CITY OF RL4LTO
SOLE SOURCE/STANDARDIZATION VENDOR REQUEST
VENDOR: Phil Lonq Dealership, Inc.
ADDRESS: 1212 Motor City Drive, Colorado Sprinqs, CO 80905 REQUSITION NUMBER:
U Standardization: The City requires the item(s) to standardize parts, design quality, etc. (explain in more detail below).
Sole Source:
U Proprietary.’
No other items are known to exist which perform the same function.
The item is held under exclusive title, trademark or copyright by a private person or company; or a proprietary distributorship.
I. Describe the product/service:
Purchase of fifteen (15) 2023 Ford Police Explorer Interceptors
2. Describe how the product or service is unique and/or one of a kind:
With the current cancellation of the department’s fleet through the Enterprise Lease agreement the department began researching dealerships to supplement for the purchase of new vehicles. With the procurement issues, staff located only one dealership (Phil Long Dealership, Inc.) who could deliver the fleet in an acceptable timeline. Therefore, staff determined that the best use of remaining replacement funds be used to purchase fifteen (15)2023 Ford Police Explorer Interceptors with Phil Long Dealership. Inc.
3. Is the product or service available from other sources? This product is available through other sources, however, no other vendors had the product in stock and could not meet the timeline of the department.
4. Can your requirements be modified so that competitive products or services may be used? Please explain:
With the current procurement issues, no other vendor could procure all the vehicles funded for replacement this year.
5. Submit a detailed memo explaining the steps taken to determine this is a sole source vendor and justify the need.
See Attached
Requestor Signature: Date: 05/01/2023
Approvals:
Department Head Chief Finance Officer
City Manager Purchasing Manager
1UALTO POLICE DEPARTMENT
MEMORANDUM
TO: Arron Brown, Acting City Manager
FROM: Jonathan Palmer, Sergeant Administration
SUBJECT: Phil Long Dealership, Inc. Sole Source
DATE: May 2, 2023
In 2021, City Council consented to enter into a 5-year Master Equity Lease Agreement between the City of Rialto and Enterprise Fleet Management, Incorporated. Continued use of lease agreements with Enterprise Fleet Management, Inc can be executed by utilizing a cooperative agreement through Sourcewell (formerly NJPA) for Fleet Management Services. Department staff concluded that supplementing the vehicle replacement purchases with a leasing program would be the most efficient way to move the fleet into an industry-standard replacement model timeline. The staff developed a vehicle replacement plan to reduce annual fleet costs by reducing fleet size, establishing a shared motor pool, fleet standardization, evaluating vehicle utilization, and removing low-use equipment. However, to date, Enterprise has not been able to procure the necessary vehicles to supplement the current fleet for the Police Department. The first Enterprise order of 2022 Ford Interceptors was cancelled, and Enterprise 2023 Ford Interceptors has been pushed back several times, with an estimated receipt date of mid to late 2024. This prompted department staff to look for additional ways to procure the necessary vehicles to ensure a safe and reliable fleet.
U.S. vehicle and equipment inventory are at their lowest levels since the global financial crisis of the late 2000s, and the shortage of microchips and the constantly changing price of materials means that replacement fleet inventory has been difficult to procure. Currently, vehicle manufacturers will release a limited number of vehicle orders to government fleet agents, and the limited supply of vehicles is often exhausted in a few hours. Therefore, the department staff has reached out to several local dealerships in hopes of procuring the needed vehicles for the fleet.
With the current procurement issues, and order cancellation by Enterprise, staff could not procure any of the vehicles funded for replacement this year. The department staff began to reach out to different vendors to meet the needs of the department. Staff, through due diligence, has located only one vendor out of Colorado, who currently has the vehicles available and can deliver the much needed vehicles to the patrol fleet. Therefore, staff determined that the best use of vehicle replacement funds be used to purchase fifteen (15) 2023 Ford Police Explorer Interceptors with Phil Long Dealership, Inc. This will allow the City to continue with the previously programmed funds over the next fiscal year to continue to procure fleet replacements.
Additionally, the purchase will allow the department to iceep the fifteen (15) vehicles in the fleet past the 5-year lease timeline through Enterprise. The purchase of these vehicles will positively impact the safety of the community, response to calls for service and the patrol fUnction as a whole.
The existing vehicles this purchase will replace have reached the end of their usefUl operating life. Therefore, these vehicles will be auctioned via an approved City program, and the revenues from this auction will fUnd additional fleet replacements. Another benefit to fleet replacement is reduced maintenance and fUel costs. Vehicle average fUel mileage has increased substantially over the last twenty (20) years, and by simply replacing older vehicles with newer ones, the fleet will decrease fuel costs. This purchase will be beneficial to the department and ensure the City maintains a safe and reliable service fleet.