HomeMy WebLinkAboutItem 1g: Contract with Office Depot for the purchase of office supplies.Administrative Services Department
DATE: November 20, 2012
TO: Honorable Mayor and City Council
FROM: Hue Quach, Administrative Services DiTctor
By: Jan Steese, Purchasing Offic6r-DL—
SUBJECT: AUTHORIZE THE CITY MANAGER TO AWARD A CONTRACT FOR
THE PURCHASE OF OFFICE SUPPLIES TO OFFICE DEPOT IN THE
AMOUNT NOT TO EXCEED $49,000 FOR THE 2012-13 FISCAL YEAR,
WITH THE OPTION OF RENEWING THE CONTRACT FOR THREE (3)
ADDITIONAL ONE-YEAR PERIODS NOT TO EXCEED $84,000 PER
YEAR THROUGH JUNE 30, 2016
The City spends approximately $84,000 on average per year for citywide office
supplies. The existing contract with Office Depot provides next day and desktop
delivery of office supplies used on a daily basis citywide. Departments place their
orders online through the Internet, by fax, or by phone. Approximately 1,541 items were
purchased in the FY 2011-12. From the 1,541 items ordered, approximately 236 items
were selected for the vendors to submit with their proposal.
It is recommended the City Council authorize award of a contract for the purchase of
office supplies to Office Depot for the period of December 1, 2012, through June 30,
2013, with the option of renewing the contract for three (3) additional one-year periods
through June 30, 2016. Office Depot currently provides on time, next day deliveries to
each user's desktop, consistently provides excellent customer service and they offer
overall greater discounts than Staples when all office supply purchases are
incorporated.
On July 21, 2009, City Council approved a contract for the purchase of office supplies to
Office Depot utilizing a cooperatively bid, multi-agency contract. The current contract
expired on June 30, 2012, and a new contract is needed.
Award of Office Supplies Purchase Contract
Page 2 of 3
November 20, 2012
Office supplies are ordered by each department on a citywide basis. The existing
contract with Office Depot offers next day, desktop delivery, order placement by fax,
phone, or online, and great customer service. In addition, Office Depot offers a store
purchase card program which allows staff to go to the local Office Depot store to
purchase items needed immediately at the same discount afforded if they were to order
them online, by fax, or by phone.
Staff prepared and mailed Request for Proposals on June 22, 2012, to three (3)
prospective vendors. Two (2) responses were received at the proposal opening held on
July 31, 2012, from Staples and Office Depot. The proposals were evaluated based on
approximately 236 of the City's high usage items from the 1,570 items ordered last
fiscal year. Based on this list and the discounted prices offered, it is recommended that
City Council approve the award of a contract to Office Depot for the period of December
1, 2012, through June 30, 2013, with the option of renewing the contract for three (3)
additional one-year periods through June 30, 2016.
The following are the results of the proposals submitted on July 31, 2012 using the
selected 236 high usage items to further analyze the bids:
Independent Stationers No response
Staples Office Supplies $4,289.52 with discounts of 30% - 67% off list
Office Depot $4,427.99 with discounts of 32% - 69% off list
The list provided in the RFP included items purchased last year with a quantity of 5 or
more. The remaining 1,334 items ordered were a quantity less than 5 and included
things like miscellaneous toner cartridges, folders, binders, break room supplies, office
cleaning supplies, and specialty paper. These items were offered at a discount
between 32% and 69% from Office Depot and 30% to 67% from Staples depending on
the items.
In order to determine the best overall bidder, in addition to the 236 items listed in the
RFP, a list of 17 randomly selected items purchased last year with a quantity between I
and 3 was chosen for analysis. Retail unit pricing of the 17 small quantity (3 or less)
items purchased last year and the discounts offered by each bidder was applied in order
to determine the overall best bid. Using this scenario with the 17 items, Office Depot
was lower than Staples by a total of $89.90. Staples offered an average percentage
discount of 36,83% while Office Depot offered 54.47%. It is anticipated that many of the
same low quantity items may be ordered again this fiscal year and therefore the savings
would be greater from Office Depot using the scenario mentioned above.
Pricing from both vendors is subject to increases in paper products each year but only
upon written confirmation from the manufacturer of the increase and the exact
percentage is not determined in advance due to the fluctuation in paper prices.
However, historically the average increases from Office Depot have been approximately
1.5 to 2% each year for paper and can vary depending on the market. The contract
Award of Office Supplies Purchase Contract
Page 3 of 3
November 20, 2012
requires the successful vendor to submit a thirty (30) day written notice for any
requested price increases and their request must include any supporting documentation
from the manufacturer as to the reason for the increase and the percentage of the
increase.
Based on the 236 items included in the RFP, and the 17 items randomly selected for
analysis, it is recommended that City Council award a contract to Office Depot for the
purchase of citywide office supplies.
Funds are appropriated in the FY 2012-13 Operating Budget by each department for the
purchase of office supplies used citywide and do not anticipate to exceed $84,000
annually.
It is recommended the City Council authorize the City Manager to award a contract for
the purchase of office supplies from Office Depot in the amount not to exceed $49,000
for the FY 2012-13, with the option of renewing the contract for three (3) additional one-
year periods not to exceed $84,000 per year through June 30, 2016.
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