3 | A u d i t o f C o n t r a c t N o . 2 0 1 7 ‐ 0 5 5 A p r i l 2 0 2 1 Background and Objectives The Clerk of the Circuit Court and County Comptroller’s Internal Audit Department and Office of the Inspector General has completed an audit of Contract No. 2017‐055 Term Contract for Fleet‐Related Maintenance Equipment, Supplies, Services and Inventory Management Solutions. The audit was planned and conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The purpose of the audit was to determine compliance with the terms of the contract. Background Sarasota County entered into an equipment, supplies, services, and inventory management solutions agreement (Agreement) with the Genuine Parts Company. The initial Agreement, Contract No. 2011‐550, was entered into on September 13, 2011. A second Agreement, Contract No. 2017‐055, was entered into on December 1, 2016, and continues to be in place until November 30, 2020. This agreement has been amended twice with an amendment on September 25, 2017 which lowered the gross profit from 10% to either 8% or 6% based on the invoice amount for “outside” purchases or services. The current Agreement may be renewed for up to one additional one year period subject to written agreement of both parties. The contractor is required to maintain and operate three vehicle and equipment maintenance parts facilities (on‐site stores) at existing Fleet Services facilities throughout Sarasota County during normal working hours, five days a week Monday through Friday. The County is invoiced for all inventory purchases pursuant to the Agreement on a monthly basis according to the pricing plan in Exhibit B of the Agreement. The overall goal of the pricing plan is to achieve a 10% net profit for the contractor by adjusting the pricing for two elements, Product Costs and Operational Costs. Product Costs can be broken down by either “NAPA Product Costs” or “Non‐NAPA Product Costs”. NAPA Product Costs use the pricing of NAPA supplier manufactured products. Non‐ NAPA Product Costs use the pricing of products which have not been manufactured by NAPA suppliers but which have been acquired for the County by the Contractor pursuant to the Agreement. Non‐NAPA Product Costs also include any “outside” purchases or services, which
RkJQdWJsaXNoZXIy MzM3Mjg=