Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 1/22/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 7B6
ACTION: Ratify the utilization of a two-month Sourcewell cooperative contract with National Automotive 
Parts Association (NAPA), a division of Genuine Parts Company, to operate an on-site inventory parts 
store for the Public Works Department.
FISCAL IMPACT:  The total cost of this contract will not exceed $520,000. Sufficient funds have been 
appropriated in the General Fund, Cost Center 3322 (Fleet Services Maintenance), for anticipated 
expenditures during the current fiscal year and future fiscal years, contingent upon City Council approval 
of the City’s annual budget.
RECOMMENDATION:  Ratify the utilization of the contract.
 
BACKGROUND INFORMATION:  (110520-GPC) Sourcewell solicited and awarded contracts 
containing cooperative language, allowing its use by other governmental agencies for the purchase of 
aftermarket auto parts and equipment and the option to contract with NAPA Integrated Business 
Solutions (IBS) to operate an on-site inventory parts maintenance store. Under this agreement, NAPA 
IBS is responsible for all aspects of the on-site inventory parts store, including maintaining established 
inventory levels of parts, securing special order parts and providing all personnel to operate the parts 
store. NAPA personnel consist of three full-time employees (one assigned to the day shift and one 
assigned to the night shift and a delivery driver).
Public Works began using NAPA for an on-site inventory parts store operation in July 2018, under the 
original State of Arizona- issued cooperative contract. The content, scope and conditions in the new 
Sourcewell/NAPA contract are similar to the IBS storeroom management service, which has proven to 
be an efficient, cost effective and advantageous model for the City.
The NAPA contract is structured as a “cost plus” system, where the price of parts is cost plus 10%, the 
price of tires is cost plus 5% and the price of staffing is billed at cost. The City bears no cost in on-hand 
inventory and is only charged when a part is invoiced. 
Staff recommends approval of the 2-month contract utilization to allow additional time to fully review and 
execute the new Sourcewell Integrated Supply Agreement between NAPA and the City.
To avoid a lapse in contract coverage, staff requested delegated authority on December 30, 2025, to 
approve the utilization of the contract and is now seeking City Council approval to ratify this action. As 
allowed for by City Procurement Code, Laura Calder, Financial Services Director, has the authority to 
award and sign contracts exceeding $100,000 when there are less than two Regular Council Meetings 
scheduled in any month and action is necessary to ensure operational efficiencies.
ATTACHMENTS: N/A
STAFF CONTACT(S): David Tavares, Deputy Public Works Director - Field Operations, (480) 350-
2819
Department Director:  Laura Calder, Financial Services Director

2
Legal review by:  Dave Park, Senior Assistant City Attorney
Prepared by:  Alicia Ruiz, Procurement Officer