public Works Department's need to broaden its available resources for purchasing alternative fleet vehicles. Sourcewell's contract was competitively bid and was awarded in a manner consistent with the City of Phoenix's procurement processes. The cooperative agreement is a procurement solution that offers competitive pricing by utilizing a percentage off of the Manufacturer's Suggested Retail Price/List, across 15 manufacturers, for automobile purchases.
Contract Term
The contract will begin on or about June 1, 2023, for a five-year term, with no options to extend.
Financial Impact
The contract value will not exceed $8,520,000 for the five-year term.
Funding is available in various City departments' budgets.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Works Department.