Authorize Purchase of Fifty-Five 2018 Chevrolet Tahoes from Johnson-Grayson Automotive, Inc. d/b/a Holiday Chevrolet in an Amount Up to $1,786,503.20, 54 Tahoes at a Cost of $32,503.00 and One Tahoe for $31,341.20, Using Tarrant County Cooperative Contract 2016-006 for the Police Department Through the Property Management Department (ALL COUNCIL DISTRICTS)  

It is recommended that the City Council authorize the purchase of Fifty-Five 2018 Chevrolet Tahoes from Johnson-Grayson Automotive, Inc. d/b/a Holiday Chevrolet in an amount up to $1,786,503.20 using Tarrant County Cooperative Contract  2016-006 for the Police Department through the Property Management Department.

The Police Department has requested the Fleet Division of Property Management to assist in the purchase of fifty-five Chevy Tahoes to replace older vehicles which are no longer economically feasible to maintain.  The vehicles will be used as follows: fifty-four will be marked and used in support of traffic control functions and one will remain unmarked to be used for rapid response by executive staff in emergency situations and to carry necessary equipment.  The older vehicles will be sold at auction upon delivery and acceptance of the new vehicles.

TOTAL COST OF OWNERSHIP -  The cost to purchase the vehicles will be approximately $1,786,503.00.  The total cost of ownership, including cost of vehicles is approximately  $3,545,244.00 (see attached tabulation).  The life expectancy for the vehicles is 7.5 years.  These vehicles meet the required specifications and are expected to operate satisfactorily during their average service life.  Warranty information, manufacturer's statement of origin and an original sales invoice will accompany the new vehicles upon delivery to the City.

COOPERATIVE PURCHASE - State law provides that a local government purchasing items under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the items.  Tarrant County Cooperative Contract 2016-006 has been competitively bid to increase the purchasing power of government entities and to simplify the bidding process.

PRICE ANALYSIS  - On December 12, 2017, Staff submitted Informal Report 10077 regarding the purchase of vehicles from a cooperative agreement.  In the Informal Report, staff stated that going forward it would include a cost comparison between cooperative vehicle vendors. Property Management requested quotes from 4 cooperative vendors for the 55 vehicles. Holiday Chevrolet, under the Tarrant County Contract Pricing 2016-0066 provided the lowest price for the requested vehicles. Below is a summary of the quotes received. A more detailed chart is attached.

• Holiday Chevrolet- Tarrant County Pricing -  $1,786,503.20
• Reliable Chevrolet -Tarrant County Pricing - $1,834,641.00
• Caldwell Chevrolet-HGAC -                             $1,839,608.05
• Coldwell Chevrolet BuyBoard-                         $1,894,314.85
• Five Star - Tarrant County Pricing -                  $1,982,805.00
  

ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $50,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.  

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.