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Agreement with Elliott Auto Supply Co. Inc. dba Factory Motor Parts for Vendor -Owned Inventory Program June 4, 2019 Page 2 On March 29, 2019, the Public Works Agency issued a Request for Proposal (RFP) for qualified firms to provide vendor -owned inventory program for the Fleet Maintenance Division. The RFP was advertised on the City's online bid management and publication system. A total of 21 potential vendors were notified and 19 downloaded the solicitation documents. A nonmandatory pre -proposal meeting was held on April 3, 2019. Two potential suppliers attended the meeting. Four proposals were received and evaluated by a committee consisting of representatives from various City divisions, including a representative from the Finance and Management Services Agency, Public Works Central Stores, Public Works Fleet Maintenance, and a representative from another municipality. The proposals were evaluated based on availability and quality of products, contractor experience with similar vendor -owned programs, compliance with request for proposal requirements, and cost. The table below summarizes the results of the four proposals: RANK PROVIDER AVERAGE SCORE 1 Elliott Auto Supply Co., Inc. dba Factory Motor Parts 97 2 Warren Distributing 88 3 Guaranty Chevrolet 27 4 DARTCO 25 The proposal from Elliott Auto Supply Co., Inc., dba Factory Motor Parts, received the highest score in the evaluation process and meets all City requirements. As part of the terms of the agreement, prices identified in Exhibit 1 shall remain fixed during the first year and a not -to -exceed 2% increase may be considered at the anniversary date. The annual amount of $340,000 is based on staff projections for this contract period. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACTS There is no environmental impact associated with this action. FISCAL IMPACT The proposed FY 2019-20 budget includes funding in Equipment Maintenance -Garage Operations account (No. 07517100-63202) and funding will be included in proposed budgets for future years as follows: 25C-2