TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 13, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase orders and enter into an agreement with Enterprise Fleet Management, Inc., Enterprise FM Trust and WEX Bank, to provide fleet vehicle services under Sourcewell Contract 030122-EFM, in an amount not to exceed $5,760,800.00, Accounts 101-15000-612080/612330/612860, Requisitions 1602131, 1602338.
Body
Dear Sir:
Authorization is requested to issue purchase orders and enter into an agreement with Enterprise Fleet Management, Inc. (EFM), Enterprise FM Trust and WEX Bank, to provide new fleet vehicles via municipal open-end leases, maintenance services, accident management and repair services, and fuel card management for fleet vehicles, under Sourcewell Contract 030122-EFM. The District has the ability to participate in Sourcewell contracts under the Government Joint Purchasing Act, 30 ILCS 525/0.01 et. seq. The purchase orders will begin on approximately September 1, 2023 and expire on April 18, 2026.
Sourcewell currently has a competitively bid contract with EFM to procure fleet management services. On May 19, 2011, the Board of Commissioners granted authority to participate in the Sourcewell purchasing cooperative (formerly known as the National Joint Powers Alliance). The invitation to bid was issued to establish a contract to enable all state agencies and authorized local governmental units to acquire (by lease or financing) a wide range of on-road vehicle types spanning all weight classes and vehicle classifications, new vehicle service and preparation for the above vehicles, and the provision of preventative maintenance plans, maintenance, and repairs in accordance with OEM recommendations. The term of the contract awarded to EFM began on May 4, 2022 and expires on April 18, 2026.
The requested purchase order to EFM in the amount of $5,627,300.00 will allow the District to procure new fleet vehicles via a municipal open-end lease, while proving accident management, preventive maintenance, repair services, and fuel card management for both the District’s existing fleet vehicles and newly delivered fleet vehicles. Using EFM’s extensive manufacturer and dealer networks, and expertise in the industry, the lifecycle replacement schedule will be updated to maximize resale value and minimize maintenance costs and is projected to achieve a net savings of $3 million over the existing lifecycle replacement schedule through 2026. This expertise will assist the District in meeting its Strategic Plan goal of migrating to an electric fleet in order to help reduce the District’s greenhouse gas emissions. A municipal open-end lease will allow the District to pay for newly acquired vehicles via monthly payments over a set term, and result in ownership of the vehicles at the end of the term. The recommended replacement schedule will replace 66 of the District’s existing fleet vehicles in the first twelve months of the agreement and continue to replace additional vehicles throughout the contract term. Orders for the first 66 vehicles will be placed after agreements are signed, pending manufacturer availability. These vehicles are not expected to be delivered until 2024 based on current automotive manufacturing timelines.
A purchase order in the amount of $133,500.00 to WEX Bank will allow the District to purchase fuel through WEX Inc., formerly know as Wright Express, under the terms of the Sourcewell Contract 030122-EFM. The District currently utilizes WEX fuel cards for fleet vehicles that are unable to fuel at District-owned fueling sites, therefore, the fueling process will be seamless for District employees.
Enterprise Fleet Management, Inc. and WEX Inc. are registered and in good standing with the State of Illinois.
In view of the foregoing it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with Enterprise Fleet Management, Inc. Enterprise FM Trust in an amount not to exceed $5,627,300.00, and to WEX Bank in an amount not to exceed $133,500.00.
The estimated expenditures for 2023, 2024, 2025, and 2026 are $295,800.00; $1,475,800.00; $1,880,900.00; and $2,108,300.00 respectively. Funds for 2023 will be made available in accounts 101-15000-612080/612330/612860 contingent upon approval of a funds transfer also presented at this July 13, 2023 Board meeting. Funds for 2024, 2025, and 2026 are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Shellie A. Riedle, Administrative Services Officer, JRM:LSA
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 13, 2023