4 | Follow-up of Contract No 2022-003 with NAPA Auto Parts and Cooperative Purchase Request Contract with Sourcewell November 2024 • Gross Profit Rate • Supporting Documentation, • Inappropriate Purchases, and • Review Process for NAPA Invoices From February of 2017 through January 2021, Sarasota County was in a cooperative purchasing agreement (“piggyback”) with the National Joint Powers Alliance. A “piggyback” is a contract that allows Sarasota County, a third party, the procurement of services and goods, such as vehicles and related equipment and accessories, through an already existing contractual framework (between NJPA and the State of Florida). This previous agreement utilized a “Percent off Manufacturers Suggested Retail Price (MSRP) Pricing Model” and allowed for discounts of up to 25.86% off MSRP. Currently, Sarasota County is in a cooperative purchasing agreement (“piggyback”) with Sourcewell and utilizes both solicitation numbers to provide services, mainly to the County’s Fleet Services Department. Sourcewell, with NAPA Integrated Business Solutions, entered into a contract in December of 2020, with the National Auto Fleets contract being signed in November 2021. Per their contract(s), NAPA, under the parent company, Genuine Parts, is listed as a ‘Vendor’ for Sourcewell that provides products, services, and/or equipment to Sourcewell and the entities that are contracted with Sourcewell through cooperative purchasing agreements. Through this, the County is provided equipment and services including, but not limited to: technician training, auto parts ranging from small vehicles to heavy-duty, industrial vehicles/trucks, as well as having emergency, 24/7 services, and vendor-managed inventory options available. These current cooperative purchasing agreements that Sarasota County is a part of, are structured on a Pricing List/Model, as well, and offer discounts up to 24.45% off the MSRP and include pricing for “up-fitting” options that can be added to the vehicle for purchase. This audit focused specifically on the analyzation of invoices and related supporting documentation to ensure that management actions were effectively implemented to address the Opportunities for Improvement, listed in the original audit. The original audit report of Cooperative Purchase Request for NJPA, currently Sourcewell, concluded the proper internal controls/ procedures/ review process utilized for the invoices were not in place, in regards to: • Threshold Limits for Purchases • Inappropriate Purchases • Supporting Documentation
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