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TO: Mayor Richard C. Irvin
FROM: Derrick Winston, Director of Public Facilities
DATE: March 18, 2025
SUBJECT:
Fleet Automotive Parts and Supplies Service Agreement
PURPOSE:
To obtain authorization to enter into an automotive parts and supplies service agreement with Genuine Parts Company for the City's fleet maintenance operations.
BACKGROUND:
The Fleet Maintenance Division is responsible for the acquisition, maintenance, and eventual decommission of the City's fleet assets. New and replacement automotive parts utilized during daily fleet maintenance operations are supplied primarily by Genuine Parts Company (dba Napa Auto Parts) through their on-site store service.
Genuine Parts has a nationwide network that allows them to source numerous categories of scarce or limited production merchandise. Genuine Parts area network includes the Napa parts distribution warehouse, which is located three miles from the newly constructed City maintenance facility, along with on-site parts services to numerous area organizations such as City of Chicago, Chicago Transit Authority (CTA), Illinois Department of Transportation (IDOT), Nicor Gas, and American Airlines. This area network allows for expedient procurement of common bulk parts and transfers of stock between stores which results in consistent access to required parts, bulk purchase discounts, stable inventory levels, and reduced vehicle downtime.
The parts inventory is maintained by Genuine Parts and no City funds are expended until merchandise is physically issued to the City for use.
In addition to the parts service, Genuine Parts provides free or low-cost automotive technical training for City technicians and access to specialized maintenance equipment such as transaxle service machines and hydraulic hose fitting presses.
The current agreement is due to expire on June 30, 2025.
DISCUSSION:
The City participates in various cooperative purchasing programs, such as Equalis Group, that bid products and services for purchase, allowing the City to satisfy its bidding process and obtain lower prices.
The Fleet Maintenance Division is pleased with Genuine Parts Company's products and services and seeks approval to renew the parts service agreement using Equalis Group contract #COG-2129B, to commence July 1, 2025, replacing the existing agreement.
New and replacement parts will continue to be sold and billed in arrears at a margin of seven percent (7%) above acquisition cost. Bulk lubricants, fluids, and tires will be sold at five percent (5%) above cost. All discounts from bulk purchases and manufacturer rebates will be credited directly to the City. The City retains the right to procure merchandise through its own means, when fiscally or operationally advantageous.
The new agreement would continue until the conclusion of the current Equalis Group master contract on April 30, 2026. To the extent that the Equalis Group contract is renewed or extended, this agreement may be renewed or extended with the mutual consent of both parties.
The proposed GPC-City of Aurora agreement and the Equalis Group master contract #COG-2129B are attached.
Genuine Parts Company is not indebted to the City.
Funding to satisfy the cost of parts purchased and the parts service is budgeted in accounts: 120-4431-418.65-01 ($1,450,000.00) and 120-4431-418.32-81 ($230,000.00) of the 2025 fiscal year.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
I recommend that the City Council adopts a resolution approving an automotive parts and supplies service agreement with Genuine Parts Company for the City's fleet maintenance operations using the Equalis Group purchasing cooperative.
cc: Infrastructure and Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving an automotive parts and supplies service agreement with Genuine Parts Company for the City's fleet maintenance operations using the Equalis Group purchasing cooperative.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City's Fleet Maintenance Division is responsible for the acquisition, maintenance, and eventual decommission of fleet assets; and
WHEREAS, new and replacement automotive parts utilized during daily fleet maintenance operations are supplied primarily by Genuine Parts Company (dba Napa Auto Parts) through their on-site store service. The current agreement is due to expire on June 30, 2025; and
WHEREAS, The City participates in various cooperative purchasing programs, such as Equalis Group, that bid products and services for purchase, allowing the City to satisfy its bidding process and obtain lower prices; and
WHEREAS, the Fleet Maintenance Division is pleased with Genuine Parts Company's products and services and seeks approval to renew the City's parts service agreement using Equalis Group contract #COG-2129B, to commence July 1, 2025; and
WHEREAS, the new agreement would continue until the conclusion of the current Equalis Group master contract on April 30, 2026. To the extent that the Equalis Group contract is renewed or extended, this agreement may be renewed or extended with mutual consent of both parties; and
WHEREAS, funding to satisfy the cost of parts purchased and the parts service is budgeted in accounts: 120-4431-418.65-01 ($1,450,000.00) and 120-4431-418.32-81 ($230,000.00) of the 2025 fiscal year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: approving an automotive parts and supplies service agreement with Genuine Parts Company for the City's fleet maintenance operations using the Equalis Group purchasing cooperative, contract #COG-2129B, for the term of July 1, 2025 through April 30, 2026 and the Director of Purchasing is hereby authorized to issue the necessary purchase orders, and further authorizes the Director of Purchasing to extend this agreement consistent with and contingent on future Equalis Group master contract extensions or renewals, with mutual consent from both parties, absent further Council action or approval.