Report to Mayor and City Council
Tuesday, November 17, 2020
Consent
SUBJECT:
Title
APPROVE A THREE-YEAR CONTRACT WITH TWO OPTIONAL ONE-YEAR EXTENSIONS WITH UNIFIRST CORPORATION FOR UNIFORM AND ENTRANCE MAT RENTAL AND CLEANING SERVICES BEGINNING JANUARY 1ST, 2021 (CITY COUNCIL)
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I. SUMMARY
The City uses an outside vendor to provide uniform and entrance mat rental and cleaning. Staff is recommending award of a three-year contract with two one-year options to the lowest responsible bidder, Unifirst Corporation, for uniform and entrance mat rental and cleaning beginning January 1, 2021. This contract will save up to 25% in overall costs as compared to the existing service.
II. RECOMMENDATION
Recommendation
1) Approve the attached agreement with Unifirst Corporation for a three-year term with two one-year options in the amount of $116,413.36 for uniform and entrance mat rental and cleaning services beginning January 1st, 2021.
2) Authorize the Mayor to execute the agreement, following approval as to form by the City Attorney
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3) ALTERNATIVES
1) Direct Staff to not use the cooperative purchasing agreement described in the background section and instead advertise for competitive bids for uniform and mat rental and cleaning services; or
2) Take any other action the City Council deems appropriate.
4) BACKGROUND
Since 2000, the City has had various contracts and purchase order arrangements with Prudential Overall Supply for uniform and mat rental and cleaning services. Currently, Prudential Overall Supply is providing uniforms to the City under a purchase order. On June 17th, 2020 the City executed an agreement with Unifirst Corporation for entrance mat rental and cleaning for a 6-month period ending on December 16th, 2020.
Staff has researched the cooperative purchasing options (discussed below) and has found that depending on the actual mix of usage by the City, overall costs can be reduced by up to 25% with the use of cooperative purchasing through Sourcewell. Sourcewell is a purchasing organization that bids a variety of common vendors and services in a manner that can be used by public agencies. In this case, uniform and entrance mat rental and cleaning was bid and Unifirst was determined to be the lowest responsible bidder.
The uniform rentals will be used by the City’s Public Works and Finance Departments. The Community Services Department intends to purchase instead of rents uniforms. The entrance mat rental services are used by the Public Works Departments in all City facilities.
The City’s Municipal Code, (Article II, Section 2611), allows the City to take advantage of a cooperative purchasing arrangement to obtain bid pricing. The advantage for the City is better pricing due to higher volume competition, and this process avoids the expense and time required of an independent bid process. Even when using this process to determine bid price, the City still needs to execute a specific contract with the lowest responsible bidding vendor.
5) FISCAL IMPACT
The current approved budget includes funding to pay for the full estimated amount of uniform and mat rental services for FY 2020-21 and therefore there will be no fiscal impact with this action. Overall, the City should see a reduction in costs over the next several years by entering into this agreement.
6) EXHIBITS
1.Proposed Contract with Unifirst Corporation (Pgs. 3-35)
Prepared by: Terry Rodrique, President/CEO Interwest Group