Broken Arrow Municipal Authority
Meeting of: 9-03-2024
Title:
title
Approval of and authorization to execute an integrated supply agreement Renewal No. 1 by and between Genuine Parts Company d/b/a NAPA Auto Parts and the City of Broken Arrow pursuant to the Sourcewell Cooperative Purchasing contract (formerly NJPA) number 110520-GPC
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Background:
The City of Broken Arrow partnered with Genuine Parts Company, doing business as NAPA Auto Parts ("NAPA") in October of 2023, to provide integrated business solutions services and establish inventories within Broken Arrow’s Fleet Building. NAPA serves as the primary supplier of automotive replacement parts and other supplies or equipment needed by the City. To facilitate this, NAPA maintains inventory on City property through an on-site, NAPA-managed store.
In the agreement Pricing Option #2a, which is titled "10% Gross Profit on Products / Monthly Operating Expenses." Under this plan, NAPA will provide products to the City at a net profit target of 10% after accounting for both product costs and operational expenses. Both NAPA-branded and non-NAPA products will be priced to achieve this 10% gross profit margin.
This request marks the first renewal of the contract with Genuine Parts Company.
Cost: 10% gross profit rate added to NAPA’s cost for parts and supplies needed for City of Broken Arrow’s vehicle and equipment plus the operational expenses.
Funding Source: BAMA
Requested By: Ryan Baze, Director of Maintenance Services
Approved By: City Manager’s Office
Attachments: NAPA IBS Contract Renewal 2024, NAPA IBS Contract 7-25-23
Recommendation:
recommend
Approve and authorize execution of an integrated supply agreement Renewal No. 1 by and between Genuine Parts Company d/b/a NAPA Auto Parts and the City of Broken Arrow pursuant to the Sourcewell Cooperative Purchasing contract (formerly NJPA) number 110520-GPC
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