REPORT TO COUNCIL
SUBJECT
Title
Delegation of Contract Award Authority to the City Manager for the Purchase of Citywide Office Supplies
Report
REPORT IN BRIEF
Approval is requested to delegate authority to the City Manager to establish contracts for citywide office supplies at amounts greater than $100,000, if necessary and as further explained below. Staff recommends this approach due to the consolidation of the largest nationwide suppliers OfficeMax/Office Depot/Staples, service declines with the current provider (Office Depot), and increasing market competiveness and options with other suppliers.
EXISTING POLICY
Per Chapter 2.08 of the Sunnyvale Municipal Code, Council approval is required to award contracts greater than $100,000 and/or to delegate authority to the City Manager for such purpose.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Over the past several years, the City has utilized a series of cooperative procurement contracts with OfficeMax to purchase citywide office supplies, allowing the City to leverage discounts typically offered only to high volume purchasers. Key advantages have included discounted pricing, electronic commerce incentives, next day desktop delivery and annual cash rebates. The City spends approximately $220,000 per year under this contract.
In 2013, Office Depot acquired OfficeMax. Since that time, the City has experienced a decline in both service and advantageous pricing. The next day desktop delivery process has been inconsistent, sometimes taking up to four days for products to be delivered. Additionally, staff has been able to find the same product cheaper through other vendors. To further complicate matters, Staples is now poised to merge with Office Depot amid antitrust concerns. While the Federal Trade Commission has expressed concern over the effect of the merger on physical locations, the primary focus is on how a combined mega-office supply store could restrict competition when it com...
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