Memorandum

Department of Finance

DATE:	January 15, 2009
TO:	David L. Corliss
	City Manager
FROM:	Alan D. Landis
	Purchasing Specialist
RE:	Vehicle Purchases

In 2006 Finance and the Central Maintenance Garage were directed to discontinue purchasing vehicles off the Mid America Council of Public Purchasing (MACPP) cooperative contract.  The recommendation was made to ensure the local dealers would have a better opportunity to bid.  Although bids were sent to the dealers through MACPP they felt like they didn’t have the facility to handle such large volumes of vehicles. 

In 2007 and 2008 we request sealed bids for all vehicles we normally purchased off the MACPP contract.  In 2007 the City spent an additional $7,838.50 and in 2008 the City spent an additional $2,349.16 over the MACPP cooperative bid price.  The total amount spent over the cooperative bid price is $10,217.66 plus an additional $534.95 for printing, envelopes, mailing, and advertising. 

In the two years there were 15 vehicle bids mailed.  A local vendor won 5 out of the 15 bids offered and a nonlocal dealer won 10 bids.

Does the City want to continue to purchase vehicles by sealed bid or go back to purchasing them off the MACPP cooperative contract?