CC MEETING: September 24, 2024
DATE: September 17, 2024
TO: Erin Rinehart, City Manager
FROM: Dwayne Bianco, Director Fleet and Facilities
Shannon Hicks, Assistant City Manager
Title
Consider Authorizing The City Manager To Exercise The Renewal Of The Contract With Vector Fleet Management, LLC For Management Of Fleet Services In An Amount Not To Exceed $2,743,798.00 Annually, For A Total Amount Not To Exceed $5,487,578.00 For The Two-Year Term.
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BACKGROUND:
In 2010, as part of the City of Carrollton’s Managed Competition initiative, Fleet Services were outsourced. In 2018, following an RFP process, City Directors and Public Service Chiefs conducted interviews with both local and national fleet service companies. As a result, the contract for Fleet Services was awarded to Vector Fleet Management for an initial term of four years, with the option for two additional two-year renewals.
Vector Fleet Management is an ASE Blue Seal certified shop that provides a wide range of services, including vehicle specifications, fleet ordering and receiving, body shop repairs, mechanical repairs, vehicle upfitting, registrations, fuel management, risk management, and overall fleet maintenance. They also offer 24-hour staffing for emergency repairs, supporting Public Works, Police, and Fire Rescue during the metroplex's last two winter events.
Fleet services consist of two components: Target and Non-Target services. Target services are predictable and can be planned for, such as oil changes. Non-Target services, on the other hand, are unpredictable and harder to budget for. These include accidents, damaged tires, driver negligence or abuse, and repairs to vehicles that are beyond their life cycle.
Vector Fleet Management also provides upfitting services, which are budgeted through the Fleet Replacement and Utility Replacement funds. Upfitting costs are only incurred when services are actually performed. Currently, we project upfit expenditures of $350,000 per year for the next two years.
Vector Fleet Management has also been instrumental in helping the City of Carrollton earn the NCTCOG Gold Fleet Award for the past four years. Recently, they expanded their partnership with the City by launching a vocational internship program with Creekview High School in CFBISD. This program prepares senior students for careers in the mechanical repair trade, equipping them to enter the automotive industry after graduation.
Vector Fleet Management proposes a 3% increase in Target services for the first year of the renewal, followed by another 3% increase in the second year. These proposed increases are in line with the contract's allowable CPI increase. Non-Target services, which are unpredictable, are budgeted based on historical averages. This renewal request does not involve an increase to the Fleet Operating Fund but does include a 15% contingency for Non-Target services due to supply chain volatility and parts availability.
Since the entire RFP process takes approximately 14-16 months and the existing contract expires in October of 2026, the next RFP for fleet maintenance services will begin in January of 2025. As with the initial RFP, representatives from Public Safety, Finance, Risk, Purchasing, Administration and all other City departments that use fleet services will be invited to collaborate on the next RFP. Departments will have input on the fleet service delivery requirements and changes that are necessary to efficiently and cost effectively run their individual fleets and to serve the citizens of Carrollton.
FINANCIAL IMPLICATIONS:
The Service Contract will be paid for from budgeted funds from the accounts and amounts listed below.
ACCOUNT UNIT ACCOUNT BUDGET AMOUNT
Fleet Services 571001 $2,304,955.00
Fleet/Utility Upfit 576190/575190 $ 350,000.00
Contingency $ 88,843.00
Total Annual Spend $2,743,798.00
IMPACT ON COMMUNITY SUSTAINABILITY:
Maintaining vehicles ensures City employees have the mobile resources necessary to do their job, which is one of the Council strategic goals.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends exercising the second available annual renewal for fleet services with Vector Fleet Management from October 1, 2024, to September 30, 2026, in an amount not to exceed $2,743,798.00 per year.