REPORT TO COUNCIL
SUBJECT
Title
Authorize an Amendment to an Existing Purchase Order for Library Printed Materials (F14-11)
Report
REPORT IN BRIEF
Approval is requested to amend an existing purchase order with Ingram Library Services, Inc. of LaVergne, TN, for the purchase of adult and juvenile printed materials and pre-processing services for the Library, extending the expiration date from November 30, 2018 to June 30, 2019.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and services exceeding $100,000 in any one transaction. Consistent with Section 2.08.070(b)(6) of the Municipal Code, public library collection materials or services for the provision of public library collection materials or other books or periodicals are exempt from competitive bidding requirements.
ENVIRONMENTAL REVIEW
The purchase of supplies does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect changes in the environment.
BACKGROUND AND DISCUSSION
The Library has procured printed materials under delegated purchasing authority from the City Manager since 2000, consistent with Section 2.08.050 of the Sunnyvale Municipal Code. Since that time, the Library has purchased collections material from Ingram and several other smaller suppliers under the competitive bidding exemption provided in the Sunnyvale Municipal Code.
A past Library audit recommended competitively bidding these materials in order to evaluate pricing and services offered by other vendors. To explore that possibility, a Request for Proposal (RFP) process was conducted between August 2013 and October 2013, which resulted in the selection of Ingram Library Services, Inc. as the selected vendor (RTC No. 13-273).
Proposals were evaluated for the ability to meet materials and services requirements, qualifications and experience, and proposed pricing structure (which included an array of unit-based options as opposed to a total proposed amount). Ingram was rated highest in the materials and services requirements and qualifications categories. Subsequent negotiation resulted in higher discounts and lower pre-processing costs from Ingram, comparable to the other proposers.
Currently, the purchase order with Ingram expires on November 30, 2018. In order to continue compliance with the past audit recommendations, the City intends to conduct an RFP to evaluate the vendors to determine who will provide the best value for these products and services. To allow for the appropriate time to complete this process staff is requesting a 7-month extension on the term of the current purchase order to June 30, 2019. The City intends to award a new contract at the conclusion of the RFP process.
FISCAL IMPACT
The Library typically spends between $275,000 and $350,000 annually on printed materials and processing services provided by Ingram.
Funding Source
Funds are available in the Library & Community Services operating program 620
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 City Manager to amend the existing purchase order with Ingram Library Services, Inc., in substantially the same format as Attachment 1, extending the expiration date to June 30, 2019.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Cynthia Bojorquez, Director of Library & Community Services
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Blanket Purchase Order