HomeMy WebLinkAboutIR 9254 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9254
To the Mayor and Members of the City Council June 8, 2010
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SUBJECT: COOPERATIVE PURCHASING AGREEMENTS
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This Informal Report provides a response to the questions regarding the use of cooperative
purchasing agreements for vehicles as well as for other goods and services. The City of Fort
Worth has long supported the use of cooperative purchasing contracts in order to provide goods
and services for City departments and residents in an efficient and effective manner.
On May 17th, the Equipment Services Department studied the bid versus contract process on a
purchase of crew cab pickup trucks. The purchase was originally submitted using the Houston-
Galveston Area Council (HGAC) Cooperative Contract from pricing received on March 10. At that
time, this was the lowest contract pricing available. After requesting bids from local dealers on
May 17th, it was identified that a discount was being offered by Ford that was not in effect on
March 10th. This discount was applicable to contracting entities, also. Upon further review, on
May 17th, the lowest cost still came from a contract rather than a bid. Nevertheless, a different
contract had the lowest cost. Therefore, a revised purchase M&C was created to acquire these
vehicles using a Texas Procurement and Support Services (TPASS) contract for a savings of
$15,112. This savings was not attributed to using a bid versus a contract, but rather due to the
LWI timing of the discount offered by Ford.
The Purchasing Division will encourage local vehicle dealers and other vendors to register with
cooperative purchasing organizations in order to receive future bid notices and enhance their
opportunities to participate in City acquisitions. Registration with these cooperatives may also
increase vendors' opportunities throughout the state and the nation.
Staff appreciates the City Council's leadership and vigilance on this issue and others affecting
City expenditures. Actions resulting from the questions raised save public funds, provide
confirming information regarding the City's use of cooperative purchasing agreements and may
enhance the business community's opportunities in the future.
If you have any questions regarding this information, please contact Jack Dale, Purchasing
Manager, at (817) 392-8357 or Wayne Corum, Equipment Services Director, at (817) 392-5118.
A. Fisseler, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS