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Contract 48936-A1
,2,6456 ? �� � CITY SECRETARY RECEIVED CONTRACT N0. 110,30�30 ' a APR 212017 N oCITY C(OF FORT TY CREW RY �a OR CITY SECRETARY CONTRACT NO. !68 ` 9517 �Z� RESTATEMENT AND AMENDMENT OF CITY SECRETARY CONTRACT NO. 48936 FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT This restated and amended SERVICES AGREEMENT("Agreement")is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise Counties, Texas, acting by and through Jesus J.Chapa, its duly authorized Assistant City Manager, and GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS ("Contractor"), a Georgia Corporation authorized to do business in the State of Texas and acting by and through Stu Kambury, its duly authorized Division Vice President. City and Contractor are each individually referred to herein as a"Party" and collectively as the "Parties." WHEREAS, in Mayor and Council Communication P-12012, the City Council of the City of Fort Worth awarded the contract for Bid Solicitation 17-0144 to Genuine Parts Company d/b/a NAPA Auto Parts and authorized execution of a contract in an amount up to $20,380,805.00 for an initial three and one-half year term; and WHEREAS,NAPA Auto Parts and the City executed City Secretary Contract No.48936 for the initial thirty day period for the provision of parts supply and management services until the parties could complete negotiations and execute the final contract; and WHEREAS,the Parties agree to execute this restatement and amendment of City Secretary Contract No.48936. NOW, THEREFORE, City and Contractor, acting herein by and through their duly authorized representatives, enter into the following agreement to restate and amend City Secretary Contract No. 48936 to be and read as follows: 1. CONTRACT DOCUMENTS. The Contract documents shall include the following: 1. This Agreement for Fleet Parts Management and Supply Services 2. Exhibit A—General Terms and Conditions 3. Exhibit B—Cost Methodology 4. Exhibit C—Service Center Operations 5. Exhibit D—NAPA Staffing 6. Exhibit E—Demand Stock Inventory List All Exhibits attached hereto are incorporated herein and made a part of this Agreement for FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 1 of 40 OFFICIAL RECORD CITY SECRETARY FT.(NORTH,TX all purposes. In the event of any conflict between the documents,the terms and conditions of this Fleet Parts Management and Supply Services Agreement shall control. The term "Contractor"shall include the Contractor,and its officers,agents,employees,representatives, servants,contractors or subcontractors. The term"City"shall include its officers, employees, agents, and representatives. 2. SCOPE OF SERVICES. Contractor hereby agrees to provide the City with fleet parts management and supply services as described in this Agreement. 3. TERM. The"Initial Term"of this Agreement shall commence upon April 1,2017 (`Effective Date") and shall expire on September 30,2020,("Expiration Date"),unless terminated earlier in accordance with the provisions of this Agreement or otherwise extended by the Parties. This Agreement may be renewed one time for a period of two years at the City's option and upon mutual written consent of the Parties ("Renewal Period"). 4. COMPENSATIOIN. The City shall pay Contractor an amount not to exceed $20,380,805.00 for the Initial Term in accordance with the provisions of this Agreement and the Cost Methodology attached as Exhibit"B," which is incorporated for all purposes herein. If this Agreement is renewed,the City shall pay Contractor an amount not to exceed$12,706,003.00 for the Renewal Period in accordance with the provisions of this agreement and the Cost Methodology attached as Exhibit`B,"which is incorporated for all purposes herein. Contractor shall not perform any additional services for the City not specified by this Agreement unless the City requests and approves in writing the additional costs for such services. The City shall not be liable for any additional expenses of Contractor not specified by this Agreement unless the City first approves such expenses in writing, and Contractor shall not be required to perform services or provide parts to the City in excess of the not to exceed amount unless the City agrees in writing to pay for such services and parts. The City of Fort Worth is exempt from Federal Excise and State Sale Tax;therefore,tax may not be included in any compensation paid by the City to Contractor. City agrees to pay all invoices of Contractor within thirty(30)days of receipt of such invoice. In the event the scope of services are changed or modified or additional facilities are added by the City which Contractor is required to provide staffing for, then the parties will negotiate in good faith to increase the not to exceed amount to a mutually agreed upon level. Any such additional amounts shall be approved by the City Council of the City of Fort Worth and made an amendment to this Agreement before City shall be liable for such additional amounts. Notwithstanding anything to the contrary in this Section 4,the limitations set forth herein shall not limit the City's liability pursuant to Section 5.3 hereof. 5. TERMINATION. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 2 of 40 5.1 Written Notice. The City or Contractor may terminate this Agreement at any time and for any reason by providing the other party with 30 days written notice of termination. 5.2 Non-appropriation of Funds. In the event no funds or insufficient funds are appropriated by the City in any fiscal period for any payments due hereunder, City will notify Contractor of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to the City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds have been appropriated. The City reasonably believes that sufficient funds will be appropriated in the future to make all payments due pursuant to this Agreement. On an annual basis, the City shall seek approval from the City Council for sufficient funds in the City's annual budget to fund the City's obligations under this Agreement. The City will endeavor to notify Contractor by June 1 if it appears that the City's annual budget for the forthcoming fiscal year will not have sufficient funds appropriated to fund the City's obligations under this Agreement. 5.3 Duties and Obligations of the Parties. In the event that this Agreement is terminated prior to the Expiration Date or prior to the end of the Renewal Period, the City shall pay Contractor for services actually rendered up to the effective date of termination and Contractor shall continue to provide the City with services requested by the City and in accordance with this Agreement up to the effective date of termination. Financial responsibility and ownership of all parts inventory belongs entirely to the Contractor during the entire term of this Agreement. Upon termination, expiration, or non-renewal of this Agreement, Contractor shall have the option to require the City to purchase all non-NAPA inventory owned by Contractor which is located in the fleet facilities with the following limitations. The limited option shall include non-NAPA parts acquired by the Contractor through an authorized stocking request to maintain the City's requested stocking levels,limited to the approved maximum stock level, and any additional parts which the City requested to fulfill active work order needs. Additionally verified Non-NAPA parts retained and managed by the Contractor from the parties' previous parts supply agreement shall also be included in the parts the City is obligated to purchase upon the termination, expiration or non-renewal of this Agreement. The City shall purchase such Non-NAPA parts at the Contractor's most recent acquisition cost. The City shall additionally have the option to purchase all NAPA branded inventory, owned by Contractor and located in the fleet facilities at Contractor's current acquisition cost, which for NAPA branded inventory means Contractor's current NAPA Jobber net store acquisition cost, where"NAPA Jobber"means an auto parts store lawfully using the tradename or trademark "NAPA" with respect to which Contractor maintains no ownership interest. Contractor shall provide the City with a listing of all FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 3 of 40 NAPA and non-NAPA inventory owned by Contractor and located in the fleet facilities each month along with a statement of the level of NAPA and non-NAPA inventory. The City will have until the twentieth (20th) calendar day following the date the report was delivered to review the listing and request removal of any NAPA inventory or non-NAPA inventory added to inventory the City determines its reasonable discretion were unjustified or unnecessary. In the event the City does not respond in writing of its disapproval within said period, the added non-NAPA branded inventory will be considered acceptable, and the City will be obligated to purchase such products at the termination, expiration or non- renewal of this Agreement pursuant to the terms and conditions set forth in this section. City shall not be liable for any parts that exceed the maximum stocking level. 6. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION. Contractor hereby warrants to the City that Contractor has made full disclosure in writing of any existing or potential conflicts of interest related to Contractor's services under this Agreement. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Contractor hereby agrees immediately to make full disclosure to the City in writing. Contractor, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City.Contractor shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. Contractor shall notify the City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. 7. RIGHT TO AUDIT. Contractor agrees that the City shall, until the expiration of three (3) years after final payment under this Agreement, have access to and the right to examine at reasonable times any directly pertinent books, documents,papers and records of the Contractor involving transactions relating to this Agreement at no additional cost to the City. Contractor agrees that the City shall have access during normal working hours to all necessary Contractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Contractor reasonable advance notice of intended audits. Contractor further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final payment of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 4 of 40 Contractor obligation in this section to provide its books, documents, papers and records shall be limited to hard copies of such records. Contractor shall not be required to provide unrestricted access to the City to Contractor's electronic records. Contractor stipulates that it does not enter into subcontractor agreements as a normal practice within the business model it has proposed to the City. Therefore,any subcontracting would only be done with a business enterprise approved in advance by the City, in response to a request from the City. Therefore, Contractor's obligation to permit audits of its subcontractors shall be limited to the use of commercially reasonable efforts to enable the City to perform such audits. 8. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Contractor shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to and in accordance with the conditions and provisions of this Agreement, Contractor shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its officers, agents, servants, employees, Contractors and subcontractors. Contractor acknowledges that the doctrine of respondeat superior shall not apply as between the City, its officers, agents, servants and employees, and Contractor, its officers, agents, employees, servants, Contractors and subcontractors. Contractor further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Contractor. 9. LIABILITY AND INDEMNIFICATION. CONTRACTOR SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS) OR OMISSION(S), MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONTRACTOR, ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES. CONTRACTOR COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY,HOLD HARMLESS AND DEFEND THE CITY,ITS OFFICERS,AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO CONTRACTOR'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THISAGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE OF CONTRACTOR,ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES. 10. ASSIGNMENT AND SUBCONTRACTING. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 5 of 40 Contractor shall not assign or subcontract any of its duties,obligations or rights under this Agreement without the prior written. consent of the City. If the City grants consent to an assignment,the assignee shall execute a written agreement with the City and the Contractor under which the assignee agrees to be bound by the duties and obligations of Contractor under this Agreement. The Contractor and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the City grants consent to a subcontract, the subcontractor shall execute a written agreement with the Contractor referencing this Agreement under which the subcontractor shall agree to be bound by the duties and obligations of the Contractor under this Agreement as such duties and obligations may apply. The Contractor shall provide the City with a fully executed copy of any such subcontract. 11. INSURANCE. Contractor shall provide the City with certificate(s) of insurance documenting policies of the following minimum coverage limits that are to be in effect prior to commencement of any work pursuant to this Agreement: 11.1 Coverage and Limits (a) Commercial General Liability $1,000,000 Each Occurrence $2,000,000 Aggregate (b) Automobile Liability $1,000,000 Each accident on a combined single limit basis or $250,000 Bodily injury per person $500,000 Bodily injury per occurrence $100,000 Property damage Coverage shall be on any vehicle used by the Contractor,its employees, agents, representatives in the course of the providing services under this Agreement. "Any vehicle"shall be any vehicle owned,hired and non-owned (c) Worker's Compensation Statutory limits Employer's liability $100,000 Each accident/occurrence $100,000 Disease -per each employee $500,000 Disease-policy limit This coverage may be written as follows: FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 6 of 40 Workers' Compensation and Employers' Liability coverage with limits consistent with statutory benefits outlined in the Texas Workers' Compensation Act(Art. 8308— 1.01 et seq. Tex. Rev. Civ. Stat.) and minimum policy limits for Employers' Liability of$100,000 each accident/occurrence, $500,000 bodily injury disease policy limit and $100,000 per disease per employee. An annual certificate of insurance shall be submitted to the City to evidence coverage. 11.2 Certificates. Certificates of Insurance evidencing that the Contractor has obtained all required insurance shall be delivered to the City prior to Contractor proceeding with any work pursuant to this Agreement. All policies except Workers' Compensation shall be endorsed to name the City as an additional insured thereon, as its interests may appear.All policies shall contain a Waiver of Subrogation for the benefit of the City of Fort Worth. The term City shall include its employees, officers, officials, agent, and volunteers in respect to the contracted services. Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement. Contractor shall endeavor to provide the City with thirty (30) days' notice of any cancellation or reduction in limits of coverage. Contractor will provide City with ten(10)days' notice of cancellation due to non- payment of premium,with this term endorsed on Contractor's insurance policies.. Such terms shall be endorsed onto Contractor's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth, 200 Texas Street, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. 12. COMPLIANCE WITH LAWS. ORDINANCES.RULES AND REGULATIONS. Contractor agrees to comply with all applicable federal, state and local laws, ordinances, rules and regulations. If the City notifies Contractor of any violation of such laws, ordinances, rules or regulations,Contractor shall immediately desist from and correct the violation. 13. NON-DISCRIMINATION COVENANT. Contractor,for itself,its personal representatives,assigns,subcontractors and successors in interest, as part of the consideration herein, agrees that in the performance of Contractor's duties and obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals on any basis prohibited by law. If any claim arises from an alleged violation of this non-discrimination covenant by Contractor, its personal representatives, assigns, subcontractors or successors in interest, Contractor agrees to assume such liability and to indemnify and defend the City and hold the City harmless from such claim. 14. NOTICES. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 7 of 40 Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: To CITY: To CONTRACTOR: City of Fort Worth Genuine Parts Company D.B.A Attn: Wayne Corum NAPA Auto Parts Assistant Property Management Director Attn: Stu Kambury 4100 Columbus Trail Division Vise President Fort Worth TX 76133 635 Freeport Parkway Coppell, TX 75019 Facsimile: (817)392-5119 Facsimile: (972) 462-1058 Contractor shall notify the City in writing of any changes to the company name,ownership, or address. 15. SOLICITATION OF EMPLOYEES. Neither the City nor Contractor shall, during the term of this agreement and additionally for a period of one year after its termination, solicit for employment or employ, whether as employee or independent Contractor, any person who is or has been employed by the other during the term of this agreement,without the prior written consent of the person's employer. 16. NON—ENDORSEMENT. Contractor shall not issue any news releases or other statements pertaining to the award or servicing of the Agreement that state or imply the City of Fort Worth's endorsement of the Contractor's services. 17. GOVERNMENTAL POWERS, It is understood and agreed that by execution of this Agreement, the City does not waive or surrender any of its governmental powers. 18. NO WAIVER. The failure of the City or Contractor to insist upon the performance of any term or provision of this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Contractor's respective right to insist upon appropriate performance or to assert any such right on any future occasion. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 8 of 40 19. GOVERNING LAW/VENUE. This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas,Fort Worth Division. 20. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 21. FORCE MAJEURE. The City and Contractor shall exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including,but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots,material or labor restrictions by any governmental authority,transportation problems and/or any other similar causes. 22. HEADINGS NOT CONTROLLING. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 23. REVIEW OF COUNSEL. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 24. AMENDMENTS /MODIFICATIONS/EXTENSIONS. No extension,modification or amendment of this Agreement shall be binding upon a party hereto unless such extension, modification, or amendment is set forth in a written instrument, which is executed by an authorized representative and delivered on behalf of such party. 25. ENTIRETY OF AGREEMENT. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 9 of 40 This Agreement, including the schedule of exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Contractor, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. 26. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other parry is fully entitled to rely on this warranty and representation in entering into this Agreement. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 10 of 40 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples this day of_ �� ,2017. Date: 3 64117 CITY OF FORT WORTH: Form 1295: Lots • ►'113&ta 4_ GENUINE PARTS COMPANY d/b/a NAPA Auto Parts: Jesus J. Chapa 5 Assistant CityManager B Stu K m r Date: �� �'l i-t4e. ivision Vice President Date: RECOMMENDED BY: ATTEST: " �� NANCY E. RODERICK ,o` w Pis% Notary Public,State of Texas of ` Comm.Expires 02-05-2021 Notary ID 129294306 By; .? 1_ Steve Cooke Director of Property Management ATTEST: QF FOR?- � Date: S APPROVED AS TO FORM Mary J. Kays City Secretary AND LEGALITY: �J � • AS Date: / Contract Compliance Manager: Richard A. McCracken 4 1 F-1 By signing I acknowledge that I am the person Assistant City Attorney responsible for the monitoring and administration of this contract, including ensuring all performance and reporting CONTRACT AUTHORIZATION: requir ments. M&C: � �- ZO 12- FLEET 2.FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY"/a NAPA AUTO PARTS Page 11 of 40 OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Name of Employee A A561� Title FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 12 of 40 EXHIBIT A GENERAL TERMS AND CONDITIONS 37.0 DEFINITIONS ATA/VMRS American Trucking Association/Vehicle Maintenance Reporting Standards CodinfZ City The City of Fort Worth Contract/Agreement This Agreement represents the "Fleet Parts Management and Supply Services Agreement" including all exhibits attached to it and incorporated in it by reference, and all amendments, modifications or revisions made in accordance with its terms. Base Inventory This inventory contains parts and/or supplies that may be defined as branded or unbranded with a turnover rate of at least one (1)every 60 days. Demand Inventory This inventory contains parts and/or supplies that are requested to be stockedby the City,but are not issued on a routine basis of at least one (1)or more unitsper month. PMD City of Fort Worth's Property Management Department FFMS FASTERTM Fleet Management System (operated under CCG Systems Inc.), means the City's Fleet Equipment Management S stem for vehicle and equipment maintenance. Light Duty Vehicles Vehicles with a Gross Vehicles Weight under 10,000 pounds. NAFA Class codes 8,500 1000-2999 Medium/Heavy Vehicles with a Gross Vehicle Weight over 10,000 pounds.NAFA Duty Vehicles Classcodes(3,000-8999) NAFA Class Codes Standard vehicle and equipment classification system created and maintainedby National Association of Fleet Administrators Fleet OEM (Original Equipment Manufacturer) is a company that supplies equipment to other companies to resell or incorporate into another product using the Contractor's brand name. It also may be used to refer to the company that acquires a product or component and reuses or incorporates it into a newproduct with its own brand name. Contractor Genuine Parts Company d/b/a NAPA Auto Parts. On-Demand Inventory Parts order issued to the City within the time frames set forth in Section 38.6 hereof. Parts Order An order submitted by City personnel to Contractor for fulfillment in its entirety. Parts Orders are not severable by part itemization when submitting agreed upon Contract Reports in order for Contractor to achieve a more favorable acceptance rating. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 13 of 40 Parts Queue City of Fort Worth parts order tracking system. PMS Parts Management System operated by Contractor. Specialty/Off- A piece of equipment with unique or specialized performance road capabilities that allow it to perform prescribed tasks. NAFA Class Equipment Codes (0000-0999 &9000- 9999) Subcontractor Any person or entity with whom the Contractor agrees to contract with to provide any part of the Services, including subcontractors of any tier,suppliers and materials providers,whether or not in privity with Contractor. Contractor's third party delivery service providers and parts and equipment suppliers shall not be considered subcontractors. 9LO The parts inventory that was purchased by the City from previous contractors which NAPA Auto Parts later purchased from the City. Non-NAPA parts Any parts in inventory, including the 9LO parts inventory,which are not NAPA brand parts. 38.0 GENERAL REQUIREMENTS 38.1 [Intentionally Omitted] 38.2 Parts Operations/Vehicle and Eauigment Parts and/or Supplies 38.2.1 Contractor shall provide and deliver aftermarket and Original Equipment Manufacturer(OEM)parts and/or supplies as required by each of City ofFort Worth Departments, as the City's fleet is decentralized. PMD does not have absolute control regarding requirements specified by each of the City's Departments, but does have input based on technical expertise. Each City Department can specify the type/brand of each part for their vehicles. 38.2.2 Type/Brand specific parts are conveyed to the PMD Fleet Division personnel who interact with the onsite Contractor to ensure these requests and needs are met. Any and all parts, substituted or reworked must be approved by PMD- Fleet Staff prior to acceptance, Except as otherwise provided in this Agreement,all Items/Parts stocked and inventoried at City PMD facilities will remain the property of the Contractor until such part or item is requested and supplied via an official Parts Order via the Parts Queue System by City PMD personnel and delivered to said City personnel. Parts/Items shall be categorized as one of the following: 38.2.2.1 All Aftermarket Parts and/or Sup 1p ies shall be of similar kind and quality to parts and supplies made by the original manufacturer. 38.2.2.2 All OEM Parts and/or Supplies shall be made by the manufacturer of the original part. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 14 of 40 38.2.2.3 Warranty/Recall: All items supplied pursuant to this Agreement are subject to the terms of written warranties provided by the manufacturer of each part, and if the items supplied do not meet the City's standards, Contractor shall use reasonable commercial efforts to assist the City in processing all warranty claims that the City may have against a manufacturer. The manufacturer's warranty will be the sole and exclusive remedy of the City in connection with any claims concerning the parts or items supplied by Contractor in connection with this Agreement. ALL OTHER WARRANTIES, BOTH EXPRESS AND IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXCLUDED. Copies of the manufacturers' warranties are available upon request. Contractor agrees that it will assign and/or transfer any rights with respect to warranties that it has from the manufacturer to the City. Contractor agrees to confirm manufacturer's warranty term, and issue credits to the City for all parts presented as defective within the identified manufacturer's warranty period within two business days. The City acknowledges that Contractor will bill back to the City any portion of the previously issued credit that is denied by the manufacturer due to damage,misuse, or abuse. 38.2.3 During the Term of this Agreement,any Parts or Items sourced and/or brought into inventory on-site by Contractor that result in an incorrect part/item or an unacceptable substitute Part/Item, will be the financial responsibility of the Contractor unless City personnel specifically requested that exact Part Number brought into inventory. Also, City shall not be responsible for restocking fees associated with said incorrectly sourced or inventoried Parts/Items unless specifically requested by exact Part Number. The burden of proof is the sole responsibility of the Contractor to prove the incorrectpart was ordered by City. Upon return of the part to the Contractor personnel for return, the Contractor has three (3) days to submit the proper Return Materials Authorization documents to the Senior Contracts Compliance Specialist for review and determination or the Contractor becomes financially responsible for any restock fees incurred regardless of which party incorrectly ordered the part. Contractor shall be responsible for all parts that exceed the maximum stock level. City shall not pay Contractor for the cost of any parts that exceed the maximum stock level. 38.3 Contractor Staffing Management Requirements 38.3.1 Personnel shall not be employees of or have any contractual relationship with FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 15 of 40 the City. 38.3.2 An Account Representative, or Supplier designee, shall be assigned to the City and be readily available during Monday through Friday from 7:00am through 11:30 pm via telephone and/or email for regular business. Additionally, an experienced Account Representative must be available on a twenty-four (24) hour/seven(7)day a week basis,regardless ofnon-scheduled hours or holidays. (See Section 38.22.9.) 38.3.3 Unless inclement weather is deemed severe by a government agency, such as the Federal Emergency Management Agency (FEMA), local Police or Fire Departments, Contractor must be able to provide delivery service when requested by the City. Incidents such as rain are not adequate justification for Contractor to not perform its duties. 38.3.4 Contractor's personnel shall conduct themselves in a professional manner to all City employees at all times. Rude or discourteous behavior will not be tolerated and the offense shall be justification for termination of this Agreement. 38.3.5 Contractor shall obtain a copy a of the City's Alcohol Misuse and DrugAbuse Policy that shall apply to Contractor's employees in performance of this Agreement. The City is not responsible for testing, treatment programs and claims of any type. 38.3.6 Contractor's delivery personnel shall have a satisfactory driving record and possess a valid state of Texas driver's license for the designated class of vehicle they are operating. 38.3.7 Contractor's delivery personnel shall be in uniform which identifies the Supplier or possess an easily identifiable name badge located on the front of their person. 38.3.8 Contractor's personnel shall provide strong leadership for the operation and shall possess personal drive,self-motivation and take initiative to accomplish all Contractor's and City's goals. Contractor's personnel shall possess a willingness and ability to learn, analytical problem solving skills, high character, and always deal fairly with both employees andcustomers. Contractor's personnel shall possess a current ASE parts certification and other available certifications and driver's license requirements to perform daily functions of supplying parts and to perform reasonable activities as requested by PMD. The City retains the right to verify Contractor's personnel are certified ASE or other automotive parts recognized associations.A minimum of 75 %of the Contractor's staff, excluding drivers, mustpossess and retain a FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 16 of 40 current ASE parts certifications during the entire term(s)ofthis Agreement. 38.3.9 Contractor's employees will direct questions,comments,or concerns to PMD Parts or Maintenance Administration with a copy to Contractor and Contractor's designated area manager. 38.3.10 Contractor agrees that the only customer at the PMD fleet facilities will be the City's fleet with no transactions to employees or any other private enterprise. Other municipal or City fleet operations on a charge basis could possibly buy from this operation if approved in writing between Contractor and the City. 38.3.11 Contractor shall make the best and most cost effectiveparts supply decisions on behalf of the City and have a baseline understandingof all the requirements involved in this Agreement. 38.3.12 All Contractor personnel are required to take the City's annual IT Security Awareness training sessions and pass the on-line test. This is a mandatory requirement by PMD of all on-site Contractors who has access to computer network systems, including but not limited to the City's email system, and the City's internet. 38.3.13 Due to the significant and diverse size of the City's Fleet of heavy duty,off- road, and specialized equipment, the City requires that at least eight (8) of the Contractor's parts personnel have an extensive background and experience in the heavy duty fleet. The Contractor's heavy duty personnel must be familiar with and technically qualified to handle any parts research and requests from the shop technicians in a knowledgeable and expeditious manner. 38.4 Timeliness of Performance 38.4.1 The Contractor shall provide the Services and Reports within the term and within the time limits stated in Section 38.6, 38.18 and Exhibit B of this Agreement. Further, the Contractor acknowledges that TIME IS OF THE ESSENCE and that the failure ofthe Contractor to comply with the time limits described in this Agreement may result in economic or other losses to the City which shall be deducted from any funds owed to the Contractor by the City; in the event of non-performance due to an event of Force Majeure, the City will excuse the Contractor for failure to perform and reduce the liability associated with limited staffing and parts acquisitions when it is inadvisable, commercially impractical or illegal. Neither the Contractor nor the Contractor's agents, employees, or sub- Contractors are entitled to any damages from the City, nor are they entitled to be reimbursed by the City,for damages,charges,excess costs or FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 17 of 40 otherlosses or expenses incurred by the Contractor by reason of delays or hindrances in the performance of the Services, whether or not the delays or hindrances are caused by the City. 38.5 Standard of Performance 38.5.1 The Contractor shall perform all Services required of it under this Agreement with that degree of skill, care, and diligence normally shown by a Contractor performing services of a scope and purpose and magnitude comparable with the nature of the Services to be provided under this Agreement.The Contractor acknowledges that it may be entrusted with or have access to records of the City, and with respect to that information, the Contractor agrees to be heldto the standard of care of a fiduciary, provided, however, that the City's only remedy for the Contractor's breach of such fiduciary duty is a breach of contract claim and not a claim for breach of fiduciary duty. 38.5.2 The Contractor shall assure that all Services that require the exercise of professional skills or judgment are accomplished by Contractor's staff who are qualified and competent in the applicable discipline and appropriately licensed, if required by law. The Contractor shall provide copies of any such licenses. The Contractor remains responsible for the technical accuracy of all Services and Reports furnished, whether by the Contractor or its sub-contractors or others on its behalf. All Reports shall be prepared in a form and content satisfactory to the City and delivered in a timely manner consistent with the requirements ofthis Agreement. 38.5.3 If the Contractor fails to comply with the foregoing standards, the Contractor shall perform again,at its own expense,all Services,which for purposes of this section shall not include parts,equipment or the supply thereof, required to be re-performed as a direct or indirect result of that failure.Any review,approval, acceptance,or payment for any of the Services by the City does notrelieve the Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Reports.This provision in noway limits the City's rights against the Contractor either under this Agreement, at law or in equity. 38.6 Performance Requirements Contractor shall meet or exceed the performance requirements in this section 38.6 listed below for each category for all parts ordered. 38.6.1 Light Vehicle / Automotive Needs LIGHT DUTY PARTS FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 18 of 40 On Demand Parts Orders 90 % Within 2 days 95 % Within 3 days or less 98 % On Demand Parts for locations having Parts Rooms On-site (James Ave., Southside Service Center and Water Dept.,) must have fulfillment of request within twenty-five (25)minutes. • On Demand Parts for locations without On-site Parts Room (Village Creek and Brennan Body Shop),must not exceed a fifty-five(55)minute lead time for fulfillment. 38.6.2 Medium/Heavy Duty Vehicle Needs MEDIUM/HEAVY DUTY PARTS On Demand Parts Orders 60% Within 5 days 80% Within 10 days or less 90% • On Demand Parts for locations having Parts Rooms On-site (James Ave., Southside Service Center and Water Dept.,) must have fulfillment of request within twenty-five (25)minutes. • On Demand Parts for locations without On-site Parts Room (Village Creek and Brennan Body Shop),must not exceed a fifty-five(5 5)minute lead time for fulfillment. 38.6.3 Specialty/Off-road Vehicles and Equipment SPECIALTY/OFF-ROAD VEHICLES AND EQUIPMENT On Demand Parts Orders 60% Within 5 days 80 % Within 10 days or less 90 % 38.6.4 Contractor must have a minimum of three (3)vehicles,adequately staffed with Contractor personnel, available for pick-up and delivery of parts daily. Contractor's staff holidays, vacations or other personal time off should not affect the mandatory staffing requirements in this Agreement.If drivers are not in need of driving services at any particular time, the City retains the right to ask the Contractor to reallocate the personnel staff to a busier area in times of needs. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 19 of 40 38.6.5 All Performance Standard Requirements stated above reference complete "Parts Orders", not itemized Parts within an orderprocessed. Contractor will be evaluated based on the percentage of completed"Parts Orders"fulfilled. 38.6.6 Contractor agrees that if it is not operating at full staff, it will exercise the option of a"dedicated floater" to ensure the City's day to day operations are not adversely affected. A "dedicated floater" will be a Contractor employee who works at one of the City's fleet facilities temporarily until the position is filled in order to provide flexibility to locate a satisfactory replacement. If Contractor's staffing falls below the required number of positions, including the dedicated floater, then a penalty for not having full staff on-site will commence as follows: after thirty (30) days of losing a permanent employee at a position that puts the Contractor's staff at or below the required number ofpositions on-site,not including the"dedicated floater,"a five-hundred dollar ($500) per day charge will be assessed until such time as Contractor fills the position. 38.6.7 Contractor shall have the right to choose staff personnel. City shall make its Fleet facilities available for inspection and its Fleet staff available to meet with any final Contractor management personnel candidates. The City reserves the right to request that Contractor's staff personnel be removed from the City facility at the City's discretion in accordance with Section 38.22.5 based upon a determination by the City that the Contractor staff personnel have committed a violation of law, have committed a violation the City's policies or procedures, or a condition exists which in the City's reasonable discretion represents a deterrent to workplace safety or the workplace environment. The City reserves the right to instruct the Contractor to remove said personnel from active on-site duty until a thorough investigation by the Contractor's Human Resources department can be conducted. The determination for removal of Contractor's staff personnel from any City facility may then be reviewed and determined by the Assistant Director, Senior Contract Specialist and Fleet Superintendent. 38.7 Hours of Operation 38.7.1 Contractor shall provide personnel during all hours of operation for each of the City's Parts Facilities. Contractor agrees to provide staffing as set forth in Exhibit D of this Agreement. 38.7.2 Hours of operation for each of the City's Parts Facilities are set forth in in Exhibit C of this Agreement. The City reserves the right to specify hours of operation and/or change hours of operation. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 20 of 40 38.8 General Requirements 38.8.1 Contractor shall be wholly responsible for the on-site inventory and will provide a safe,neat and secured stock area. Contractor will conduct frequent inventories to ensure proper inventory levels are maintained and confined to their appropriate stock areas to help minimize parts order fulfillment times. 38.8.2 Contractor agrees that it will sell Parts to the City,when requisitioned, based upon the pricing model set forth in Exhibit B attached hereto. Contractor shall also pass to City at point of sale any eligible supplier master installer rebates Contractor receives on parts issued to City. 38.8.3 All hydraulic equipment, components and parts must meet JIC and SAE specifications. Contractor, as a supplier of parts manufactured primarily by third parties, is unable to warrant equipment, components or parts to certain specifications, beyond committing to specify all parts provided meet or exceed JIC, SAE or relevant OEM specifications, provided that Contractor shall not be liable for parts that the City specifically requests that do not meet JIC, SAE or relevant OEM specifications. 38.8.4 Contractor will provide personnel and management to operate the locations stated in Exhibit C of this Agreement. Contractor shall provide the personnel and scheduling as set for in Exhibit D of this Agreement. 38.8.5 Contractor will not issue any parts to any City fleet or the PMD without the proper work order or Parts Queue order. Each computer generated invoice will have the following specific information: 38.8.5.1 Each parts invoice will show the part number, description ofparts or service, price of each item or service, invoice number, date of transaction, P.O. and requisition number, equipment number and repair order number. 38.8.5.2 Each staffing invoice will show the cost for each separate staff position, benefits paid, cost for overtime and any other operational cost. City shall not be responsible for costs of overtime for Contractor's employees unless City requests in writing that Contractor's employees work overtime,or City and Contractor agree in writing that City will pay for Contractor's employee overtime costs for a specific date. 38.8.5.3 Each receiving employee of the PMD will be required to sign each invoice. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 21 of 40 38.8.6 Contractor will be required to set up specific account numbers for each different City department or fleet description as specified by the City, including Police,Fire,or Fleet.In certain cases,divisions within departments will also require specific account numbers to be established and maintained as specified by the City. 38.8.7 Contractor's inventory system must be capable of charging and or crediting part cores without mark-ups or shipping charges applied.The Contractor shall accept industry standard cores for rebuilding where the parts are acceptable as core exchanges including, but not limited to water pumps, alternators and engine blocks. 38.8.8 Contractor shall not utilize City equipment, employees or otherunassigned interior/exterior City facilities for any reason at any time withoutprior written approval by the PMD. This prohibition includes,but is not limited to,the use of motorized equipment. At no time, shall Contractor employees utilize City forklifts, cranes, vehicles, motorized carts, or similar items owned by the City. If the Contractor needs those materials to perform their duties onsite, then Contractor and City shall negotiate and agree in writing on the cost and terms on which Contractor shall provide such equipment Certified employee training and safety documents will also need to be submitted by Contractor to the Sr. Contract Compliance Specialist, as well as Contractor taking all necessary safety precautions required by federal, state and city laws.Safety equipment examples may include,but are not limited to,safety eyewear,hard hat protection, gloves, and cones. The City is under no obligation to provide these materials or labor. 38.8.9 Contractor must be capable of providing the City with a 24 hour a day operation with high levels of security and accountability. Contractor must be available, if requested,to provide services should the service center hours of operations expand for emergency situations. 38.8.10 Contractor must meet the City's compatibility and integration requirements for the City's FFMS and Parts Queue System and must allow for the possibility of adding or deleting parts facilities at a later date, converting additional vehicles, equipment, parts and supplies as requested by the City, and include new technological upgrade and training capabilities. 38.8.11 The City reserves the right to solicit repairs from any private vendorwhere said vendor may provide transportation, parts and/or labor for the repair of fleet equipment, provided that the City shall use Contractor as its primary supplier of the inventory and parts under this Agreement. 38.8.12 The respective PMD facilities reserve the right over the course of the FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 22 of 40 Agreement period to determine which products must be new, refurbished or recycled. 38.8.13 The respective PMD facilities will work with the Contractor throughoutthe Agreement period to determine the parts supplies and equipment to carry in inventory. 38.8.14 The determination by the City of the parts supplies and equipment Contractor is to carry in inventory may be based on usage, fleet size, the parts ordering turnaround time,or any combination of these factors or any additional factors. 38.9 Parts Eguinment 38.9.1 The Contractor shall procure and furnish all parts, materials, supplies and fluids required for the operation, maintenance and servicing of vehicles and equipment in accordance with the quality and availability standards outlined in this Agreement. 38.9.2 The City reserves the right to purchase parts directly from other sources for due cause, based upon the failure of the Contractor to perform in accordance with performance standards, special needs, or emergency situations which may arise during the term of this Agreement or any renewals and/or extensions. 38.9.3 The City reserves the right to direct the Contractor to purchase parts from suppliers designated by the City if the price or quality of the partprovided by the Contractor is not satisfactory. 38.9.4 The City reserves the right to direct the Contractor to solicit multiple vendors competitively and purchase and issue parts determined to be of the best value to the City. Conversely, if the City has documented,negative operational experience with a certain vendor, the City reserves the right to direct the Contractor to purchase parts from another vendor. 38.9.5 All issued parts shall be new and meet or exceed OEM specifications, unless City personnel formally request the Contractor to source a remanufactured or rebuilt part. The City will not accept "white box" (goods that lack a brand name) or gray market parts (parts that are unofficial, unauthorized or unintended by the original manufacturer). 38.9.6 The City reserves the right to determine the minimum grade rating of fasteners, including but not limited to nuts,bolts and washers. 38.9.7 The Contractor shall provide bulk fluids including but not limited to FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 23 of 40 petroleum fluids, washer fluids, diesel exhaust fluid, grease and lube oils as required by the City. The City reserves the right to demand the Contractor to maintain bulk fluids at a minimum predetermined capacity.Additionally, the City may require the Contractor to charge out bulk fluids by individual units of measure (pints, quarts, gallons, etc.). 38.9.8 The Contractor shall provide bulk gaseous products including but not limited to Freon, oxygen, acetylene and argon as required by the City. The City reserves the right to demand the Contractor to maintain bulk gaseous products at a minimum predetermined capacity.Additionally,the Citymay require the Contractor to charge out bulk gases such as Freon by individual units of measure(ounces,pounds, etc.). 38.9.9 Upon executing this Agreement, Contractor shall provide the City with descriptions and codes used to describe part categories and subcategories. 38.9.10 Upon executing this Agreement and prior to occupying any new City facility, Contractor shall work with the City to determine a beginning parts inventory to be stocked and maintained at each location.The beginning parts inventory, including minimum and maximum unit levels will be defined and mutually agreed upon for each location. 38.9.11 Financial responsibility and ownership of the parts inventory belongs entirely to the Contractor during the entire term of this Agreement. Upon termination, expiration, or non-renewal of this Agreement, Contractor shall have the option to require the City to purchase all non-NAPA inventory owned by Contractor which is located in the fleet facilities with the following limitations.The limited option shall include Non-NAPA parts acquired by the Contractor through an authorized stocking request to maintain the City's requested stocking levels, limited to the approved maximum stock level, and any additional parts which the City requested to fulfill active work order needs. Additionally verified Non-NAPA parts retained and managed by the Contractor from the parties' previous parts supply agreement (the 9LO parts inventory)shall also be included in the parts the City is obligated to purchase upon the termination, expiration or non-renewal of this Agreement. The City shall purchase such parts at the Contractor's most recent acquisition cost. The City shall additionally have the option to purchase all NAPA branded inventory, owned by Contractor and located in the fleet facilities at Contractor's current acquisition cost, which for NAPA branded inventory means Contractor's current NAPA Jobber net store acquisition cost, where "NAPA Jobber" means an auto parts store lawfully using the tradename or trademark"NAPA"with respect to which Contractor maintains no ownership interest. Contractor shall provide the City with a listing of newly acquired NAPA and non-NAPA inventory owned by Contractor and located in the fleet facilities each month along with a statement of the level of NAPA and non- FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 24 of 40 NAPA inventory. The City will have until the twentieth (20th) calendar day following the date the report was delivered to review the listing and request removal of any NAPA inventory or non-NAPA inventory added to inventory the City determines its reasonable discretion were unjustified or unnecessary. In the event the City does not respond in writing of its disapproval within said period, the added non-NAPA branded inventory will be considered acceptable, and the City will be obligated to purchase such products at the termination, expiration or non-renewal of this Agreement pursuant to the terms and conditions set forth in this section. City shall not be liable for any inventory that exceeds the maximum stocking level. 38.9.12 Prior to occupying a City facility, the Contractor shall work with the Cityto determine a beginning demand inventory to be stocked and maintained at each location. The beginning demand inventory, including minimum and maximum unit levels will be defined by the City for each location. 38.9.13 Written notification is required from either party for changes to minimum and maximum unit levels and when making additions to or subtractions from the demand inventory. 38.9.14 No later than 45 days after occupying a City facility, the Contractor shall provide the City with a planogram, which shall be mutually agreed upon for each location. 38.9.15 Financial responsibility and ownership of the demand inventory belongs entirely to the Contractor during the entire term of the contract. Upon termination of this Agreement,the City will purchase the demand inventory owned by the Contractor in accordance with the terms of Section 38.9.11 hereof. 38.9.16 The City's vehicle and equipment inventory changes constantly andparts stocked by the Contractor may become obsolete. The City and Contractor shall review both core and demand inventory biannually to determine obsolescence. The City retains the right to determine which parts are obsolete. Upon request by the City, Contractor shall make commercially reasonable efforts to return for credit and/or exchange for current stock needs any parts for vehicles or equipment which City determines are no longer needed,are out of date, or obsolete. Contractor shall provide City with bi-annual activity reports on reduction in obsolete inventories. Contractor is not permitted to stock any parts or components without approval from either the Senior Contract Compliance Specialist or Assistant Director over the Fleet Division. 38.9.17 The City reserves the right to inspect the quality of materials, supplies and equipment proposed to be furnished and to reject any items deemed notto FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 25 of 40 meet mutually agreed upon original equipment standards and performance. In the event that any part does not conform to the manufacturer's warranty, the City may return such part to Contractor, and Contractor will at the time of return, as the City's sole and exclusive warranty remedy and Contractor's and the applicable manufacturer's sole warranty liability, process the City's warranty claim with the manufacturer of the defective/non-conforming part and either issue a conforming part to the City or credit or refund to the City the price of the defective/non-conforming product. Upon said credit,refund or production of conforming part, the City's warranty against the manufacturer will be deemed assigned to Contractor. If, however, the manufacturer later rejects the City's warranty claim, Contractor will bill the City, as applicable, for either the price of the replacement part issued to the City or the amount of the credit or refund issued to the City for the returned part, and the City will pay such amount to Contractor in accordance with the payment terms set forth in this Agreement. Contractor shall make reasonable efforts to dispose of any defective, non-conforming part and issue a credit to the City upon such disposition. 38.9.18 At its discretion, the City may elect to purchase or maintain ownership of certain specialized items. 38.9.19 The City reserves the right to purchase parts and services from other sources if the Contractor does not obtain desired parts by start ofthebusiness the day after a request, and in emergency situations, to procure parts immediately. Contractor shall maintain the requested inventory level on all seasonal stock requested by City at the levels requested by the City for immediate procurement by the City from Contractor. The Contractor will be responsible for any cost above the cost specified in this Agreement in such cases. Additional charges incurred bythe City in this case can be deducted from the vendor's monthly invoice. 38.9.20 All items/parts delivered and inventoried at City PMD facilities must, if required by law, have the appropriate Hazardous Communication Standard Safety Sheets (HCS) (formerly known as Material Safety Data Sheets) included with the item. 38.9.21 Contractor's parts operation shall provide the following including: 38.9.22 A balanced inventory tailored to the City PMD maintenance needs and continually maintained by the Contractor's Inventory Specialist. 38.9.23 An inventory of stocked parts customized to the parts room service center locations and tailored to the specific equipment assigned to that specific service center which includes having readily available OEM, Heavy Duty and Off Road Parts. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 26 of 40 38.9.24 Access to all area inventories of automotive and heavy-duty OEM or approved replacement parts,paint, supplies and equipment. 38.9.25 Daily stock orders to the City's Fleet locations from Contractor's Distribution Center to replenish the inventory on a regular. This includes the Re-ordering of OEM stock. 38.9.26 Minimum of two deliveries daily from Contractor's Distribution Center and local store to supplement the normal stock orders. 38.9.27 Pick-up and delivery truck to procure non-stock parts from Contractor's stores or any other suppliers including overnight and/or airfreight on a timely basis. All expedited freight(overnight or 2nd-day) that are permissible to be billed to the City, are soled authorized by specific City personnel on a case by case basis. As no time can the Contractor opt for expedited freight and invoice it to the City without proper authorization. 38.9.28 Contractor must pass on to City as savings,all available manufacturer, dealer or distributor sales, discounts, rebates and all available parts warranties. 38.9.29 The Contractor will in addition to fleet maintenance items be required to stock certain special commodities that are not directly related to the maintenance and repair of the fleet, but may be required by the City shall include but not limited to, safety glasses, dust masks, gloves, soaps or even bug spray. 38.9.30 The Contractor's parts operation shall provide the following necessary equipment if needed or requested by the City after Contractor and City negotiate and reach a written agreement on the cost and other terms on which Contractor shall provide such equipment: 38.12.30.1 Lube equipment for dispensing oil and greases. 38.12.30.2 Hydraulic hose making equipment. 38.12.30.3 Paint mixing equipment to custom mix any color. 38.12.30.4 Gaseous dispensing equipment. 38.13.31 Provide training (both classroom and hands-on) through manufacturers' representative and factory training instructors by way of- 38.13.3 1.1 f:38.13.31.1 Digital Video Disc(DVD),data disc or written materials from the manufacturer with toll-free service number or live online FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 27 of 40 technical support by way of Internet Website. 38.12.31.2 The availability of factory representatives who can offer personal service and assistance as needed, should beprovided. 38.13.31.3 An advanced, fully automated training center located at PMD, James Avenue Service Center may be used for training when available by appointment. If there are any expenses associated with Contractor providing training required by this section,any such expenses shall be disclosed to the City and City and Contractor shall agree in writing to the expenses prior to scheduling the training. Any agreed training expenses shall be included as Operational Costs as defined in section 38.22.8. 38.13.32 Enter any information into the City owned computer atthe time of sale as required by PMD Administration including complete repair order information. 38.13.33 Provide current manufacturer's price sheets or otherrequested documents as needed. 38.13.34 Provide or implement specified contracts as needed.Nothing herein shall prevent the City or PNM from procuring repair parts from other vendors in the course of obtaining repair services from such commercial vendors, provided that Contractor remains the City's primary parts supplier. Provide key staff personnel to perform the services required by this Agreement that have relevant experience in providing services required by this Agreement. 38.14 Parts Disbursement Procedures 38.14.1 The Contractor's inventory system must have at a minimum the following capabilities: 38.14.1.1 Build a master parts inventory with traditional array of part data elements, including, but not limited to: part numbers, part descriptions, manufacturer, master category and sub category and/or ATANMRS codes, description,price,quantities,etc. 38.14.1.2 Set min/max order point stock levels for each part at each shop. 38.14.1.3 Track an audit trail of all part transactions, from purchase, FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 28 of 40 through issue,through reorder and any inventory adjustments. 38.14.1.4 Assign a primary vendor (and a secondary vendor if applicable)to every part. 38.14.1.6 Establish and maintain vendor information, including but not limited to:vendor name, address,terms,etc. 38.14.1.7 Load and designate parts as core or demand inventory. 38.14.1.8 Maintain a record of all part transactions, including but not limited to inventory items and non-stock items. 38.14.1.9 Provide and combine inventory and non-inventory data for each location for reporting purposes. 38.14.10 Retrieve/inquire on inventory located each City facility and provide ad-hoc reports. 38.14.11 Ability to transfer parts between storerooms located at all City facilities. 38.14.12 Set and monitor annual part turn rate goals at each facility. 38.14.13 Provide a history of all parts issued. History of parts issued must include at a minimum: part numbers, part descriptions, storeroom, manufacturer, master category and sub category and/or ATANMRS codes,description,price,quantities issued, average issued monthly. 38.14.4 Set replacement part manufacturer warranty period for parts. Track manufacturer warranty replacements at the vehicle level and alert the person placing an order of the existence of a manufacturer's warranty for the part. Print and scan bar-coded labels on bins and parts. 38.14.5 Track/report part obsolescence for all City facilities,detailed by each facility. 38.14.6 Forecast usage by facility and recommend restock or new stock part order listing. 38.14.7 Include data for each part order as submitted by the City. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 29 of 40 Such data includes but is not limited to: work order or independent issue number, asset number, repair code, technician ID. 38.14.8 Track orders throughout their cycle and keep history for analysis, especially on response time. 38.14.9 Allow limited or read only access for City personnel to verify data. 38.14.10 The Contractor must track and report on all phases of part orders to assist in determining response times,including but not limited to: order number, part number, work order or independent issue number, Technician ID, date/time order placed by a technician, estimated delivery date and time if part is not in inventory, date/time order received by Contractor if part is not in inventory, date/time order received by a technician, order notes. 38.14.11 The Contractor must track and report on all parts on order with lead times greater than one hour;and provide updates on parts on order throughout each work day to designated PMD personnel. 38.14.12 The Contractor will input all part activities in its own parts' inventory system and is required to input the same data or data as directed by the City into the FFMS for reconciliation purposes. 38.14.13 Prior to disbursement,all part transactions must be entered in the FFMS. A part will not be accepted by City personnel unless the transaction is recorded in the FFMS. 38.15 For part orders that require shipping and freight,the Contractor shall notify designated City personnel of the cost and time frame for the part to be delivered to the City. Upon receipt of notification,the City will direct the Contractor on how to proceed with the order. The City may preauthorize shipping or freight charges that do not exceed a set amount. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 30 of 40 38.15 Parts Inventory Requirements 38.15.1 The Base Inventory will be the responsibility of the Contractor upon execution of this Agreement. 38.15.2 The Contractor will control the Base Inventory levels of parts/supplies as they best see fit to meet the needs of the City. 38.15.3 On Demand Stock Inventory parts/supplies, despite moving slower, will still be the Contractor's responsibility to keep in stock for the City. 38.15.4 The PMD Senior Contract Compliance Specialist must approve any additions or deletions to the Demand Stock Inventory list including the minimum and maximum stocking levels identified in Exhibit E of this Agreement.This includes all parts necessary for the City to conduct day to day operations. The information in Exhibit E consists of the Demand Stock Inventory list as of April 1,2017. 38.15.5 At the termination of this Agreement,the Demand Stock Inventory will be purchased by the City in accordance with Section 38.9.11 hereof or acquired financially by the next contractor. 38.16 Warranties. Subject to Section 38.2.2.3 hereof: 38.16.1 Contractor shall maintain manufacturer warranty records of items sold to the City. 38.16.2 Any credits due to the City will be issued as covered under warranties. 38.16.3 Contractor will use commercially reasonable efforts to process any warranty claims and to resolve any and all issues concerning warranties with the applicable manufacturer. Any claims as to failure to fit and/or work on the intended application will be addressed as a warranty claim to the part provider. On-site replacement for defective,inferior,or non-fit FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 31 of 40 items will be requested, but such claims are subject to the part manufacturer's warranty terms. 38.16.4 Contractor will be responsible for entering all warranty information into the City's FFMS. 38.17 Electronic Computer Systems 38.17.1 The Contractor will supply the City Fleet facilities with its own computers,with the ability for separate account numbers for billing purposes. 38.17.2 Contractor computer systems must have the capability of setting as many account numbers as deemed necessary by the City to keep departments separate and/or supply codes audited. 38.17.3 Contractor must provide a computer system that will be compatible and work with either the City's and/or Contractor's operating system,which includes the following capabilities including: • Invoicing, Cataloging,Bar Coding,Master Interchange, Inventory Control, Custom Pricing, Parts in Stock Information, Parts on Order Information, Parts on Backorder Information,Lost Sales/Distribution Reports and Analysis, Automatic Stock Levels by Part, Parts Cost and Ability to verify Stock and Order from any Distribution Center in the United States. • Provide all daily, weekly and monthly reports generated by the City's and/or Contractor's computer operating system upon request by authorized PMD personnel. • Properly invoice all parts at the time of sale/disbursement. • Provide a detailed statement at the end of the each week showing all invoice numbers, equipment numbers, repair order numbers, account numbers, and the amounts purchased. 38.17.4 The computer system will remain property of the Contractor,but all data transaction information will be sent to the PMD FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 32 of 40 information system computer in the event of termination of this Agreement. 38.17.5 The Contractor computer will complete inventory control and invoicing functions as well as cataloging and part number interchange capabilities and each system will have aprinter with Personal Computer(PC)and monitors as needed. 38.17.6 Contractor will be required to use the City's existing FFMS to enter all parts transactions information in addition to their Contractor's computer software system. 38.17.7 Upon invoicing the City, Contractor agrees to enter transactions: • Into City of Fort Worth, Property Management Department FFMS as directed to provide information that PMD may require. • The system will be readable by computer systems used by City and Contractor and integrated with the system's inventory control plan. 38.18 Re on rting Requirements 38.18.1 All Reports must be comprehensive of all parts sales and inventory. All Reports are required to specifically identify each part number in as much detail as possible. 38.18.2 Daily Reconciliation Report. The Contractor shall submit a daily reconciliation report. The Daily Reconciliation Report shall reconcile all parts transactions between the Contractor's PMS and the City's FFMS. At a minimum this report shall include, Part Order number, Invoice number, Work Order or Independent Issue number,Part number,Part quantity,Part unit price, extended price, Part description, date and time Part was issued. 38.18.3 Daily Availability Report. The Contractor shall submit a separate daily report, which itemizes Parts issued and time required to issue those Parts from the time a request is received from the mechanic.At a minimum,this report shall include,Part Order number, Invoice number, Work Order or Independent Issue number,Part number, Part quantity, Part unit FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 33 of 40 price, extended price, Part description, date and time Part was requested,and date and time Part was received,and the estimate date and time of arrival of each Part on order. 38.18.4 Weekes Warranty Reports. The Contractor must submit a weekly report to the City that fully describes the parts eligible and supplied, by line item and with costs assigned under the warranty provisions of this Agreement. 33.18.5 Monthly Invoice Report. A report itemizing all parts invoiced for the month shall be submitted with the monthly invoice. 33.18.6 Monthly Availability Report. The Contractor must submit separate monthly report itemizing Parts issued and time required to issue those Parts from the time a request is received from the mechanic. At a minimum, this report shall include Work Order number, Part number, Part description, date and time Part was request, and date and time Part was received. 38.18.7 Annual Report. On the calendar year of the effective date of this Agreement and every other anniversary date thereafter, the Contractor must submit to the City a written annual report that summarizes the year's activity in a format agreed upon by the parties. 38.18.8 Ad Hoc Reporting.The City reserves the right to obtain from the Contractor additional reports as required at no additional cost, which reports are reasonably capable of being produced from data in the Contractor's PMS. 38.19 Records and Record K ' g 38.19.1 The Contractor shall maintain all records including, but not limited to, Part costs, salaries, and overhead expenses. All records pertaining to charges made to the City may include copies of electronic and hard data, books, records, correspondence, instructions,manuals,receipts,vouchers,time cards, and memorandums relating to this Agreement a in accordance with Texas law. 38.19.2 Access to this information shall be strictly limited to information directly related to the Parts and Services supplied to the City herein. 38.19.3 The City agrees to cause any employee or agent to sign a FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY dib/a NAPA AUTO PARTS Page 34 of 40 confidentiality agreement, provided by Contractor and subject to review by the City Attorney's Office, prohibiting such employee or agent from disclosing information not directly related to City information that may be revealed in compliance with this section. 38.19.4 The Contractor will provide and maintain fully current Hazardous Communication Standard Safety Sheets (HCS) stored on-site in hard copy book format as well as electronically stored for access off-site. 38.19.5 Contractor's computer system will store all transactions for a period of five (5) year, at which time they will be transferred to disk for retrieval by self and providing copy to the City. 38.20 Managing2rotecting Contractor's Assets 38.20.1 Insure proper maintenance and protection of the Contractor store facilities, vehicles, equipment, inventory and other physical assets of the Contractor. Request upgrades or additions to operational facilities and equipment in a timely manner to insure safety and efficiency. 38.20.2 Minimize operating expenses and use Contractor funds and assets in the Contractor and City's best interest. Contractor must obtain approval for any overtime outside normal hours. 38.20.3 Follow and enforce all company operations procedures, policies, reporting requirements including Security Programs, Hazardous Materials Programs and all City standard procedures. 38.20.4 Adequately maintain, secure and submit all documents, reports and other administration required to operate the business and as requested by Contractor management and the City's PMD Maintenance Supervisor. 38.20.5 Insure stockroom area is clean and orderly at all times and in accordance with applicable health and safety guidelines and regulations. 38.20.6 Manage and maintain the integrity of the Contractor's inventory through accurate paperwork and in-store security measures by accurately complete daily paperwork and submit on a timely basis. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 35 of 40 38.21 City of Fort Worth Responsibilities 38.21.1 City will supply to the Contractor, space for the City's onsite Parts Services including restrooms, water/sewer, lights, local telephone, heat, air conditioning, electricity,janitorial services and other services deemed necessary by the City. 38.21.2 Depending on cost, City may direct the Contractor to obtain some maintenance, repair or other services from non- Contractor sources at a lower percent markup as profit for obtaining repair services. 38.21.3 City will maintain parts facilities separate from normal City business and operations to the greatest extent possible and per any Federal, State or Local requirements. 38.21.4 City is self-insured or carries suitable policies for Automotive Liability and Worker's Compensation,Property or Casualty for all City facilities including those utilized by Contractor for claims resulting from gross negligence by the City of its employees. City and Contractor both agree to promptly notify each other of any claims filed and to work together when necessary and provide required information to resolve any such claims. 38.22 Additional Requirements. Assignments and Job Functions 38.22.1 Manage each PMD parts fleet facilities operation by providing excellent customer service in all areas of parts/materials warehousing and sales. 38.22.2 Provide positive leadership to City and Contractor employees to encourage customer relations and efficiency through effective personnel and asset management. 38.22.3 Fully implement and support City fleet programs as set forth in this Agreement. 38.22.4 The City reserves right to request that Contractor's personnel performs reasonable Fleet Management activities in addition to those required by this Agreement when appropriate. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 36 of 40 38.22.5 The City reserves right to request Contractor discipline or dismiss any employee that is deemed detrimental to the parts operation; this includes but is not limited to any Contractor personnel whom City personnel believe have committed a violation of law, have committed a violation the City's policies or procedures, or a condition exists which in the City's reasonable discretion represents a deterrent to workplace safety or the workplace environment.The City reserves the right to instruct the Contractor to remove said personnel from active on-site duty until a thorough investigation by the Contractor's Human Resources department can be conducted. The determination for removal of Contractor's staff personnel from any City facility may then be reviewed and determined by the Assistant Director, Senior Contract Specialist and Fleet Superintendent. 38.22.6 Contractor shall be responsible for obtaining any permits and/or license to start and complete all phases of installation and operation of the on-site vehicle, equipment maintenance parts facilities. Cost to obtain any permits and/or license shall be borne by the City. 38.22.7 All additional Contractor responsibilities are specified throughout this Agreement via requirements and recommendations. In the event of emergency situations, including but not limited to, inclement weather, public safety incidents,special events, etc., the Contractor is required to mobilize the Parts Services Areas and provide parts and management services for the durations of the emergency situation. Such services include adequate staffing levels to ensure proper coverage to match the Technicians levels at each Fleet Division Shop operating during the emergency situation, as well as drivers to pick up and delivery parts needed. 38.22.9 Contractor is responsible for all costs and fees incurred by them while establishing new Parts Service Areas of any/all new and expanded Fleet Service facilities during the terms of this agreement. Such costs may be reimbursable by the City as Operational Costs. City shall pay all costs for any additional shelving. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 37 of 40 38.23 Pricing Methodology 38.23.1 All costs associated with Contractor delivering the requested services to the City shall be as set forth in this Agreement, including,but not limited to the Pricing Methodology set forth in Exhibit B. 38.24 [Intentionally Omitted] 38.25 Compensation-Basis of Payment 38.25.1 Payment will be based upon Performance Measurements specified in this Agreement. 38.25.2 The City will reimburse the Contractor for the monthly expenses necessary to run the City's Parts operations after invoiced by the Contractor at the end of that month. These expenses will be limited to those specified in the Contractor's annual budget (and operating statement pro forma) and approved by the City in this Agreement. These expenses must adhere to the City's invoice approval process. 38.25.3 The City will pay for all parts issued in FFMS and properly reconciled during the month after invoiced by the Contractor at the end of that month. 38.25.4 One (1)payment will be issued monthly for each item in Section 38.26.1 and 38.26.2. If Contractor fails to perform or supply requirements referenced in the Reporting section, up to a one and one half (1.5) percent reduction will be assessed and deducted against each monthly payment made to the Contractor from the City. 38.26 Criteria for Payment At the end of each the month, the Contractor will submit an invoice, Contractor's monthly operating statement and any Reports required by the City to substantiate the costs and any expenses associated with running the parts facility for the City. No other invoices for Parts or expenses for running the City's parts operation shall be accepted or paid. Costs may not exceed the budgeted amount, unless otherwise documented and agreed upon by the Senior Contract Compliance Specialist and Assistant Director.The City will determine whether any rates, costs, and expenses invoiced are in accordance with the Budget submitted by Contractor and the terms of this Agreement.The City will FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 38 of 40 review for reconciliation and will pay only for those Parts issued in FFMS, properly reconciled per the daily reconciliation reports, and interfaced to the Contractor's PMS.Parts issued by the Contractor and subsequently returned by the City unused, undamaged, in their original packaging, and in resalable condition must be fully credited back to the work order through FFMS immediately upon return to the Contractor. If the parts are not submitted on the approved Return Material(s) Authorization form to the Senior Contract Compliance Specialist within 3 days of being returned to the Contractor personnel along with all pertinent documents, any restock fees imposed to return the parts are the responsible of the Contractor regardless of who is responsible for the incorrect part(s)ordered. Parts returned after installation as defective or unusable for the application will be processed and credited as "warranty returns." 38.26.1 Costs for all Parts will be the price stated in the originally submitted Proposal(s) by the Contractor. Pricing shall be provided in electronic format (in readable spreadsheet, Excel, etc.) upon issuance of the initial Notice to Proceed and upon any price changes approved by City. Pricing on Contractor's Parts will be in accordance with Contractor's acquisition price from Contractor's suppliers and outside vendors in effect at time of purchase (copies of these invoices shall be available for review by the City); in no case will the City pay more than Contractor's price plus ten(10)% for any part. 38.26.2 The Monthly Availability Report will be reviewed by the City. After the initial three(3)month period from the first day of the Full- Service Phase, the Contractor shall be held to the performance requirements outlined in section 38.6 with respect to Contractor's fulfillment of requests for On-Demand Inventory, and reductions and/or incentives shall be assessed based on each monthly invoice, tallied by each quarter, then applied to the monthly invoice immediately following the prior quarter in accordance with Chart C. If Contractor fails to provide all ofthe reports in section 38.18, the Contractor shall have been deemed to have performed at the 0 - 50% performance rate set forth in Chart C below and the -1.5% reduction rate set forth in Chart C shall apply and be applied to the monthly invoice immediately following the prior quarter;provided that it is understood and agreed that such reduction shall be the maximum reduction and the reduction shall be without duplication. The City will have fifteen (15) days to review the invoice(s) and supporting reports and use other reports the City deems necessary for independent verification before submission is made for payment. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 39 of 40 [CHART C on Following Page] CHART C Criteria Standards for Invoice Reduction / Incentive Payment Plan for Part Orders Issued to the City. Performance Rate Reduction / Equipment Categories Incentive Rate 0 -49 % -1.5 % All Categories 50% -69% -1.0 % Light Duty 70%-89% -.5% Light Duty 90%-92% .0% Light Duty 93% -95% +.5% Light Duty 96%-98% +1.0% Light Duty 50% -54% -1.0% Medium/Heavy,Off Road& Specialty 55% -59% -.5% Medium / Heavy, Off Road Specialty 60% -64% 0% Medium/Heavy,Off Road& Specialty 65%-74% +.5 % Medium/Heavy,Off Road& Specialty 75% -84% +1.0% Medium / Heavy, Off Road & Specialty 85% - 100% +1.5% Medium / Heavy, Off Road & Specialty * The Criteria Standards for Invoice Reduction or Incentive Payments will be based on a daily weighted average by shop and calculated once amonth. FLEET PARTS MANAGEMENT AND SUPPLY SERVICES AGREEMENT GENUINE PARTS COMPANY d/b/a NAPA AUTO PARTS Page 40 of 40 Exhibit B Cost Methodology TECHNICAL PROPOSAL 38.28.11 PARTS PRICING AND OPERATIONAL COST NAPA Integrated Business Solutions employs a gross margin pricing model in its operations. With more than 380 locations and more than 23 years of experience in vendor managed inventory solutions, we have determined this is the best way to provide consistency and transparency in our pricing. With more than 1,300 unique manufacturers and one million+ pant SKUs, this allows us to bill our customers based on actual acquisition cost of parts,with a separate accounting of operating costs of our services,so you know exactly how much your parts cost and how much it costs to operate your on-site parts storerooms. We want you to know we take this relationship very seriously and have taken steps to reduce the overall cost of doing business.We worked extremely hard on two(2)specific areas that make an impact: 1. Cost of Goods(Parts) 2. Management Fee Cost of Goods Because of our historical parts data,we know every SKU you purchase,your part and brand preferences. Therefore,we took and reviewed every SKU purchased and vendor utilized and have lowered cost.Overall our work will affect more than what is reflected on the market basket in the bid. • We reviewed every historical SKU for part options and on the identified numbers which resulted in an overall proiected savings of 38111 • We reviewed every SICU on the market basket of parts for options and proiected savings of 36% • Because of our supplier relationships and volumes,we negotiated lower pricing with a number of our key suppliers.For example:we were able to lower overall pricing on Ford by 2*/o and certain suppliers have offered bulk purchase discounts on Red Box Ford and Blue Box GM parts. Management Fee • We lowered the cost of parts to by]%to 8%gross nrargirr on standard and specialty Parts • We lowered the cost of tires by 5% to 5%,cross margin • We lowered"Big Ticket"(single items over$3,000)by 5%to 5%gross margin 38.23.1.4 Parts Pricing Methodology All parts, NAPA and Non-NAPA, will be invoiced at acquisition cost plus 0%, including rebates, or discounts available at time of purchase.Any rebates or discounts received after initial invoice will apply to cost of eoods on monthly operational billing and be applied to operational expenses. Since we also sell NAPA products and do not have to source 100%of goods from outside suppliers,we are able to significantly reduce our customers acquisition cost of goods.This strategy benefits the City for the following reasons: • Separating parts and operational costs gives transparency in prices and cost distribution • We only make the margin we say we'll make and don't keep any savings for ourselves—our savings become your savings • Competitors charge you an obscure flat price that doesn't show you how much actually goes towards the parts you buy • NAPA branded parts are sold at cost—coinpetitors mark them up • We pass on all rebates,discounts and warranty recovery dollars to you This concept allows the City and NAPA to jointly define the structure and modify it as needed to account for changes within the City's Fleet Management Criteria i.e.budgetary funding,service level commitments, departmental services provided, adjusted service level commitments. Integrated Business SOlUtiOnS, POWEP&D BY IG1A TECHNICAL PROPOSAL 38.23.1.1 Staffing Cost Our conunitment has always been to provide a mutually agreeable team capable of managing the inventory needs to compliment the fleet operation's productivity goals. While we always quote our salary range and typical personnel tax and benefit expenses,our actual expenses associated with the operation are passed on with no markup. Our stair will be seasoned parts people with substantial experience exceeding the requirements outlined in this RFP for parts industry experience.Our goal is to hire within our competitive salary range.If we can find adequately skilled and agreeable personnel on the lower end of the scale,these savings will be passed on to the City in the form of reduced expenses. We feel our benefit package is prudently geared towards employee retention with competitive return on expenses. 38.23.1.1-.2 Sta ffing Levels As the incumbent,we have diligently worked with the City of Fort Worth to develop effective staffing.The number of people and/or scheduling will continue to be mutually agreed upon between NAPA lBS and the City to coordinate with their maintenance schedules.We have provided a full listing of staff for each current site, along with scheduled hours and wages, in the appendix. While we feel the staffing levels proposed, will give optimum service to the City based on our experiences. We also realize that the City is reviewing their workforce assignments and are open to discuss our approach to staffing and are willing to make appropriate adjustments through this collaboration. 38.23.1.3 Contingencies The staff will be available to manage the parts room during any severe maintenance overload or for support during any declared emergency.Any required overtime will be billed to the City at one and one half times the normal pay rate for the employees involved.Each situation will be approved in advance by appropriate and agreed upon management of Fleet Maintenance Division. 38.23.1.5 Operating Cost Methodology The operating expenses of our on-site parts rooms will be billed on a separate monthly bill in their entirety at cost to show all operating expenses and billing categories for expenses to run these operations.NAPA TBS will provide the customer a monthly parts detail with the parts acquisition cost and gross margin detail for both NAPA and non-NAPA parts, as well as an audited operating statement to allow the customer to more easily identify and segment their costs.The monthly invoice will detail the categories of these costs. 38.23.1.5 Management Fee The City shall be billed a management fee on a monthly basis in accordance with the terms of our proposal. The management fee will include the consolidated operational costs and an amount necessary to achieve our agreed net profit.Our agreed profit shall be based on a two tiered calculation related to parts and service invoicing.Tier one calculation shall achieve an 8%net profit on Standard and Specialty parts,and typical component repair service invoices.Tier two calculations shall achieve a 5%net profit on tires,and certain sublet equipment repair billings outside the normal scope and practice of a parts operation. Additionally,NAPA understands that there are occasionally items that are high dollar"paperwork only" special orders not managed in inventory. Our proposed billing methodology on these"big ticket"(single items over$3,000)will be to achieve a 5%net profit,a net savings of 5%over current billing process. 38.28.12 PROJECT APPROACH Through more than 23 years of experience providing inventory and supply chain management solutions and expanding our offerings,technologies,vendor base and expertise,NAPA IBS has identified a few key areas where our customers look for excellence in helping them improve their fleet maintenance operations. Any time NAPA IBS partners with an organization,our goal is to deliver best practices in each of the following areas in order to keep you running smoothly. Integrated Business Solutions POWERED 13Y Response . •FP No.11-0144 1 Cityof rortr Business Solutions STAFFING & COST Pay Rate Range maKillm SOUTHSIDE luif�iH�ET.1I,�t�:�ffl'�o�I���oU1����uLaL"�ti���i�itt• ►�1ft��Le�f����k7f:�I�7 JAM ES:AV [one IuF4i1T3�e��liri7�[Rd]� �aeI1LL�.ioI�la�®��Isi:if�Y��ft�9teLia7�:..:rr��:1.Y:� � ..o �i e l egy !•u e•u f[`tfit�o� 11el o ENNNEMSERN . C•TT�Pei ��I[�d�l�FYdif;�1!� e o=u e e!•u go-IN "I mite I mm"I fel �. - � ...® a! �u � /o•u ®T:l��iia �6�� � •'a f��a� • •.il .. : �oou oo'u P: �Teoiik� lilMORE,m1mg-T-r-A ATERIDEP . {f"F—TaF7x-m f C•'"I, 9-U . C•LiRel�iei[�L�filft:1'u73�f[ !e=u � el!•►Td'i®�d� 1 � a o f�i.IC�o oZ� a o .oIe� .o fTi[R�� u. .e .,- o_u � oe•► �i7l�l•�� • • 1 • :.a a ' ►�• iT MOtTirt�tt® I o u !, ►� '•• � %/i ��[��lit�.'�iF��ti# ® d�111112MIM111111- ee - 1' 1•' � i1 �1 1! . !1 !/ .1! .1 =110m MMUM-In.,IM M _u !o•u mill 01 f 10 eo0 9 WIT41 .e/ WE.11 �C•fI�- W- w7ifilfi� e o a 1 e•u ee : a 10 1/ 1/ �® ��—Total Staff Integrated Business Solutions. www.NAPA-IBS.com 60 POWERED BY Response to RFP No.17-0144 1 City of Fort Worth,TX 02.09.2017 Genuine Parts Cornpany/NAPA Integrated Business Sotutions COST Expense Cale nI° Mnntl'i ' A wflualixrd C Customer Part Purchases 319700 3 36'd00 Cost of Goods Less Tires 275.500 3 306000 LU t1 Cost of Goods Tires 44300 53:1-000 Gross M rku Mar in Admin Expense 1'600 A9 200 2 400 28700 Payroll Expenses Lu Delivery Driver Salaries 7 600 . 90 200 Z Mana er/Counter Salaries -.54-000 418,600 w 0 0 a Employee Pension/401 K 1 500 17300 p Group Insurance/Benefits Other 300 2 500 200 140.0 >100 300 a Workers Corp Insurance 100 190 800 . 8 700 Payroll Taxes 32 0 37 700 500 :5 000 Total BS Pa ro I E x1penses DefiveryTruck Insurance FM Delivery Maintenance/Gas 1,300 14 500 500 5,80 Truck Payment 300 3.000 too 100 in Facility Ex enses 200 1.300 U) Fixed Asset Depreciation 100 300 w 200 2,100 CL 100 . ::100 X 300 2 800 w Store Expenses 0 0 1 100 12,40 0 0 z x.700 1200 g «'1o0 900 U Computers and Support Equipment 1Q0 1'00 1o0 900 1=400 15 700 Taxes-Not Income 2 6Q0 3:1200 Freight&Postage 4 1:00 49-10.0 .-3,200 39 200 Insurance 500 5 100 Total IBS Mise Ex ease IO G00 126 00 co TOTAL EXPENSES 68,500 821,500 Gross Margin Less Expenses 68,400 -821,500 aMiscellaneous Adjustments 0 0 IBS Sales contracted at 8% 22,100 264,480 IBS Sales contracted at 5% 2., 26;550 p IBS Management Fee 92,800 1,112,530 ~ NAPA's Proposed Return 243Q0 291;030 NAI'A'S NE Y comp ire(['=I !)% .7 473 -54,21 dI Integrated Business Solutions POWERED 4 Response •RFP No.17-0144 1 City of • Worth, 02.09,2017 1 Genuine Pails C• •BUSitleSS Solutions Exhibit C Service Center Operations City Property Management Department Parts/Warehouse Service Centers with Estimates FACILITY NAME ADDRESS Southside Service Center 4100 Columbus Trail,Fort Worth,TX 76133 1'`-Shift: 7:00 AM To 4:00 PM *Estimated Quantity of Vehicles&Equipment Assigned This Location is: 237 James Avenue Service Center 5021 James Avenue,Fort Worth,TX 76115 I"-Shift:7:00:AM To 4:00 PM Monday-Friday na shift 12:30 PM to 11:30 PM Monday-Thursday * Estimated Quantity of Vehicles&Equipment Assigned This Location is:2,810 Water Service Center 2201 West Daggett St.,Fort Worth,TX 76104 I"-Shift:7:00 AM To 4:00 PM Monday-Friday 2nd Shift: 12:30PM To 11:30 PM Monday-Thursday Village Creek(Parts Room supported by Water Ctr.) 500 Wilma Lane, Arlington, TX 6012 Body Shop (Parts Room supported by Southside Service 2500 Brennan St.,Fort Worth,TX Center.) 76106 * Estimated Quantity of Vehicles&Equipment Assigned This Location is: 544 Northside Service Center Hilldale Rd.,Fort Worth,TX Service Center 1'`-Shift: 7:00 AM To 4:00 PM Monday-Friday *Estimated Quantity of Vehicles&Equipment Assigned This Location is:200 1 STAFFING & COST • I • . •� •�• . •. 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O O O O O O O O O Co O O O O O O O O O O O O O O N CO 6d O N N M N ~ 00 O 00 00 N N CO ct O LO O O T r T N M M M T t` t` t` O T r N N N N O O E cm m CD J D n O CO Y Lq v X ti ti U 0_ ~ T V T T - w d 0 Y O` +U > I— N `1 Z Z N p � U) L � U — �� L w co ti C: o CD LO -j � � o � C m OtiNX a y NDN � w (n(D 04 Q 0M 0j-, O � H 5 m � '� nEN � � N � �nLL wU � Up> in � OCD m ami E J N r 0 O J U d L.L IL co X N > N 1— C m w H d Q H- r O U U _C) N 04 LO CD CD 0 N N N N CO O O ti O ~ N N O CO M T T (o 00 O O O Ln O N LL co r T O M Cfl T N N N T ti M T J Q' O O fM+ ti ti p h I- p H IP H F- h- M&C Review Page 1 of 3 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORT�TIJ COUNCIL ACTION: Approved on 3/21/2017 DATE: 3/21/2017 REFERENCE NO.: P-12012 LOG NAME: 13P17-0144 AUTO PARTS LSJ PMD CODE: P TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: Authorize Execution of a Contract with Genuine Parts Company d/b/a NAPA Auto Parts in an Amount Up to $20,380,805.00 for the Initial Three and One-Half Year Term for Fleet Parts Management and Supply Services for the Property Management Department(ALL COUNCIL DISTRICTS) Kr_UUIN111ntNL)A VIM It is recommended that the City Council authorize the execution of a contract with Genuine Parts Company d/b/a NAPA Auto Parts in an amount up to $20,380,805.00 for the initial three and one-half year term for fleet parts management and supply services for the Property Management Department. DISCUSSION: The Property Management Department's Fleet Division (Fleet) will use this Agreement for equipment and vehicle parts management and to acquire equipment maintenance parts. Fleet is responsible for acquisition, preventive maintenance, repairs and fueling for the City's mixed fleet of vehicles, off-road equipment and related equipment. ADVERTISEMENT-A Request for Proposals (RFP) was advertised in the Fort Worth Star-Telegram on December 28, 2016, January 4, 2017, January 11, 2017 and January 18, 2017. The RFP included requirements for prospective contractors to provide parts, supplies, staffing and management for Fleet's Parts Distribution and Maintenance Centers. The Purchasing Division solicited 52 vendors from the City's purchasing database system for this service; two proposals were received. Proposals were received and reviewed by an evaluation committee comprised of five City staff members from the Police, Fire and Property Management Departments. Evaluation factors included demonstrated ability to perform the scope of work, plan for managing customer relationships, prior experience managing the required services at similar size governmental or fleet operations, management and staff structure, budget and internal controls, and cost of management services and parts. Genuine Parts Company d/b/a NAPA Auto Parts (NAPA) was rated to have submitted the best proposal based upon the rating criteria. Staff recommends that NAPA be awarded the contract to supply parts, staffing and management for the City's Parts Distribution and Maintenance Centers. NAPA will provide all parts, staffing and systems for parts management at each of Fleet's Parts Distribution and Maintenance Centers. PRICE ANALYSIS -The pricing reflects a 10.62 percent reduction from the current cost awarded December 13, 2011 (M&C C-25375). NAPA will provide 17 staff members and an additional 3 staff members when the new Water and North Service Centers open in late 2017. The management fee will increase by 19 percent when the additional staff members are provided. The initial term of the contract shall be three and one-half years in order to complete this year and align the contract with the City's fiscal year. Anticipated annual contract expenditures are as follows: http://apps.cfwnet.org/council_packet/mc review.asp?ID=24494&councildate=3/21/2017 4/28/2017 M&C Review Page 2 of 3 Initial Term: Remainder of FY2017 $ 2,676,202.00 FY2018 $ 5,727,977.00 FY2019 $ 5,899,816.00 FY2020 $ 6,076,810.00 Option Years: FY2021 $ 6,259,115.00 FY2022 $ 6,446,888.00 ADMINISTRATIVE INCREASE -An administrative increase or change order for this contract may be made by the City Manager or his designee for an amount up to $50,000.00 and does not require specific City Council approval so long as sufficient funds have been appropriated. M/WBE -A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. AGREEMENT TERMS- Upon City Council's approval, the initial Agreement term will begin April 1, 2017 and end September 30, 2020. RENEWAL OPTIONS -This Agreement may be renewed for up to one, two-year term at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligation during the renewal term. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budgets, as appropriated, of the Equipment Services Fund. Prior to an expenditure being made, the Property Management Department has the responsibility to validate the availability of funds. BQN\17-0144\LSJ TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Jay Chapa (5804) http://apps.cfwnet.org/council_packet/mc review.asp?ID=24494&councildate=3/21/2017 4/28/2017 M&C Review Page 3 of 3 Originating Department Head: Aaron Bovos (8517) Additional Information Contact: Jack Dale (8357) LaKita Slack-Johnson (8314) ATTACHMENTS CFW 2017 HB1295 Notarized.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=24494&councildate=3/21/2017 4/28/2017 CERTIFICATE OF INTERESTED PARTIES FORM 1295 l of l Complete Nos.i-4 and 6 if there are Interested parties. OFFICE USE ONLY Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2017-178665 Genuine Parts Company D.B.A.NAPA Auto Parts Coppell,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party tot the contract for which the form s03/15/2017 being filed. City of Fort Worth Texas ]Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a description of the services,goods,or other property to be provided under the contract. 17-0144 Fleet Parts Management and Supply Services 4 Nature of interest Name of Interested Party City,State,Country(place of business) (check applicable) Controlling I Intermediary Geren,Lucas Atlanta,GA United States X 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear,or affirm,undernal pe ty of perjury,that the above disclosure is true and correct. ��o1Y p��'G NANCY E.RODERICK Notary Public,State of Texas ,E Comm.Expires 02-05-2021 Notary ID 129294306 Sign re of a rued agent of cantr ting business entity AFFIX NOTARY STAMP/SEAL ABOVE Swom to and subscribed before me,by the said Stu KambuFy this the ? day of M arca 2Q 17 to certify which,witness my hand and seal of office. Nancy E. Roderick Office Manager Si ature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277