Light Duty Auto Parts WSCA Contract

1. Light Duty Auto PartsWSCA Contract May 18, 2010

2. Sourcing Team • Eileen Tardiff, California (Contract Admin.) • Bob Riola, California (Subject Matter Expert) • Susanna Hernandez, Arizona • Adrian Ruger, Utah • Jason Soza, Alaska • Tony Opalka, Idaho • David Reynolds, Oregon • Douglas Richins, WSCA (Advisor)

3. Brief Scope • All parts are for Light Duty vehicles • All parts covered are after-market parts • Items covered under this contract are “necessities”, not “nice-ities” • Examples of “nice-ities” would be paint, floor mats, seat covers, car fragrance, etc. • Contract expires December 31, 2012 • There are 2 one (1) year options to extend

4. Procurement Process • Fully compliant with California Law • Market research meetings were conducted with potential bidders • Conducted multiple meetings with the Sourcing Team • Notice of Procurement was released to all States • Collected intent-to-participate forms from states

5. Alaska Arizona California Colorado Hawaii Idaho Louisiana Maine Minnesota Nebraska Nevada New Hampshire North Dakota Oregon South Dakota Tennessee Utah Vermont Intent To Participate

6. Procurement Process (2) • RFP Release Date – September 16, 2009 • Proposal Submittal Date – November 4, 2009 • Proposals Received from 5 Suppliers • Multi-Phase Evaluation by Sourcing Team • Contracts Awarded to 4 Suppliers • Contract Start Date – April 30, 2010

7. 18 Awarded CategoriesSourcing team chose 1 comparable item per each category to evaluate; allowed for different discounts by category, creating opportunity of better competition within each category • Heating and Cooling (engine) • Lamps and Lighting and Mirrors • Oils and Lubricants (regular and synthetic) • Pumps (fuel and water) • Suspension, Shocks, Struts and Steering • Wipers and Washers • Winter Accessories • Air Conditioning • Alternators and Starters • Batteries • Bearings, Ball and Roller • Belts and Hoses • Brakes • Electrical and Ignition • Emissions and Exhaust • Engine and Drive Train • Filters (Oil, gas, air and trans) • Gaskets and Seals

8. Evaluation Criteria 2 Part Evaluation • Technical and Administrative (based on California law) – pass/fail • Cost - minimum percentage offered in each category - parts were chosen from 4 different fleet vehicles - one item per category, per vehicle - evaluated same item for 4 different fleet vehicles - items were totaled per vehicle where the competitive range was determined - all bidders within 20% of the competitive range received an award

9. Evaluation ComparisonAwards to any supplier within 20% of the computed average(Percentages are in parenthesis next to supplier name) O’Reilly: Crown Vic: $ 1385.11 Silverado: $ 1493.10 Impala: $ 1784.92 Caravan: $ 932.81 Total: $ 5595.94 Within 20%: 2.74% Autozone: Crown Vic: $ 1515.72 Silverado: $ 1582.85 Impala: $ 1506.82 Caravan: $ 922.25 Total: $ 5527.64 Within 20%: 1.48% B.O.R.A.S.: Crown Vic: $ 1231.17 Silverado: $ 1421.01 Impala: $ 1521.70 Caravan: $ 1043.30 Total: $ 5127.17 Within 20%: - 4.22% NAPA: Crown Vic: $ 1727.46 Silverado: $ 1799.99 Impala: $ 1639.41 Caravan: $ 1206.50 Total: $ 6373.36 Within 20%: 17.01% Computed Average :$5,446.92

10. Awardees NAPA Auto Parts B.O.R.A.S. aka Bucks Off Road and Automotive Supply O’Reilly Auto Parts (and all operating names such as Shucks, Kragen, etc.) AutoZone

11. Contract High Points • Discounts available to all participating states • Supplier to carry complete inventory available in the 18 specific categories from any make or model vehicle • Detailed usage reporting (depending upon state requirements) • Must offer lowest sale price within the nation if cheaper than the contract price • Dedicated contract websites • Offered discounts are the minimum • Short delivery times via retail store or delivery

12. Easy to Use Contract • Each supplier has a specific website for the WSCA contract with a private login – available from the supplier once your PA is in place • All Pricing will be listed on the webpage with the discount • Recommend that users “shop” each supplier so you get the best price for the part needed • Parts may be bought using P-Card, or by PO which is billed to the department • All suppliers offer delivery, in-store purchasing and on-line purchasing (see RFP for specific details)

13. Things to Understand… • Discounts are off of their price listed which could be extremely different from each other; each supplier develops their own list price; important to have suppliers compete for fair pricing • Some parts may have delivery charges depending upon whether the part is a stock item or something which needs to be ordered (i.e. engines, OEM parts) • Although this contract has a wide variety of categories for auto parts, not all vehicle items can be purchased on this contract (i.e. floor mats, seat covers, paint, etc.) • You may call suppliers and try to negotiate a lower price for quantity purchases or high dollar items…remember, the percentage bid is the minimum percentage off of each of the supplier’s price

14. State of California Web Site and Contact • State of California User Guide and Contracts http://www.pd.dgs.ca.gov/masters/Auto+parts.htm • California Contact Eileen Tardiff – Lead State Contract Administrator (916) 375-4390 or eileen.tardiff@dgs.ca.gov • WSCA webpage http://www.aboutwsca.org/contract.cfm/contract/w28-2008

15. WSCA Website and Contacts • http://www.aboutwsca.org/contract.cfm/contract/w28-2008 • Contact: - Kathryn Offerdahl, WSCA/NASPO Cooperative Development Analyst - Paul Stembler, WSCA/NASPO Cooperative Development Coordinato shared email address:wncoopdt@gmail.com

16. Next Steps • Each Participating State needs to execute a Participating Addendum with selected contractors • Participating Addendum Process

17. Where’s the Information • WSCA Website: aboutwsca.org - Auto Parts Webinar Power Point Presentation - Sample Participating Addendum - WSCA Agreements Per Supplier - Completed Individual State Participating Addendums

18. Through the Participating Addendum, States May… Limit Awardees Include unique required Terms and Conditions Add an administrative fee Request state-specific reporting or requirements

19. Eligibility Process • Will be processed at two different levels - 1st Phase: States that signed an Intent to Participate - 2nd Phase: Other States and individual entities not included in the 1st Phase • In all cases the State Chief Procurement Official will have the final say who can and cannot participate

20. Eligibility Process cont. • The WSCA/NASPO Cooperative Development Team (WNCDT) will contact the State Chief Procurement Officials directly to start the process (so expect emails from wncoopdt@gmail.com). • All 50 States and DC have executed the NASPO Cooperative Memorandum of Agreement, so all are eligible to use any WSCA or NASPO Cooperative contract, at their choice.

21. Who Can Participate • Participation at several different level 1. State signs Participating Addendum for entire state and its cooperative purchasing venture. - Every legally eligible entity in the state can use 2. State signs a Participating Addendum ONLY for non-state entities

22. Who Can Participate 3. State does not sign a Participating Addendum - Every political subdivision PA within that state must be approved by the state chief procurement official - Sometimes individually - Sometimes by entity

23. Process for Intent to Participate How do we get states signed up? • Intent to Participate is the trigger, WNDCT will send all states that executed an Intent to Participate a copy of the draft participating addendum • Contract providers will be encouranged to contact all the state chief procurement officials of all states that executed an Intent to Participate and discuss options and alternatives.

24. Process for Intent to Participate (2) • State Chief Procurement officials (or designated representative-please let WNCDT know contact information for designated representative) will be WNCDT contact during the rest of the process. • State completes the draft participating addendum for each contract provider supplied by WNCDT and forwards it AS A DRAFT back to WNCDT. WNCDT will forward draft to contract provider. Negotiations will take place directly between state and contract provider. When agreement is reached, the state completes and signs participating addendum to WNCDT (at wncoopdt@gmail.com). WNCDT forwards signed participating addendum to Contractor. If a state must sign last, send the prepared copy to WNCDT.

25. Process for Intent to Participate (3) • Contract providers’ point of contact signs participating addendum and forwards to WNCDT at wncoopdt@gmail.com. • WNCDT will simply annotate date of processing, create a PDF file of the participating addendum.

26. Process for Intent to Participate (4) • WNCDT will forward copies of the PDF file to state, Contractors point of contact and Contract Lead Administrator (WSCA/NASPO Coorperative Development Team (Kate and Paul) will complete steps 6 and 7 in one day)

27. Then What? • Participating addendum will be posted on WSCA Website • Participation will be indicated on the WSCA Website • Contract Providers will create and maintain State specific Website

28. Thank You • Please let the WNCDT know if we can help: - Kathryn Offerdahl, WSCA/NASPO Cooperative Development Analyst - Paul Stembler, WSCA/NASPO Cooperative Development Coordinator We use wncoopdt@gmail.com to keep traffic about this contract concentrated in one location.