Agenda Item Wording:
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Authorize the City Manager to execute a new Maintenance, Repair and Operations (MRO) contract with Lawson Products, Inc. to provide the small parts, fasteners, hydraulic hoses, clamps, and vehicle repair supplies for the Fleet Division, Solid Waste Division and Wastewater Treatment Plant Division of Public Works. The contract will include storage cabinets, machining tools and weekly inventory replenishment. The contract will be not-to-exceed $125,000 per year, with the costs split monthly through allocations to the appropriate City divisions whose vehicles and equipment are receiving the parts. This contract will be for one year, with 1 one-year optional renewal.
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Deadline for Action: 2/6/2023
Submitting Department: Public Works
Contact Name and Phone Number: Mike Morgantini, Fleet Supervisor, mike.morgantini@visalia.city <mailto:mike.morgantini@visalia.city>, 713-4182; Nick Bartsch, Public Works Director, nick.bartsch@visalia.city <mailto:nick.bartsch@visalia.city>, 713-4052
Department Recommendation:
Staff recommends that Council authorize the City Manager to execute a new Maintenance, Repair and Operations (MRO) contract with Lawson Products, Inc. to provide the small parts, fasteners, hydraulic hoses, clamps, and vehicle repair supplies for the Fleet Division, Solid Waste Division and Wastewater Treatment Plant Division of Public Works. The contract will include storage cabinets, machining tools and weekly inventory replenishment. The contract will be not-to-exceed $125,000 per year, with the costs split monthly through allocations to the appropriate City divisions whose vehicles and equipment are receiving the parts. This contract will be for one year, with 1 one-year optional renewal.
Background Discussion:
The Public Works Fleet Division is responsible for the maintenance of 620 vehicles and equipment and uses hundreds of small parts and fasteners for repairs and maintenance to always keep a minimum of 98% of the City’s vehicle fleet in service. As repairs and maintenance are completed, the cost of these small parts and fasteners is internally allocated to the divisions whose vehicles are receiving the work. Additionally, the Solid Waste Division uses these products for bin maintenance; and the Wastewater Division uses these products for Treatment Plant maintenance.
The City’s purchasing policy dictates that for purchases over $25,000 annually, a vendor contract must be established, and the vendor selection shall be done through a competitive bidding process. The current City contract C17020 for these services has expired and, therefore, it needs to be rebid. Due to the large number of small parts used at various rates, bidding this contract can be complex. In an effort to simplify this contract, Public Works staff performed a search for a cooperative contract to use. The OMNIA Partners cooperative has several vendors that have been awarded contracts through a competitive bid process and are available for local governments to “piggy-back,” which is allowed under the City Purchasing Policy.
The vendors available through the cooperative purchasing agreement have local area sales representatives that will be on site weekly to work with these Public Works Department divisions to maintain the inventory, but all have corporate offices located outside of California. Lawson Products is the City’s current supplier, and is located in Chicago, Illinois.
The reliability of the products supplied and used by these divisions is of the utmost importance as it directly relates to the safety of city employees and City residents. The quality of the metal products supplied by Lawson Products meets or exceeds National Consensus Standards, which is a standard set forth by Occupational Safety and Health Administration (OSHA) “to provide for the safety of the operator during the operating cycle” and should, therefore, be considered to be reliable.
This new contract will consolidate spending between the City’s Public Works Department’s divisions into one contract and allow for the lowest and best price for the parts and services needed based on cost comparisons of the more frequently used parts.
Staff recommends that year 1 term remain effective through 3/31/2024, with the additional one-year renewal option effective 4/1/2024 through 3/31/2025 so that the City’s contract dates coincide with Lawson’s OMNIA Partners contract R192005.
Fiscal Impact:
Expenditures in the last 4 years have reached an average $80,000 per year, with majority of that spending coming from the Fleet Division. Expenditures will post to the appropriate operating budgets for each division: Solid Waste Fund 441, Wastewater Treatment Plant Fund 431, and Fleet Fund 501. Fleet expenditures will be allocated out monthly to the various divisions whose vehicles required services.
Prior Council Action: None
Other: None
Alternatives: Competitively bid this service through the City’s Purchasing Department, rather than utilizing another organization’s bid.
Recommended Motion (and Alternative Motions if expected):
recommendation
Authorize the City Manager to execute a new Maintenance, Repair and Operations (MRO) contract with Lawson Products, Inc. to provide the small parts, fasteners, hydraulic hoses, clamps, and vehicle repair supplies for the Fleet Division, Solid Waste Division and Wastewater Treatment Plant Division of Public Works. The contract will include storage cabinets, machining tools and weekly inventory replenishment. The contract will be Not-To-Exceed $125,000 per year, with the costs split monthly through allocations to the appropriate City divisions whose vehicles and equipment are receiving the parts. This contract will be for one year, with 1 one-year optional renewal.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: OMNIA Partners Contract Partners
Lawson Products Award Letter from OMNIA Partners