AGENDA REPORT
Meeting Date: November 1, 2022
Item Number:
To: Honorable Mayor & City Council
From: Craig Crowder, Fleet & Facilities Manager
Michael Hensley, Deputy Director of Public Works-Operations Subject: A CHANGE PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP IN THE AMOUNT OF $118,471.95 FOR A TOTAL NOT- TO-EXCEED AMOUNT OF $829,372.84 FOR THE PURCHASE OF TEN (10) POLICE PATROL VEHICLES
Attachments: 1. Ford Customer Letter
2. National Auto Fleet Group Customer Letter
3. National Auto Fleet Group Ford SUV Interceptor B&W Patrol Price Quote
4. National Auto Fleet Group Ford SUV Interceptor White Patrol Price Quote
RECOMMENDATION
Staff recommends City Council move to waive the bidding requirements, as the City is utilizing the Sourcewell bid process, and move to approve a change purchase order in the amount of $118,471.95 for a total not to exceed amount of $829,372.84 to National Auto Fleet Group for the purchase of specified vehicles.
INTRODUCTION
The Public Works Fleet Services program supports City efforts to provide exceptional service to the community by procuring and maintaining over four-hundred and fifty (450) fleet vehicles and equipment. Each fleet vehicle has an estimated life expectancy based on the type of vehicle, its operational use and the effectiveness of ongoing preventative maintenance and repair. Fleet Services staff perform routine preventative maintenance to help ensure that vehicles meet or exceed their estimated life expectancy. Each vehicle is thoroughly inspected when it meets the anticipated replacement period to assess whether replacement is warranted or if the vehicle can continue to be used past the recommended lifecycle.
E-5
Meeting Date: November 1, 2022
DISCUSSION
City Council approved a vehicle replacement item on April 12, 2022, that supported the purchase of seventeen (17) total vehicles and included the purchase of eight (8) Ford SUV Interceptor black & white and two (2) Ford SUV Interceptor all white patrol vehicle replacements. City Purchase Order #22001278 was generated on May 17, 2022, and those vehicles were ordered from our Sourcewell Dealer, National Auto Fleet Group.
These replacement vehicle selections were proactive in nature and designed to provide vehicles in the order bank ahead of projected replacement dates in the upcoming fiscal year. Domestic and import fleet vehicle order banks have been open less often, for shorter duration and have contained very few vehicle options due to supply chain issues and increased demand on the non-fleet side of the business (dealerships and rentals). The current new fleet vehicle market is very tight due to supply chain issues, especially with semiconductors used in vehicles. Vehicle shortages combined with market inflation have driven the cost of new and used car prices up.
Our Sourcewell Dealer, National Auto Fleet Group, contacted Fleet Services on October 5, 2022, indicating that our order placed on May 17, 2022, for the ten (10) patrol vehicles mentioned above had been cancelled by Ford. National Auto Fleet Group sent City staff a letter they received from Ford indicating that Ford was cancelling the order due to supply chain issues and unforeseen plant downtime (Attachment 1). National Auto Fleet Group also sent their own letter indicating the cancellation, the availability to reorder the cancelled vehicles in the new Ford Model Year 2023 (MY23) and the notice of a price increase for MY23 from Ford (Attachment 2). Staff received the updated MY23 Sourcewell quotes from National Auto Fleet Group and has provided those attachments (Attachments 3, 4) to this report. The other seven (7) vehicles included in the original purchase order have not been cancelled by the vendor.
FISCAL IMPACT
The original cost for the ten (10) vehicles specified above and reflected in City purchase order #22001278 was $435,970.10. The price escalation indicated by Ford and reflected in the MY23 National Auto Fleet Group Sourcewell quotes adds an additional cost of $118,471.95 to bring the ten (10) vehicle total cost to $554,442.05. Therefore, staff requests the approval of a change purchase order in the amount of $118,471.95 for a total purchase order amount not to exceed $829,372.84 to National Auto Fleet Group for the purchase of specified vehicles.
Funding for this purchase is supported by the Fiscal Year 2022/23 City Council-approved Vehicle Replacement budget.
Program # / Description of Fund Source Amount
Change Purchase Order / 49008501-850000-08502 / Vehicle Replacement $118,471.95 New Purchase Order Total / 49008501-850000-08502 / Vehicle Replacement $829,372.84 Shana Epstein, Director of Public Works
Approved By
Attachment 1
Nathan Oscarson 16800 Executive Plaza Dr
Commercial and Government Sales Dearborn, MI 48126
Dear Valued Government Partner:
First, I’d like to thank you for your continued support over the years as we have worked together to provide for the vehicle needs of our communities. We have always tried to place our government partners first in all our decision making.
As you know, this past year has presented an extremely challenging environment for the global automotive industry due to the continuing global microchip shortage, major disruptions in the supply chain due to the war in Eastern Europe and other factors and the lingering impact of Covid.
This unprecedented combination of events has contributed to logistical challenges and unpredictable manufacturing plant downtime. Given the high order submissions and unforeseen plant downtime, we will not be able to build all the unscheduled 2022 MY vehicles currently in the Government order bank. We will be prioritizing all 2022 MY vehicles that have been Purchase Order verified and re-submitted as a 2023 MY. Please work with your dealership contact to verify which orders will need to be carried over from one year to the next.
Compounding matters, we are experiencing record inflation, greater than at any time in the last forty years. Inflation, as well as significant impacts on raw material costs are affecting new vehicle pricing. Given these circumstances, we will not guarantee price protection on unscheduled 2022 MY orders that are re-entered into the 2023 MY order bank. We appreciate your understanding as we work through these challenging times, and you can be assured that we are closely monitoring such global events and will communicate any implications beyond the 2023 MY at the appropriate time.
Please contact your dealership representative for complete details. Thank you again for your loyalty and support of the Ford brand.
Sincerely,
Nathan Oscarson
National Government Sales Manager
Attachment 2
October 5, 2022
Mr. Harry Kalindjian
City of Beverley Hills
345 N Foothill Rd
Beverley Hills, Ca 90210
Delivery Via Email
Dear Mr. Kalindjian,
Ford has notified me that Model Year (MY) 2022 of the Ford Police Interceptor has scheduled out with production.
Ten orders have been resubmitted for production as MY2023, but a price increase has occurred. Ford was unable to hold pricing due to supply chain issues and dramatic increases in material cost over the last several months. MY2023 production will begin sometime the first week of November 2023. Any MY2022 orders that were resubmitted as MY2023 orders will receive priority over new orders. If Beverley Hills wishes to move forward with these orders, I will need an additional PO to cover the added cost as soon as possible to hold your priority production slots. I have attached a copy of the new quote for your order.
Due to the high demand for the Ford Police Interceptor, the order bank has already closed for MY2023. The next available order period for MY2024 has not been determined.
Kevin Buzzard
National Law Enforcement Sales Manager
National Auto Fleet Group
626-457-5590 O / 714-26-41867 C / [email protected] National Auto Fleet Group
A Division of Chevrolet of Watsonville
490 Auto Center Drive, Watsonville, CA 95076
[855) 289-6572 • [855) BUY-NJPA • [831) 480-8497 Fax
FI e et@N ationa I Au to FleetG rou p. com
@TOYOTA
Attachment 3
City of Beverly Hills
Department of Public Works Services, Fleet Services
PRICE QUOTE REQUEST
Telephone: (310) 285-2484
FAX: (310) 278-1838
Item Group Componantlfunctlonal Description Price Quota
1. Contract NJPA Master vehicle Contract# 091521-NAF
2. Vehicle One (1) 2022 or newer Ford Pofice Interceptor Utility AWD base; to include aU items specified In NJPA Mester Vehicle Contract and ell manufacturer's standard equipment, unless, speclflcally added or deleted herein (PATROL PACKAGE)
MAJOR STANDARD FEATURES • . .
3. Powertrains 99V 3.3L VS DIRECT INJECTION FFV(AWD)(GASOLINE)
4. Drlvetraln (K8A) AWD - eD-wheel drive
5. Seats/lntenor Tnm: Front bucket seats, 6-way power driver with manual-lumbar support, rear 60/40 split heavy-duty vinyl bench, Charcoal Black heavy-duty cloth w/ Medium Dark flint inserts.
6. Audio Audio -AM/FM stereo/single-CD player with MP3 cepebifity, clock and 6 speakers
7 Wheels/Tires: P245/55R18 all-season BSW, heavy-duty steel 5-spoke wheels; full-size spare tire
8. Brakes· 4-wheel heavy-duty power disc with hydraulic brake assist, 4-wheel Anti-Lock Brake System (ABS) (police-calibrated), electronic traction I stability control $49,489.00
INCL INCL INCL INCL INCL INCL
9. 10. 11. 12. 13. 14.
17. 18.
19. 20 21. 22 23. 24. 25 26.
27. 27. 29 30
Electrical:
Safety:
Convenience·
Instrumentation:
Comfort features·
Warranty
53M
218
515
76R
153
17T
66A 66B
430
17A 19V
60R
OMV Plates
Safety:
Keys
220A altemetor; 78-amp-hr I 750CCA Maintenance Free Battery AdvanceTrac with RSC® (Roll Stablllty Control111); Airbags - Front-seat side, plus Safety canopy® System (sid&<:Urtain airbags) and rollover sensor. Battery saver Power windows & door locks; till & electric power assisted steering; adjustable pedals; (2) 12V PowerPoints, power trunk release, dual power side view mirrors My Ford with 4.2" color LCD display In police Instrument cluster and center stack "smart display• Manual AIC; Glass - Solar-tinted 1st row; privacy glass 2nd and 3rd rows Powertratn extended warranty
All four doors and roof to be painted white SYNC Basic Communication System Rear View Camera (Includes Electrochrom,c Rear View Mirror) Dual Spot Lamp Bulbs - LED (Unity) Reverse Sensing License Plate Bracket - Front Dome light - Red/white 1n cargo area Front Headlamp Lighting Solution Tall lamp Lighting solution Dark Car feature Aux. Air Conditioning
Rear camera On Demand Noise Suppression Bonds Exempt Registration Provided by Dealer Ballistic Door Panels 90E 1284X
B&W White Doors & Roof
INCL INCL
INCL
INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL
INCL INCL INCL INCL INCL
$1,250.00
City of Beverly Hills Options
16. Replacing shop #s
62/63/64/65/66/67K9/68
K9
TERMS OF PAYMENT:
Date·
Signature·
Print Name·
Vendor:
Address. City/State/Zip:
NET30 Kevin Buzzard
National Auto
490 Auto Center Dr Watsonville, Ca 95076
l of 1
Subtotal : S_50�7_,3_.9_0_ 0
Tax (9.5%): $4�_, 2s,...o_2_. 1
Tire Fee. -------,--,,-$8.,...
_57 _
Delivery fee: �$__1 50_._oo _
Purchase Price For One (1) Unlt S_5_,5'-7_71_
_96_
Total Purchase price For (8) $44_5'--- _._7, _4_3_64. _ Attachment 4
City of Beverfy Hills
Department of Public Works Services, Fleet Services
PRICE QUOTE REQUEST
Telephone: (310) 285-2484
FAX: (310) 278-1838
Item Group Component/Functional Description Price Quote
1. Contract NJPA Master vehicle Contract # 091521-NAF
2. Vehicle One (1) 2022 or newer Ford Police Interceptor Utility AWD base; to include all items specified in NJPA Master Vehicle Contract and all manufacturer's standard equipment, unless, speclflcally added or deleted herein (PATROL PACKAGE)
MAJOR STANDARD FEATURES
3. Powertrains 99V 3.3L V6 DIRECT INJECTION FFV(AWD)(GASOLINE)
4. Drivetrain (KSA) AWD - all-wheel drive
5. Seats/Interior Trim· Front bucket seats. 6-way power driver with manual-lumbar support, rear 60/40 split heavy-duty vinyl bench, Charcoal Black heavy-duty cloth w/ Medium Dark flint inserts,
6. Audio Audio - AM/FM stereo/single-CD player with MP3 capability, clock and 6 speakers
7. Wheels/Tires: P245/55R18 all-season BSW; heavy-duty steel 5-spoke wheels; full-size spare tire
8. Brakes· 4-wheel heavy-duty power disc with hydraulic brake assist, 4-wheel Anti-Lock Brake System (ABS) (police-calibrated), electronic traction I stability control $49,489.00
INCL INCL INCL INCL INCL INCL
9. 10.
Electrical:
Safety:
220A alternator; 78-amp-hr / 750CCA Maintenance Free Battery Advance Trac with RSC® (Roll Stability Controlm); Airbags - From-seat side, plus Safety Canopy® System (sid�urtain airbags) and rollover sensor; Battery saver INCL
INCL
11. Convenience: Power windows & door locks; tilt & electric power assisted steenng; adjustable pedals; (2) 12V PowerPolnts, power trunk release, dual power side view mirrors INCL
12. 13. 14.
Instrumentation:
Comfort features.
Warranty
My Ford with 4.2" color LCD display in police instrument cluster and center stack "smart display· Manual A/C; Glass - Solar-tinted 1st row; privacy glass 2nd and 3rd rows Powertrain extended warranty
INCL INCL INCL
490 Auto Center Dr Watsonville, Ca 95076
INCL
INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL INCL
INCL INCL INCL
Subtotal : $49,439,00
Tax (9.5%). ------S4-�._-07 _1_- 4._ 6
Tire Fee: "'"8$ _._
_ 5
Delivery fee: $"'-1_50""'-'-' o...;... o
Purchase Price For One (1) Unit $_54�3_,
_._9 2_ 1
Total Purchase price For (2) $108,698.41
OXFORD WHITE SYNC Basic Communication System Rear View Camera (Includes Electrochromic Rear View Mirror) Dual Spot Lamp Bulbs - LED (Unity) Reverse Sensing License Plate Bracket - Front Dome light - Red/while in cargo area Front Headlamp Lighting Solution Tail lamp Lighting solution
Dark car feature
Aux. Air Conditioning
Rear Camera On Demand Noise Suppression Bonds
1284X
Exempt Registration Provided by Dealer Ballistic Door Panels SOE 101512022
TERMS OF PAYMENT: NET30
Dale:
Signature:
Print Name:
Vendor.
Address:
City/State/Zip:
City of Beverly Hills Options
16. EXTERIOR 17. 53M 18. 218 19. 518
20. 76R 21. 153
22. 17T 23. 66A 24. 668 25. 43D 26. 17A
27. 19V
27. SOR 28. Keys 29. DMV Plates 30. Safety:
Replacing shop #s
026/028R2
1 of 1