Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 4/30/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A3
ACTION:  Approve the utilization of a 20-month Sourcewell cooperative contract with National 
Automotive Parts Association (NAPA), a division of Genuine Parts Company, to operate an on-site 
inventory parts store.
FISCAL IMPACT:  The total cost of this contract will not exceed $4,400,000. 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:  Approve the contract utilization.
 
BACKGROUND INFORMATION:  (09064-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 four full-time employees and will cover all hours of the shop operation.
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 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 is only charged when a 
part is used. An estimated 20-month spending profile is shown in the table below:
NAPA Current and Projected Expenses for the 20-month 
Contract
  Monthly
20-Month
Average monthly expenses
 $220,000
$4,400,000
ATTACHMENTS: NAPA Integrated Supply Agreement 
STAFF CONTACT(S):  David Tavares, Deputy Public Works Director - Field Operations, (480) 350-
2819
Department Director:  Laura Calder, Financial Services Director  
Legal review by:  Dave Park, Senior Assistant City Attorney
Prepared by:  Alicia Ruiz, Procurement Officer