REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing One (1) Year Blanket Purchase Agreement with W.W. Grainger, Inc., in the Amount of $150,000 for a new Total Not-to-Exceed Amount of $400,000, and to Extend the Term of the Purchase Agreement Through December 31, 2024, for the Purchase of Industrial and Commercial Supplies (F25-049)
Report
REPORT IN BRIEF
Approval is requested to amend an existing one (1) year Blanket Purchase Agreement with W.W. Grainger, Inc. of West Sacramento to increase the contract amount by $150,000 to a new, not-to-exceed amount of $400,000, and to extend the term through December 31, 2024, in alignment with the State of California Participating Addendum No. 7-18-51-02 under the NASPO ValuePoint Master Agreement #8496, for industrial and commercial supplies.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), City Council approval is required for contracts for the procurement of goods and services exceeding $250,000 in any one transaction.
Further, Section 2.08.220(b) of the Sunnyvale Municipal Code authorizes the purchasing officer to direct the city’s participation with one or more governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
W.W. Grainger, Inc. (“Grainger”) has supplied the City of Sunnyvale with various industrial and commercial items, such as lighting, restroom fixtures, and tool attachments since 2005. Grainger and the National Association of State Procurement Officials (“NASPO”) are parties to a cooperative procurement, NASPO ValuePoint Master Agreement #8496 (Attachment 2), which offers public agencies, such as the City, the ability to leverage larger discounts typically offered to high-volume purchasers. NASPO is currently in the process of negotiating a new cooperative agreement with Grainger, which is expected to be finalized by the end of 2024.
Grainger and the State of California, a participant of NASPO, have executed a participating addendum, a bilateral agreement which incorporates the NASPO Master Agreement #8496. More recently, Grainger and the state have executed State of California Participating Addendum No. 7-18-51-02, Amendment 7 (“Amendment 7”), which extends the term of the State of California’s Participating Addendum through December 31, 2024 (Attachment 1).
The City has an existing one-year blanket purchase agreement with Grainger pursuant to the NASPO ValuePoint Master Agreement and the State of California’s Participating Addendum. Staff is requesting an increase to the current purchase agreement amount and an extension of the term to align with the current NASPO cooperative agreement and Amendment 7. This increase to the purchase agreement amount and extension of the term will allow the City to continue to purchase supplies from Grainger until the new NASPO cooperative agreement is executed.
Should the pricing and terms of this agreement remain favorable to the City, staff intends to seek authorization from the Council at the end of the year to participate in the new NASPO cooperative agreement, in conjunction with the State of California’s Participating Addendum.
FISCAL IMPACT
Budget for these supplies is appropriated and available in various departmental operating programs Citywide.
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 NOVA Workforce Services 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:
- Approve the increase of $150,000 to the current Blanket Purchase Agreement with Grainger for a new, not-to-exceed amount of $400,000, and extend the term of the purchase agreement through December 31, 2024;
- Authorize the City Manager to execute the amended Blanket Purchase Agreement when all necessary conditions have been met; and
- Authorize the City Manager to increase the compensation up to the budgeted amounts and if pricing remains favorable 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 $250 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
A check or “Y” 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
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_x_ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. State of California Participating Addendum Number 7-18-51-02, Amendment 7
2. NASPO ValuePoint Master Agreement #8496