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2 <br />This integrated supply model allows the County to benefit from: <br />1) "Just in Time" inventory delivery, allowing the County to avoid carrying inventory for its <br />automotive and facilities maintenance divisions; <br />2) On site, professional supply management, supported through NJPA, the Genuine Parts <br />Company ("GPC"), NAPA Automotive Parts ("NAPA"), and Walker Automotive Supply, <br />Inc.; and <br />3) Lower transaction costs, higher employee productivity, and better customer service to the <br />County's internal customers and residents. <br />This supply model is successfully servicing other North Carolina local governments such as the <br />Town of Cary, Gaston County, and Mecklenburg County Emergency Services. <br />The Agreement, reviewed and approved by the County Attorney, allows either party to terminate <br />by giving 60 days notice, without cause. <br />Assuming Board approval, the program will be effective July 1, 2011. <br />FINANCIAL IMPACT: Orange County projects its estimated net annual savings to be between <br />$20,000 and $40,000 for automotive and facilities maintenance supplies due to lower cost per <br />unit and more efficient management of the inventory. <br />Should either Walker or the County choose to invoke the 60-day termination notice at some <br />point in the future, the County would be required to re-establish an in-house inventory and <br />resume inventorying its own supplies. Inventory levels for fleet and facilities supplies at March <br />31, 2011 are estimated at $200,000. <br />RECOMMENDATION(S): The Manager recommends that the Board approve an integrated <br />supply services agreement with Walker Automotive Supply, Inc. and authorize the Chair to sign <br />on behalf of the Board. <br />