Title
Proposed Amendment No. 2
Contract No. 1802170/SCN-0000140
Fleet Management Services
O&M
Body
Agenda of: December 11, 2024
Item No.: 2024-409
Amount: Original Contract $9,232,500.00
Amendment No. 1 4,200,000.00
Proposed Amendment No. 2 500,000.00
Total Contract Amount $13,932,500.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 2, 2024
RE: Proposed Amendment No. 2
Contract No. 1802170/SCN-0000140
Fleet Management Services
Vendor: Enterprise Fleet Management
Status: Amendment/Change Order
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1802170/SCN-0000140, Proposed Amendment No. 2, “Fleet Management Services” with Enterprise Fleet Management, at an increased cost of $500,000.00 for a total cost not to exceed $13,932,500.00 and an increased duration of three (3) months for a total duration of five (5) years and three (3) months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA operates a fleet of approximately 379 vehicles, with around 360 actively in use. At present, the fleet is managed under an Enterprise Fleet Management contract. GLWA aims to ensure the continued provision of comprehensive fleet management services for the vehicles currently in operation while the new contract undergoes the award process.
JUSTIFICATION
A temporary provision is needed to ensure that financial obligations are met, and services continue uninterrupted while the new contract with Enterprise Fleet Management is being finalized. There is a funding/timing shortfall for this contract caused by several items that were unforeseen during the Request for Proposals (RFP) process, including:
1. The contract is in the final stages of being awarded and will require additional time to complete due to the responses received during the RFP process.
2. GLWA has contracted with Plante Moran to estimate the total financial implications associated with GLWA’s fleet services RFP for each vendor. We felt this report was necessary to give the Board a clear understanding of the total cost of ownership of the GLWA fleet.
3. The preparation of this report has added additional two (2) months to the overall RFP process. (November 2024 / December 2024)
4. The additional months to prepare this report have also created a need for additional dollars to cover Fleet expenses for November 2024 and December 2024.
PROJECT MANAGEMENT STATUS
Original Contract Time 5 years (11/04/2019 - 11/04/2024)
Amendment No. 1 0 years
Proposed Amendment No. 2 3 months (11/05/2024 - 02/04/2025)
New Contract Time 5 years 3 months (11/04/2019 - 02/04/2025)
PROJECT ESTIMATE
Original Contract Price $ 9,232,500.00
Amendment No. 1 4,200,000.00
Proposed Amendment No. 2 500,000.00
New Contract Total $13,592,500.00
FINANCIAL PLAN IMPACT
Summary: The proposed amendment No. 2 with Enterprise Fleet Management encompasses both Operations & Maintenance and Improvements & Extensions expense. Sufficient funds will be provided in the financial plan for this contract.
Funding Source: Operations & Maintenance (O&M), Improvements and Extensions (I&E) Budget
Cost Center(s): Fleet Operations 882422
Expense Type(s):
Operations & Maintenance (O&M) Contractual Operating Services (617900)
Improvements and Extensions (I&E) Capital Outlay over $5k (I&E-Capitalized) (901100)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2025 Budget (Prorated) $2,240,000.00
Financial Plan Forecast $2,240,000.00
Proposed Contract Amount 500,000.00
Variance (positive/ (negative)) $1,740,000.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 11, 2024.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.