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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
R2024-02-01 - Resolution Granting Expenditure and Disbursement Authority for 2024 Vehicle Parts Inventory Purchases
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2024-02-01 authorizing the purchase and related disbursements to vehicle parts inventory vendors in 2024 up to the amounts listed by transit mode in the resolution.
BACKGROUND:
Board Policy 2.2 (III)(D)(3) allows the Board to preapprove purchases to vendors by resolution.
Annually the Board, by resolution, has preapproved inventory purchases from non-contracted vendors related to vehicle maintenance and repair inventory whose annual cumulative purchase amount is expected to exceed $200,000.
DISCUSSION:
The proposed resolution would authorize the agency’s 2024 expenditure and disbursement for the following vehicle parts inventory:
• Bus Vehicles - up to $7,000,000
• Light Rail Vehicle Parts - up to $10,000,000
• Commuter Rail Vehicle Parts - up to $5,000,000
Purchases from vendors who supply these parts will likely exceed cumulative Purchase Orders of $200,000, and therefore require approval by the Board of Trustees.
This resolution only applies to revenue fleet vehicle parts purchases that are procured as the result of an automatic JD Edwards generated requisition due to on-hand quantities falling below the reorder point, or from an out-of-stock requisition created by a UTA Parts clerk. Procurement staff will solicit bids from industry parts suppliers through open and fair competition, and will make purchase awards based on price, quality, and lead-time criteria.
This resolution provides sufficient purchasing authority and transparency and allows the Authority to purchase from these vendors on a timely basis to maintain revenue fleet readiness for our riders.
At the end of every quarter the Director of Supply Chain will provide a list of actual purchase totals for each vendor to the Board of Trustees in a public meeting, and will review and compare actual Purchase Order amounts with the amounts listed in the resolution. Any Transit mode parts Purchase Order amounts that will likely exceed the forecasted amount will be brought back to the Board of Trustees for further review and approval.
ALTERNATIVES:
UTA procurement could hold any purchases to vendors with annual purchase amounts over $200,000 to a subsequent Board meeting for an approval, thus delaying timely purchases from vendors and potential impact to operations service.
FISCAL IMPACT:
All authorized disbursements are accounted for in UTA’s adopted 2024 Operating and Capital Budgets.
ATTACHMENTS:
R2024-02-01