Report to Mayor and City Council
Tuesday, February 16, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVING A COOPERATIVE PURCHASING AGREEMENT WITH AMAZON BUSINESS FOR SUPPLIES AND EQUIPMENT IN NOT TO EXCEED AMOUNT OF $40,000 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. Omnia Partners, Public Sector (“Omnia Partners”) awarded contract no.MA3457 to Amazon Business for online marketplace services and easy-access to business-relevant products, supplies and products required by our City departments. Staff is recommending approving the use of Omnia Partners’ cooperative purchasing agreement with Amazon Business for an amount not to exceed $40,000 per fiscal year.
II. RECOMMENDATION
Recommendation
TAKE the following action:
1. WAIVE the formal bidding procedures as defined by the Carson Municipal Code, Chapter 6, Section 2610, as allowed by Section 2611 (g)
2. AUTHORIZE the City of Carson to utilize a Cooperative Purchasing Agency, Omnia Partners, as allowed by Section 2611 (g) and award of purchase orders for materials, supplies and equipment from Amazon Business for the period February 17, 2021 to May 5, 2025 for an amount not-to-exceed $40,000 per fiscal year.
Body
III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
Amazon Business is an online marketplace that delivers local governments and public agencies cost-savings solutions that simplify procurement and help drive compliance with purchasing requirements. Amazon Business allows flexibility, selection and convenience for expedient delivery of supplies and equipment such as IT products, breakroom products, office supplies, janitorial and sanitation supplies, maintenance, repair and operations supplies and recreation supplies. The City receives certain sales tax revenues from online transactions. The state allocates revenue to the city that serves 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 Omnia Partners.
Since March of 2020, Amazon Business has been an integral vendor in the delivery of Personal Protective Equipment (such as disposable gloves, coveralls and respirators for the protection of staff) and Information Technology equipment (such as webcam and microphones for work from home and remote learning at parks) amid the COVID-19 pandemic.
The recommendations in this report are in accordance with the City’s Purchasing Code Section 2611 (g), 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 Omnia Partners through the Request for Proposals: RFP No. MG20-81dated on January 13, 2020. The State of Utah as the Principal Procurement Agency partnered with Omnia Partners to establish a master agreement for the solicitation to be available to other public agencies nationally, including state and local governmental entities, through a five-year agreement from September 9, 2020 through May 5, 2025.
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. MG20-81 (pages 4 - 40)
2. Contract No. MA3457 (pages 41 - 52)
3. Evaluation Documentation (pages 53 - 55)
1.
Prepared by: Sander Huang, Purchasing Manager & Tarik Rahmani, Finance Director