Report Prepared by: Julio Marquez, Purchasing Supervisor.
Title
SUBJECT: Approval to Purchase One (1) New 2027 Chevrolet Traverse for the Purchasing Department from National Auto Fleet Group, in the Amount of $45,034.97 Plus 10% for Contingency, Through Sourcewell Contract #081325-NAF
REPORT IN BRIEF
Considers approving the purchase of one (1) new 2027 Chevrolet Traverse for the Purchasing Department in the amount of $45,034.97, utilizing the cost savings government procurement program (Sourcewell). The purchase of the new vehicle will reduce maintenance costs and improve delivery efficiency.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchase to be made with a cooperative purchase agreement through Sourcewell, a government procurement program; and,
B. Approving the purchase of one (1) new 2027 Chevrolet Traverse in the amount of $45,034.97 from National Fleet Auto Group., through Sourcewell contract #081325-NAF; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the issuance of the Purchase Order, and approval of change orders not to exceed 10% of the total purchase price.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 25/26 Adopted Budget.
DISCUSSION
Sourcewell offers an equipment/vehicle purchase program to government entities nationwide; specifications are created, and Request for Bids are sought by Sourcewell for a wide variety of equipment used by local governments. As a result of the nationwide scope of these programs, the City is able to purchase specialized equipment for much less than the more traditional method of creating specifications and soliciting bids in-house.
Over the last several years, the City has purchased a variety of equipment and vehicles through the Sourcewell government procurement program with great success.
The City of Merced Purchasing Division is requesting Council authorization to purchase one (1) new 2027 Chevrolet Traverse to replace Asset E-876, 2001 Chevrolet Venture Mini Van. The replacement vehicle will support departmental operations while reducing fuel consumption and long-term fleet maintenance costs associated with aging fleet assets.
Asset E-876, 2001 Chevrolet Venture Mini Van was Purchased by the Information Technology (IT) Department in 2000 for $23,953.02. Most vehicles have a 7-10-year useful life. The vehicles were transferred to the Purchasing Division and was continued to use for another ten years. The most cost-effective and operationally efficient option is to replace this unit with a new vehicle which will improve reliability, reduce downtime, and lower ongoing operational expenses.
Chevrolet Traverse provides operational efficiencies through lower fuel expenses, reduced maintenance requirements and enhanced vehicle reliability. Purchasing utilizes a vehicle to make inventory deliveries to several departments throughout the city.
Section 3.04.210 of the Merced Municipal Code provides that the City Council can approve a waiver of the City’s competitive bidding requirements when such purchases are made pursuant to cooperative purchasing in conjunction with other governmental entities.
Staff requests waving the bidding requirements in order to utilize the government pricing contract available through Sourcewell and to streamline the procurement process.
IMPACT ON CITY RESOURCES
This vehicle will be funded with savings from within the FY 25-26 approved Purchasing and Finance budget. No additional appropriations are needed.
ATTACHMENTS
1. Sourcewell Quote 35201
2. Sourcewell Membership
3. National Auto Fleet Contract 081325