Title
Resolution to Authorize a Sole Source Purchase Order to Interstate Trucksource, Inc., of Romulus, Michigan, for Fleet Parts and Service (Not to Exceed $60,000.00)
Memorandum
The proposed resolution authorizes the purchase of truck and equipment replacement parts with related accessories and services in an amount not to exceed $60,000.00 per year from Interstate Truck Source Inc. for FY24 and FY25, subject to the availability of funding in FY25. While the requested purchasing authority on this item is less than the $75,000.00 City Council threshold, per City Charter this specific item needs City Council approval because it is a sole source purchase greater than $25,000.00.
Interstate Trucksource, Inc. is the sole local dealer for Mack parts and service. Mack parts are the only parts that can be used in the repair and maintenance of Mack trucks to maintain warranty coverage. The advantages of sole source supply include reduced inventory requirements and the familiarity that mechanics have to diagnose and repair equipment in a timely manner.
The City currently has four Mack trucks in the City’s fleet. These vehicles are at or near the end of their useful life so maintenance costs per truck are impactful. The requested amount for each fiscal year is based on fleet’s regular maintenance history for these vehicles.
Budget/Fiscal Impact: Adequate funding for the purchase of truck and equipment parts and services has been budgeted in the approved FY24 Fleet Services Operations and Maintenance Budget. Award of the FY25 purchase order would be subject to the availability of funds.
Interstate Trucksource, Inc. complies with the requirements of the City’s Conflict of Interest and Non-discrimination Ordinances.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Manager
Reviewed by: John Fournier, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Interstate Truck Source Inc. of Romulus, Michigan, is the sole local dealer for Mack parts and services used to maintain the City of Ann Arbor fleet;
Whereas, Interstate Truck Source Inc. complies with the City’s Conflict of Interest and Non-discrimination Ordinances; and
Whereas, Adequate funds for the purchase of these replacement parts and services are available in the approved FY24 Fleet Services Operations and Maintenance Budget;
RESOLVED, City Council approves a sole source purchase order to Interstate Trucksource, Inc. in an amount not to exceed $60,000.00 in FY24 and not to exceed $60,000.00 for FY25 subject to the availability of funding in FY25; and
RESOLVED, That Council authorizes the City Administrator to take the necessary administrative actions to implement this resolution.