REPORT TO COUNCIL
SUBJECT
Title
Modify an Existing Citywide Purchase Agreement with Amazon Capital Services, Inc. for Miscellaneous Purchases, Increasing the Amount from $250,000 to a new Not-to-Exceed Amount of $700,000 (F26-405).
Report
REPORT IN BRIEF
Approval is requested to amend the existing Purchase Agreement with Amazon Capital Services, Inc., Seattle, Washington, for the purchase of miscellaneous supplies supporting City operations. The amendment would increase the not-to-exceed amount by $450,000, for a revised total not-to-exceed amount of $700,000.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
Further, SMC section 2.08.220(b) authorizes the Purchasing Officer to participate in a cooperative agreement for the procurement of goods and/or services publicly solicited by another governmental, public or quasi-public entity.
ENVIRONMENTAL REVIEW
The proposed action is not a “project” as defined by the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(2) of the State CEQA Guidelines as it involves a general administrative activity of government that will not result in a direct or indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City of Sunnyvale routinely purchases a wide range of miscellaneous supplies to support daily operations across departments. These purchases include office supplies, books, art and educational materials, small technology items, and other operational materials required for City programs and services. Due to the high volume and variety of these purchases, staff identified the need for an efficient and flexible purchasing method that would allow departments to obtain commonly used items quickly while maintaining compliance with the City’s procurement requirements.
On September 1, 2019, the Purchasing Division established a citywide Purchase Agreement with Amazon Capital Services, Inc. (Amazon Business) to streamline the procurement of miscellaneous supplies. Amazon Business provides a centralized online marketplace that allows departments to purchase commonly used items from multiple vendors in a single platform. The platform enables departments to compare pricing across multiple sellers, access business-only pricing, and take advantage of shipping efficiencies, thereby reducing the administrative effort associated with sourcing and purchasing lower-dollar goods.
The City’s agreement with Amazon Business uses a cooperative purchasing contract available through OMNIA Partners (formerly U.S. Communities), a nationally recognized public-sector cooperative purchasing organization. Cooperative purchasing contracts allow public agencies to utilize competitively solicited contracts awarded by another governmental entity, thereby satisfying the City’s competitive procurement requirements while reducing the administrative time and costs associated with conducting a separate solicitation.
The cooperative contract used by the City, OMNIA Partners Contract No. R-TC-17006, was competitively solicited and awarded by Prince William County Public Schools in Virginia on January 19, 2017. The contract provides public agencies access to Amazon Business for the purchase of a wide variety of supplies through a competitively awarded agreement. The contract is currently in its third and final renewal term and is scheduled to expire on January 18, 2028.
Since the City’s Purchase Agreement with Amazon Business was established in 2019, departments have increasingly used Amazon Business to efficiently procure operational supplies. The platform has proven to be an effective procurement tool because it offers competitive pricing, reduces staff time spent on product and vendor research, and simplifies routine supply purchases. Departments can compare products, identify the best value, and place orders quickly, improving operational efficiency while maintaining appropriate purchasing controls.
In addition, as part of the City’s transition to the Amazon Business platform, the Purchasing Division began utilizing a spend-based rebate program available through Amazon Business in 2024. Under this arrangement, the City receives a rebate based on annual purchasing volume, providing a financial return on eligible purchases made through the platform. This rebate further enhances the value of the agreement by generating cost savings while maintaining an efficient and flexible purchasing method for departments.
Due to the continued use of this purchasing method across multiple departments, expenditures under the Purchase Agreement are approaching the current authorized contract limit. Increasing the not-to-exceed amount will allow departments to continue using this cooperative purchasing agreement for operational supply purchases through the remainder of the OMNIA cooperative contract.
FISCAL IMPACT
Available budget for supplies and items purchased from Amazon Business is appropriated in various citywide Programs and Projects.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Modify an existing Purchase Agreement with Amazon Capital Services, Inc., of Seattle, Washington, for the purchase of miscellaneous supplies, increasing the not-to-exceed amount by $450,000 to a new not-to-exceed amount of $700,000; and
- Authorize the City Manager to amend the Purchase Agreement amounts, subject to available budget, if pricing and service remain acceptable to the City.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Omnia Contract Amazon R-TC-17006