REPORT TO COUNCIL
SUBJECT
Title
Authorize Modification of an Existing Contract for Commonly Used Office Supplies (F15-27)
Report
REPORT IN BRIEF
Approval is requested to modify an existing contract with OfficeMax of Menlo Park to provide citywide office supplies by extending the contract through the end of FY 2014/15, not-to-exceed budgeted amounts. The most commonly used office supplies include several types of toner cartridges, pens, markers, tape, staples, envelopes, note pads, copy paper and file folders.
BACKGROUND AND DISCUSSION
Since 2006, the City has purchased office supplies from OfficeMax through a national procurement cooperative (Public Sourcing Solutions, a non-profit organization) in partnership with Oakland County, Michigan. This type of "piggybacking" arrangement is allowable under Section 2.08.220(b) of the Sunnyvale Municipal Code. Several cities in the area, including San Jose, Mountain View and Palo Alto, have utilized the same cooperative agreement. Procuring supplies in this fashion allows local jurisdictions to leverage deep discounts typically offered to high volume purchasers.
The current citywide contract, awarded by Council in 2011 (RTC No. 11-136), expired May 31, 2014. A short-term contract in the amount of $90,000 was issued under the City Manager's award authority in order for Purchasing staff to determine market competitiveness, but work has not commenced due to workload demands. Therefore staff recommends extending the contract through the end of this fiscal year to allow sufficient time to complete a thorough analysis and determine the most advantageous path forward. This could include continuing with the current vendor under the same arrangement, selecting a different vendor, or contracting with multiple vendors.
ENVIRONMENTAL REVIEW
N/A
FISCAL IMPACT
Funds for office supply purchases are budgeted in various operating accounts throughout the City. Annual expenses fluctuate from year-to-year, but are typically in the range of $225,000 to $250,000. Expenses through the end of FY 2014/15 are not expected to exceed $250,000.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the extension of an existing contract with OfficeMax though June 30, 2015, not to exceed budgeted amounts, in substantially the same form as the draft blanket purchase order attached to the report.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Department of Finance
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Draft Blanket Purchase Order