Report to Mayor and City Council
Tuesday, August 18, 2020
Consent
SUBJECT:
Title
CONSIDER APPROVING A COOPERATIVE PURCHASING AGREEMENT WITH STAPLES ADVANTAGE FOR OFFICE EQUIPMENT, WORKPLACE-RELATED SUPPLIES AND JANITORIAL PRODUCTS IN NOT TO EXCEED AMOUNT OF $200,000 PER YEAR (CITY COUNCIL)
Body
I. SUMMARY
City department’s use competitively solicited cooperative agreements by other government jurisdictions or public agencies to maximize cost savings and efficiently use staff resources when purchasing goods and services. Sourcewell, a State of Minnesota local government agency, awarded two contracts to Staples LLC: Contract No. 012320-SCC for office supplies; Contract No. 110415-SCC for janitorial supplies and related custodial products. These two contracts are available to the City of Carson to be used as cooperative purchasing agreements. Staples Contract & Commercial LLC provides office equipment, supplies and custodial products required by our City departments. Staff is recommending approving the use of Sourcewell's cooperative purchasing agreements with Staples LLC for an amount not to exceed $200,000 per fiscal year.
II. RECOMMENDATION
Recommendation
TAKE the following action:
1. WAIVE the formal bidding procedures as defined by the Carson Municipal Code, Section 2610, as allowed by Section 2611 (g).
2. AUTHORIZE the City of Carson to utilize a Cooperative Purchasing Agency, Sourcewell, as allowed by Section 2611 (g) and issue purchase orders for an amount not-to-exceed $200,000.
3. APPROVE the award of term purchase order contract for office and janitorial supplies to Staples for the period beginning August 18, 2020 to April 06, 2025, for not-to-exceed amount of $200,000 per fiscal year.
Body
III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
Staples Contract & Commercial LLC has been the City of Carson’s primary vendor for office equipment, office supplies and custodial products on an as-needed basis through will call and online ordering. The Staples online portal allows departmental staff to create a quote or an item list and save the list through the internet. The Finance department purchasing team accesses the online portal, adds items to the cart, and completes the purchase. This process has proven to be efficient, convenient, and cost effective. The City receives sales tax revenues from online transactions. The state allocates this revenue to the city that served as the place of sale in the transaction.
To maximize cost savings and staff resources, many governmental jurisdictions or public agencies combine their contracting efforts through cooperative purchase agreements, which increase pricing competitiveness and lowers operating costs through significant volume discounts. When comparing the administrative costs required, such as product research, vendor research, advertising, awarding and creating the contract, it is more cost effective to make purchases through a cooperative purchase agreement. The pricing terms and conditions for this agreement were determined through a competitive solicitation conducted by Sourcewell.
The recommendations in this report are in accordance with the City Purchasing Code Section 2611 which authorizes City departments, when it is advantageous to the City, to use cooperative purchasing agreements approved by the City Council to purchase supplies through legal contracts of other governmental jurisdictions or public agencies, eliminating the need to perform additional competitive bidding by the City of Carson.
This Cooperative Purchasing Agreement was created, competitively bid, evaluated, and awarded by Sourcewell through the following Request for Proposals: RFP No. 012320 dated on January 23, 2020 (Office Supply Catalog Solutions) and RFP No. 110415 dated November 5, 2015 (Janitorial Supplies).
• Office Supply Catalog Solutions No. 12320-SCC: Contract Term August 01, 2020 to April 06, 2025 (including the one-year optional extension).
• Janitorial Supplies and Related Custodial Products No. 110415-SCC: Maturity Date February 01, 2021.
The Cooperative Purchasing Agreement will allow the City of Carson to:
• Meet the requirements for competitive solicitation
• Eliminating the need for RFPs, making it easier and faster to receive needed supplies
• Gain access to thousands of products for same day purchasing, including all in-stock items at the Staples store located within the City of Carson, including special order items.
V. FISCAL IMPACT
Funds requested for the use of this cooperative agreement are already included in the Fiscal Year 2020-2021 adopted budget. Departments will use their own funding to purchase these products as required.
VI. EXHIBITS
1. RFP No. 102320 (Office Supplies)
2. Contract No. 012320-SCC (Office Supplies)
3. Evaluation Committee Comment & Review (Office Supplies)
4. RFP No. 110415 (Janitorial Supplies)
5. Contract No. 110415-SCC (Janitorial Supplies)
6. Evaluation Committee Comment & Review (Janitorial Supplies)
Prepared by: Sander Huang, Purchasing Manager