REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for the Cooperative Purchase of Industrial and Commercial Supplies (F15-82)
Report
REPORT IN BRIEF
Approval is requested to award a contract, not to exceed budgeted amounts, to Grainger of West Sacramento for the purchase of industrial and commercial supplies as required by the City, and to authorize the City Manager to renew the contract for up to two additional one-year periods if pricing and service remain acceptable to the City.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Grainger has been a preferred provider of industrial and commercial supplies such as lighting, restroom fixtures and supplies, and tool attachments since 2005. Grainger has entered into a cooperative procurement agreement with the State of California as a participant in the Western States Contracting Alliance (WSCA). This agreement offers agencies such as the City to leverage larger discounts typically offered to high-volume purchasers.
Section 2.08.220(b) of the Sunnyvale Municipal Code authorizes the use of a contract initiated by another governmental entity provided that the original parties to the contract agree, the contract was awarded within twelve months of the date of authorization, the contract is for identical or nearly identical goods, and the contract resulted from a competitive bid using methods similar to those required by the City's Purchasing Ordinance. The WSCA contract with Grainger meets these criteria.
FISCAL IMPACT
In recent years these types of supply contracts have been established with not-to-exceed budgeted amounts because it is difficult to predict exactly how many items will be needed throughout the year. Over the past three years, the City has averaged approximately $166,000 in annual expenses on industrial and commercial supplies from Grainger. These expenditures are within amounts budgeted for such supplies in various departments throughout the City.
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
1) Award a one-year contract to Grainger in substantially the same form as the draft blanket purchase order attached to the report and based upon the State of California Western States Contracting Alliance (WSCA) cooperative contract, not to exceed budgeted amounts; and 2) Authorize the City Manager to renew the contract for two additional one-year periods provided that pricing and service remain acceptable to the City.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Draft Blanket Purchase Order