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HomeMy WebLinkAboutItem 10d - Purchase of Citywide Office Supplies DATE: October 6, 2020 TO: Honorable Mayor and City Council FROM: Hue C. Quach, Administrative Services Director By: Vanina Rynkiewicz, Purchasing Officer SUBJECT: CONTRACT FOR THE PURCHASE OF CITYWIDE OFFICE SUPPLIES WITH OFFICE DEPOT IN AN AMOUNT NOT TO EXCEED $110,000 ANNUALLY FOR TWO YEARS, WITH THE OPTION OF RENEWING THE CONTRACT FOR THREE (3) ADDITIONAL ONE-YEAR PERIODS THROUGH JUNE 30, 2025 Recommendation: Approve SUMMARY The City spends approximately $110,000 per year on average for citywide office supplies. Staff performed a price and benefit comparison analysis of current available office supply contracts that were competitively bid and awarded to determine the lowest pricing and best value to the City. The top 100 items bought by the City by usage were selected to compare between the current contract pricing with the Foundation for California Community Colleges (“FCCC”) and other public procurement contracts available. It is recommended the City Council authorize the award of a contract for the purchase of office supplies with Office Depot utilizing the OMNIA (formerly National Intergovernmental Purchasing Alliance-NIPA and U.S. Communities) Region 4 cooperative contract number R190303, for the period of July 1, 2020, through June 30, 2022, with the option of renewing the contract for three additional one-year periods through June 30, 2025. DISCUSSION On June 21, 2016, the City Council approved a contract for the purchase of office supplies with Office Depot for $125,000 annually for one year, plus three additional one-year extensions piggybacking on the Foundation for California Community Colleges (“FCCC”) contract. Citywide Office Supplies Purchase Contract October 6, 2020 Page 2 of 3 Office supplies are ordered citywide on an as needed basis by each department. The existing contract with Office Depot provides next-day and desktop delivery of office supplies to each City location. Departments place their orders mainly online through the Office Depot internet portal at the contracted price, and some orders are placed over the phone by contacting an account manager directly. Staff searched and narrowed down the two most competitive cooperative purchase agreements to use for the preparation of a Price and Benefit Comparison analysis, utilizing the Foundation for California Community Colleges and the OMNIA Region 4 contracts to ascertain that the lowest pricing and best value to the City was achieved. The following are the results of the comparison analysis using the City’s most commonly 100 used items: Vendor Cooperative Contract Sample Cost Office Depot FCCC (Foundation for California Community Colleges) $ 33,780.14 Office Depot OMNIA Region 4 (New proposed Contract) $ 32,007.67 The proposal required not only cost savings compared to the current contract, but also maintained additional negotiated benefits including rebates, incentives, and technical capabilities including online desktop ordering, fill rate, free delivery, retail store proximity, minimum order amount required for next day delivery, and return policy. The California Government Code allows public agencies to participate in cooperative purchasing agreements while adhering to the City’s rules and regulations. By participating in the national cooperative program with OMNIA Region 4 contract with Office Depot, it streamlines the process of procuring office supplies, while receiving the best price possible by obtaining product cost savings through nationally leveraged pricing. Office Depot’s pricing and capabilities utilizing the OMNIA Region 4 cooperative contract pricing is approximately 5.5% lower than the current contract for the same items. The contract period is for the period of July 1, 2020, through June 30, 2022, with the option of renewing the contract for three (3) additional one-year periods through June 30, 2025. Office Depot currently provides on-time, next day deliveries to each user’s desktop and consistently provides excellent customer service. Office Depot’s assigned account manager has promised to continue to provide the City with the same level of service and professionalism with the additional benefits of the lower costs. ENVIRONMENTAL ANALYSIS The proposed actions do not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt from CEQA. Citywide Office Supplies Purchase Contract October 6, 2020 Page 3 of 3 FISCAL IMPACT Funds are appropriated in Fiscal Year 2020-21 Operating Budget by each department and their respective funds for the purchases of office supplies citywide. Cumulatively, total office supplies expenditures are not anticipated to exceed $110,000 per year. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and authorize the City Manager to award a contract for the purchase of Citywide office supplies with Office Depot in an amount not to exceed $110,000 annually , with the option of renewing the Contract for three (3) additional one-year periods through June 30, 2025.