Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 9/10/2024
ALL
Item Creation Date:

S29307.A1 - OEM replacement parts and repair services (Mac Haik Dodge Chrysler Jeep) - MOTION

Agenda Item#: 9.


 
                               
Summary:

AMEND MOTION #2020-0231, 5/30/2020, TO INCREASE the Spending Authority from $1,793,649.31 to $2,242,061.64 for Purchase of Chrysler/Dodge OEM Replacement and Repair Services for Fleet Management Department, awarded to MAC HAIK DODGE CHRYSLER JEEP - $448,412.33 - Fleet Management Fund

Background:

S29307.A1 - Amend Council Motion No. 2020-0231, passed on May 20, 2020, to increase the spending authority from $1,793,649.31 to $2,242,061.64 for the purchase of Chrysler/Dodge OEM replacement parts and repair services for Fleet Management Department.

 

Specific Explanation:

The Director of the Fleet Management Department and the Chief Procurement Officer recommend that City Council amend Motion No. 2020-0231 to increase the spending authority for the purchase of Chrysler/Dodge OEM replacement parts and repair service awarded to Mac Haik Dodge Chrysler Jeep from $1,793,649.31 to $2,242,061.64 for Fleet Management Department.

 

This award began on May 20, 2020, for a three-year term with two one-year renewal options in the amount not to exceed $1,793,649,31. Expenditures as of August 26, 2024, totaled $1,793,637.60.

 

The Fleet Management Department currently manages 630 Dodge vehicles, with 212 units added since the contract's inception. Many of these vehicles are nearing the end of their warranty period, increasing the need for repairs and replacement parts. The department's average monthly expenditure on Chrysler/Dodge parts is $33,000, indicating that the remaining funds will be insufficient to cover costs through the end of the contract. As the Fleet Management Department frequently receives urgent requests for repairs that cannot be delayed, increasing the contract’s spending authority is crucial to ensure continuous service.

 

M/WBE Participation:

The Office of Business Opportunity approved the zero-percentage goal document.

 

Fiscal Note:

Funding for this item is included in the FY25 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

 

 

 

 

___________________________________         ___________________________

Jedediah Greenfield, Chief Procurement Officer Department Approval Authority

Finance/Strategic Procurement Division              

 

 

Estimated Spending Authority

Department

FY2025

Out Years

Total

Fleet Management Department.

$448,412.33

$0.00

$448,412.33


Prior Council Action:

Council Motion No. 2020-0231 – Approved on May 20, 2022

Amount and Source of Funding:

$448,412.33 

Fleet Management Fund

Fund 1005

Contact Information:

Jedediah Greenfield, Chief Procurement Officer Finance/SPD 832-393-9126

ATTACHMENTS:
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CoversheetSigned Cover sheet