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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: Vendor Managed Inventory Supply Services (The Aftermarket Parts Company, LLC)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute contract 25-03927 with The Aftermarket Parts Company, LLC (New Flyer) with a Not-To-Exceed amount of $5,300,000 over a period of up to five (5) years, which consists of a three (3) year base agreement and two (2) one-year options.
BACKGROUND:
In 2019 UTA, San Diego MTS, and Portland TriMet partnered together to combine buying power and leverage better pricing with suppliers for a Vendor Managed Inventory (VMI) supply contract. Two procurements were conducted: one for bus parts, and one for light rail parts. The current contract for bus parts has expired and this contract is to establish a new VMI contract. The same partnership process conducted in 2019 was conducted in 2024 and UTA partnered with San Diego MTS for this procurement.
DISCUSSION:
Supply Chain staff evaluated parts usage over the past 2 years and solicited bids for over 200 high usage parts. Bids were evaluated based on a per-part evaluation of price and lead-time. Of these parts, 144 are being awarded to The Aftermarket Parts Company, LLC in this VMI contract.
Having this part’s contract allows UTA to set up the inventory system to automatically send an order to the supplier when a requisition is generated. Parts are stocked by New Flyer and are shipped within 24 hours of receiving an order. This reduces UTA’s inventory, buyer workload, invoice processing, eliminates order creation errors, and increases parts availability in maintenance shops.
Staff will continue to conduct quarterly business reviews with New Flyer to ensure they are meeting on-time delivery performance and order fulfillment rates.
CONTRACT SUMMARY:
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Contractor Name: |
The Aftermarket Parts Company, LLC (New Flyer) |
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Contract Number: |
25-03927 |
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Base Contract Effective Dates: |
Effective after last signature - May 14, 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: |
$5,300,000 |
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Procurement Method: |
RFP |
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Budget Authority: |
Approved 2025 Operating Budget |
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ALTERNATIVES:
Bid parts individually and place orders as needed. Orders are shipped when they become available based on on-hand stock and lead-times from the manufacturer.
FISCAL IMPACT:
Parts are purchased and added to UTA inventory; they are then expensed to the maintenance division’s “Parts Expense” budget when they are issued to a Work Order.
• 2025 Contract Not-To-Exceed Total: $618,333 (8 months)
• 2026 Contract Not-To-Exceed Total: $1,060,000
• 2027 Contract Not-To-Exceed Total: $1,060,000
• 2028 Contract Not-To-Exceed Total: $1,060,000
• 2029 Contract Not-To-Exceed Total: $1,060,000
• 2030 Contract Not-To-Exceed Total: $441,667 (4 months)
Total Contract Not-To-Exceed Amount: $5,300,000
ATTACHMENTS:
• Contract: Vendor Managed Inventory Supply Services (The Aftermarket Parts Company, LLC)