HomeMy WebLinkAboutIR 8450 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO- 8450
November 26, 2002
1 r To the Mayor and Members of the City Council
SUBJECT: STATUS OF PARTS OUTSOURCING PROJECT IN
EQUIPMENT SERVICES DEPARTMENT
Equipment Services Department (ESD) is responsible for the acquisition, preventive
maintenance, repairs, and fueling for the City's mixed fleet of vehicles, off-road equipment, and
auxiliary equipment. As part of on-going efforts to ensure the competitiveness of ESD services
by considering alternative delivery systems, a Request for Proposals (RFP) was developed to
outsource parts operations. The RFP was issued on March 20, 2002 and proposals were
received May 2. NAPA Auto Parts was determined to have submitted the best and most
responsive proposal.
On July 30, 2002 (M&C C-19178), the City Council authorized execution of a three-year
agreement with NAPA to provide all parts, staffing, and systems for parts management at each
of ESD's six maintenance facilities. An agreement was subsequently executed on October 18.
Beginning October 19 and progressing at the rate of one facility per week through November 22,
NAPA assumed control and management of the City's inventory of parts. The transition for
each facility began with a joint inventory of parts conducted by NAPA and the City, new
computer and communication systems installation, installation of new shelving, and stocking of
additional inventory. The transition from the City to NAPA went smoothly with very little effect
on maintenance operations. Twenty-one authorized parts positions within ESD have been
eliminated and all incumbents found other jobs. No employees were actually laid off.
It was originally planned that NAPA assume control and management of the City's parts
inventory and issue it back to the City at no charge until it was eliminated. However, because of
parts system limitations and the additional effort required to track and account for two
inventories — NAPA's and the City's — it was determined that it would be best for NAPA to
purchase the City's inventory. The value of the City's inventory based on it purchase price has
been determined to be approximately $700,000. Within the next few weeks, City Council
approval will be requested to accept payment from NAPA for the purchase of the City's parts
inventory.
In summary, this outsourcing project has gone well, but it is anticipated that it will take six to
twelve months of NAPA and ESD working together before the benefits are fully realized.
&'I- aJ
Gary W. Jackson
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS