Report to Mayor and City Council
Tuesday, November 21, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVING AN INCREASE TO THE APPROVED FISCAL YEAR SPEND WITH HOME DEPOT FOR MAINTENANCE, REPAIR, OPERATING SUPPLIES, INDUSTRIAL SUPPLIES AND RELATED PRODUCTS AND SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $400,000 PER YEAR (CITY COUNCIL)
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I. SUMMARY
City departments utilize competitively solicited cooperative purchase agreements by other government jurisdictions or public agencies to maximize cost savings and efficiently use staff resources when purchasing goods and services. The County of Maricopa, Arizona awarded a Contract No. 16154 to the Home Depot as a result of request for proposal No. 16-154-RFP for maintenance, repair and operation supplies. This contract is available to the City of Carson through Omnia Partners, Purblic Sector, a group purchasing organization. Home Depot provides maintenance, hardware and paint supplies required by our City departments. In March of 2020, the City Council authorize the use of Omnia Partners’ cooperative purchasing agreement with Home Depot for an amount not to exceed $200,000 per fiscal year. Staff is now recommending increasing the approved amount to $400,000 per fiscal year.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE the City, through the Purchasing Division, to make purchases of approved Maintenance, Repair and Operations (MRO) under Omnia Partners Contract #16154 in a cumulative amount not to exceed $400,000 per fiscal year (representing an increase of $200,000 per fiscal year from the previously-approved limit of $200,000 per fiscal year), effective November 21, 2023 to December 31, 2026 and for each fiscal year contained within said effective period as allowed by CMC Section 2611(g).
2. APPROVE form purchase orders to be used as-needed to effectuate such purchases pursuant to CMC Section 2605 in determination of the Purchasing Manager.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate
. IV. BACKGROUND
To maximize cost savings and staff resources, many governmental jurisdictions or public agencies combine their contracting efforts through joint powers associations via Cooperative Purchasing Agreements which increases cost savings through significant volume discounts.
The City gains access to Contract No. 16154 between Maricopa County, a political subdivision of the State of Arizona, and Home Depot U.S.A., Inc., a Delaware corporation, through Omnia Partners for purchases of authorized supplies, materials, equipment or services. Pursuant to CMC Section 2611(g), the City Council authorized the use of said resulting in award to the lowest responsible and responsive bidder (CMC Section 2610), provided that the selected bidder was selected in compliance with the competitive bidding or proposal process requirements of any participating entity or association within three (3) years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing, approved in March 5, 2020 for the entire term of the cooperative agreement, amended through December 31, 2026.
Home Depot has been one of the City’s primary sources for various materials and supplies utilized across all City departments. Through the Omnia Partners contract, the City also gains access to a no-cost Home Depot Pro account, with an online portal that allows departmental staff to easily prepare quote documents, verify stock locations, access past purchases, obtain copies of receipts, invoices, and other financial documents, and much more. This process has proven to be quick, convenient, and cost effective.
Due to increases in demand and additional need for materials for City work, Staff are now requesting the City Council authorize a new threshold of $400,000 per fiscal year through the original approved term ending December 31, 2026 for authorized purchases made to Home Depot and covered under the referenced cooperative agreement.
V. FISCAL IMPACT
Funds for this request are budgeted within the adopted FY 2023/24 budget within the respective departments, as required.
VI. EXHIBITS
1. Contract No. 16154 - Amendment 1 (pgs. 4-40)
1.
Prepared by: William Jefferson, Finance Director and Josilla Togiola, Purchasing Manager