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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
Contract: Repetitive Inventory Parts (Factory Motor Parts)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute contract 25-04020 and associated disbursements with Factory Motor Parts, with an estimated value of $440,000 over five (5) years.
BACKGROUND:
The Supply Chain department solicited competitive bids from multiple suppliers for our high-usage, repetitive purchased parts. Each quote was evaluated and the lowest-bid vendor selected who meets the current quality specifications or approved equal.
This vendor is to supply UTA through an Automatic Purchase Order process. As UTA maintenance consumes parts and inventory levels drop to the item’s reorder point a Purchase Order is automatically generated and sent to the vendor. This process saves time for both the vendor and UTA by eliminating repetitively quoting the same part. This long-term agreement also helps to stabilize inventory levels, enhance parts availability, reduce lead times, and ensure consistent quality across the parts procured.
DISCUSSION:
The Supply Chain department desires to enter into a requirements contract with Factory Motor Parts. UTA does not guarantee the purchase of any items and is not financially obligated to the vendor until a Purchase Order has been issued and received.
The term of the contract will be for two (2) years, plus three (3) 1-year options for extension. Pricing for each part is fixed for the first two years, with subsequent option years’ pricing being pre-established in Exhibit A.
CONTRACT SUMMARY:
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Contractor Name: |
Factory Motor Parts |
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Contract Number: |
25-04020 |
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Base Contract Effective Dates: |
January 1,2026 - December 31, 2030 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
Estimated $440,000 |
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Procurement Method: |
IFB |
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Budget Authority: |
Approved 2026 Operating Budget |
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ALTERNATIVES:
UTA will have to competitively bid the same item each time the item reaches its’ reorder point, substantially increasing the workload on buyers.
FISCAL IMPACT:
Each Maintenance division parts budget will be charged when parts are issued to a work order.
• 2026 Contract Value: $83,200
• 2027 Contract Value: $83,200
• 2028 Contract Value: $87,000
• 2029 Contract Value: $91,200
• 2030 Contract Value: $95,400
Estimated Total Contract Value: $440,000
ATTACHMENTS:
• Contract: Repetitive Inventory Parts (Factory Motor Parts)