S38-E29706 – Approve an ordinance awarding an agreement with Enterprise FM Trust for the leasing of vehicles through an interlocal purchase with The Interlocal Purchasing System (TIPS) in an amount not to exceed $2,933,662.20 for the Fleet Management Department on behalf of the Houston Fire Department.
SPECIFIC EXPLANATION:
The Director of the Fleet Management Department and the Chief Procurement Officer recommend that City Council approve an ordinance awarding an agreement with Enterprise FM Trust for a three (3) year term with two (2) one-year options to lease vehicles through an Inter-local purchasing agreement using the TIPS existing contract with Enterprise Fleet Management in the maximum contract amount not to exceed $2,933,662.20 for the Houston Fire Department.
The scope of work requires the contractor to furnish all supervision, labor, parts, tools, materials equipment, supplies, facilities and other miscellaneous items necessary to provide leased vehicle services for the City of Houston Fire Department.
This pilot program will provide 105 vehicles to the Houston Fire Department for a twelve month period. By utilizing this program the City will refresh the lease vehicle fleet every twelve months and have full service maintenance of the vehicles, therefore; reducing maintenance cost and eliminating the need for capital expenditures.
Revenues generated from the sale of 103 existing City owned vehicles that have reached their useful life expectancy will be used to offset the initial contract term vehicle lease cost. At the end of every 12 month lease cycle, the existing lease fleet will be turned in to Enterprise and liquidated. The funds from those liquidated vehicles will be used to offset the cost of the next year’s replacement vehicles. It is emphasized that the quantities may vary considerably due to changes in budget, personnel and events requiring extra vehicles. The contractor agrees to furnish leased vehicles as needed, in compliance with all local, state and federal requirements.
This recommendation is made pursuant to Section 791.025(a) of the Texas Government Code, which provides an exemption for Interlocal Cooperation Contracts for "A local government, including a council of governments, may agree with another local government or with the state or a state agency, including the comptroller, to purchase goods and services".
M/WBE Subcontracting:
M/WBE Zero Percentage Goal document approved by the Office of Business Opportunity.
Hire Houston First:
This procurement is exempt from the City’s Hire Houston Ordinance. Bids/proposals were not solicited because the department is utilizing an Interlocal Purchasing Agreement for this purchase.
Fiscal Note:
Funding for this item is included in the FY 2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
__________________________________ __________________ _________________
Jerry Adams, Chief Procurement Officer Department Approval Department Approval
Finance/Strategic Procurement Division
Estimated Spending Authority:
|
Department
|
FY 2021
|
Out Years
|
Total
|
|
Houston Fire Department
|
$197,286.60
|
$2,736,375.60
|
$2,933,662.20
|