When making significant purchasing decisions, many government agencies will utilize a competitive bidding process with the intentions of getting the best value for a project.
But while this sealed bidding process may identify the least expensive proposal, it often is not the best deal and does not take into account other factors such as the support of local partners.
At its regular meeting on Dec. 10, the Naples City Council awarded the city’s $7.5 million fleet services contract to Sam Galloway Ford Inc. of Fort Myers for a three-year period, commencing immediately and ending Sept. 30, 2028. As the family owners and operators of Tamiami Ford in Naples since 1973, we were, of course disappointed, but not surprised.
Tamiami Ford has provided fleet vehicle purchases, repairs and parts to the City of Naples for more than 25 years. We have a significant presence in the community. Between our business operations and personal property, we paid more than $300,000 in Collier County property taxes last year alone. Sam Galloway Ford, located in Lee County, paid none.
Beyond taxes, our company has consistently invested in Naples through philanthropy, community involvement and support of local initiatives. The direction taken is disheartening, and reflects an unfortunate lack of loyalty to those who have supported Naples for generations.
During the public hearing, Naples City Council Member Beth Petrunoff suggested that we “sharpen our pencils” for next time. With respect, our pencils have been sharp for 25 years. The difference between our bid and Galloway’s was approximately 1.56 percent on vehicle pricing.
What that spreadsheet calculation does not capture is the cost of sending city vehicles 41 miles each way — well over an hour round trip — for warranty work, recalls and service. It also doesn’t capture the loss of productivity when a city employee waits for a vehicle in Fort Myers.
And it doesn’t capture what happens when an auto dealer prices work below sustainable cost to win volume. It’s worth noting that when Galloway went after the Collier County Public Schools contract, administrators evaluated the same information and chose to renew with Tamiami Ford. They understood that the lowest purchase price is not always the lowest total cost.
As a direct consequence of the Naples City Council’s recent decision, we have had to eliminate certain municipal fleet service positions — jobs that were held by Collier County residents.
It should be noted that two of the key decision-makers are relative newcomers. Council Member Petrunoff moved here in 2008, while City Manager Gary Young arrived in 2016, and currently doesn’t even live in Naples — he resides in Bonita Springs. I don’t question their intentions, but I do question whether decision-makers with a combined 26 years in our community fully appreciate what it means to support businesses that have invested here for generations.
In addition to recent renovations at Tamiami Ford and our Hyundai of Naples dealership, we are currently investing millions of dollars in building a brand-new Genesis of Naples facility at Pine Ridge Road and Interstate 75. The county permitting and impact fees for the Genesis project alone will exceed the amount the city allegedly “saved” on this most recent fleet contract.
Our family continues to invest in Naples because it’s our home. It always has been.
The Naples City Council City says our “relationship is valued.” I surmise time will tell whether that’s true, or whether it was just something to say while showing a 52-year partner the door.
Tim Zellers moved to Naples with his family in 1973. A long-time community supporter, Zellers is CEO of the family-owned and operated Tamiami Ford, Tamiami Hyundai and Genesis of Naples.
This article originally appeared on Naples Daily News: Local government agencies should support local businesses | Opinion
Reporting by Tim Zellers / Naples Daily News
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