Report to Mayor and City Council
Tuesday, December 06, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL TO AMEND THE BLANKET PURCHASE ORDER FOR CRAFCO INCORPORATED, INCREASING THE AMOUNT TO $105,000
Body
I. SUMMARY
City Council approval is requested to authorize the Purchasing Department to appropriate additional funds to the blanket purchase order agreement for Crafco Incorporated (“Crafco”). The City has a current blanket purchase order with Crafco totaling $24,999 for the purchase of rubberized pavement materials obtained by way of a Sourcewell cooperative purchasing program and needs to increase the amount by an additional $80,001, which will exceed the City Manager’s expenditure authority of $25,000. The new total would be $105,000.
With the purchase of new equipment, the Right of Way crews has completed significantly more pavement work, necessitating additional pavement-related purchases to complete the year.
Public Works is requesting the City Council to amend the existing purchase order of Crafco to allow City staff to continue the maintenance and preservation of the City’s streets.
II. RECOMMENDATION
Recommendation
AUTHORIZE the Purchasing Division to amend PO #22300441 for Crafco Incorporated for an amount not to exceed $105,000.
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III. ALTERNATIVES
1. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
Section 2611(g) of the City’s Municipal Code (“CMC”) allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, even if the contracts and implementing agreements entered into by the participating entity or association under those cooperative purchasing programs were not entered into pursuant to a process that resulted in the contract being awarded to the lowest responsible and responsive bidder under CMC 2610(i); 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 years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing. The City Council has made a determination that the benefits to City of utilizing cooperative purchasing outweigh any incremental higher price that may be paid by City in certain instances as a result of not soliciting directly utilizing the lowest responsible and responsive bidder standard under CMC 2610(i).
Sourcewell is a cooperative purchasing agency established to allow participating municipal agencies to reduce the cost of procurement by leveraging the benefits of contract purchasing. Through solicitations, Sourcewell contracts bring considerable value and efficiencies to members through nationally leveraged contracted suppliers with access to the highest quality products and brands. Each solicitation and RFP contain language, which includes all qualified customers in all fifty states. Sourcewell contract purchasing solutions are reviewed by the Sourcewell Board of Directors and awarded on the members' behalf. The City of Carson (ID# 38521) is a member of Sourcewell. All purchases of the items listed below are proposed to be purchased through Sourcewell.
Crafco Incorporated
The City maintains approximately 203 lane-miles of pavement, which requires routine maintenance and repair and sometimes total replacement. Crafco is an authorized Sourcewell vendor procured by Sourcewell through its competitive solicitation process, and provides rubberized materials used for the preservation and maintenance of City streets. A Crafco cooperative purchasing quote was received in June 2022 and Crafco was awarded a purchase order totaling $24,999. An amendment of the purchase order for an additional $80,001 is needed to continue street maintenance through FY 2022/2023. Under the City’s Purchasing Ordinance, Section 2606, any expenditures totaling over $25,000 require City Council approval.
It should also be noted that Section 2605(b) of the CMC requires City to enter a contract for purchases of any personal property, including materials, supplies, and equipment, of $25,000 or more over a fiscal year, unless the City Manager (as Purchasing Manager) waives this requirement. The City Manager has waived such contract requirement for each of the purchases described in this report.
V. FISCAL IMPACT
None. The funding requested for this increase in the Purchase Order was included in account 101-80-840-280-6009 for Crafco.
VI. EXHIBITS
1. Sourcewell - Crafco Contract (pgs. 4-33)
Prepared by: Veronica Rodriguez, Right of Way Superintendent