The City of Colorado Springs, Colo., has decided to keep its fleet maintenance provider for now, cancelling a request for proposal for maintenance. The city cited issues with transitioning from one contractor to another and has negotiated a one-year extension for $9.5 million, the Colorado Springs Independent reported.
The city and utility signed a five-year fleet maintenance contract with Serco beginning in 2014, a contract worth $35 million. City officials estimated the move would achieve savings of more than $4 million over the life of the contract.
However, these numbers have not been achieved due to higher costs. An audit after the first year of the contract showed that costs were higher than projected due to a new service center. The provider sued the city twice, stating that it had lost money and would require a price increase. The vendor and city’s settlement included price escalations.