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Title:
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Dollar Limit Increase and One-Year Renewal to the Term Contract for Heavy-Duty Original Equipment Manufacturer (OEM) Cab/Chassis Parts for the Fleet Services Department (Citywide)
Fleet Services has requested an increase for Year 4 and an increase and renewal for Year 5 to help offset an increase in parts pricing due to inflation and increased use due to longer vehicle retention. This contract is set up with a percentage discount off manufacturer pricing; as manufacturer pricing continues to increase, so does the annual spend.
The Fleet Services Department and Purchasing recommend authorizing the renewal with Rush Truck Centers of Arizona dba Rush Truck Center Phoenix; Freightliner of Arizona, LLC dba Velocity Truck Centers; Inland Kenworth Inc.; RWC International dba RWC Group; and Cummins Inc. dba Cummins Sales and Service (a Mesa business); and increasing Year 4 by $225,000 from $825,000 to $1,050,000 and renewing Year 5 at $1,050,000, based on estimated requirements.
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