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HomeMy WebLinkAboutItem 04 - Office SuppliesSTEM # MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGERI� �l �� MEETING DATE: JANUARY 4, 2011 SUBJECT: APPROVAL OF A RESOLUTION TO ESTABLISH AN ANNUAL CONTRACT FOR OFFICE SUPPLIES THROUGH AN ESTABLISHED INTERLOCAL AGREEMENT WITH THE COOPERATIVE PURCHASING NETWORK RECOMMENDATION: City Council to consider a resolution to establish an annual contract with Office Depot for office supplies on an as- needed basis through an interlocal agreement with the Cooperative Purchasing Network. Expenditures under this contract will be limited to each departments budgeted amount under general fund. FUNDING SOURCE: Funds are available in various citywide department accounts within all operational funds at an estimated cost of $150,000. BACKGROUND: Authority for such services is granted under Government Code, Title 7, Chapter 791 Interlocal Cooperation Contracts, Subchapter B and Subchapter C, and Local Government Code, Title 8, Chapter 271, Subchapter F, Section 271.101 and Section 271.102. This contract will be established under an interlocal agreement with the Cooperative Purchasing Network (TCPN). Council approved participation in the cooperative on May 16, 2000. TCPN has an established a contract under contract number R5023 with Office Depot for office supplies. The current contract will expire February 28, 2015. The current contract that the City of Grapevine has through Office Depot with national cooperative group U.S. Communities expires the first week of January 2011. US Communities negotiated a new contract with Independent Stationers under contract # MA- IS- 1140050. Staff evaluated both contracts and concluded that Office Depot would serve the city's office supply needs at the lowest total cost. Staff recommends approval of a resolution to establish an annual contract with Office Depot for office supplies on an as- needed basis through an interlocal agreement with The Cooperative Purchasing Network. December 28, 2010 (2:10PM) Office Supply Contract Review and Analysis 12 -21 -10 The contract with Office Depot we utilize through US Communities expires the first week in January. US Communities negotiated a new contract with Independent Stationers. Contract #MA -IS- 1140050 Office Depot has negotiated a new contract with National Intergovernmental Purchasing Alliance and The Cooperative Purchasing Network (TCPN) contract # R5023. EVALUATION OF BOTH NEW CONTRACTS Estimated yearly spend for office supplies is $150,000. Location: The nearest Independent Stationers dealer is in Irving Office Depot store is located in Grapevine Location is important because over 15% of the purchases are made at the store. Volume Rebate: The current level of spend will get us a 1 % rebate with Office Depot and 0% with Independent Stationers. E- commerce Rebate: Both offer the same .5% to 1% rebate. Note: we need to increase our online buying to 80% of purchases to get the 1 %. We are at 72% now. Core Item Pricing: Of all the hundreds of items we would purchase, the pricing, which includes all discounts, appear to be competitive on all contract offers. Delivery: Both will deliver most items next day at no additional charge. Cost of Change: If we were to change vendors the City would incur a one time cost to bring a new vendor online. Cost is calculated on man -hours for training, loading all accounts and P -card information and for IT to change the online ordering software_ Average fully burdened labor rate estimate: $45A0/hour Training: 120 hrs User set up: 20 hrs IT loading of software and integration: 8 hrs Total: 148 hrs Total cost of change- $45.00 x 148 hours = $6660.00 Final Recommendation: There were multiple vendors awarded this contract #85023. In order to receive all discounts offered, the City needs to consolidate the purchases with one vendor. Based on the above analysis and Office Depots' past performance the Purchasing Department recommends that we utilize The Cooperative Purchasing Network (TCPN) contract # R5023 with Office Depot. We believe this contract will serve the City's office supply needs at the lowest total cost. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNATE TO PURCHASE OFFICE SUPPLIES THROUGH AN ESTABLISHED INTERLOCAL AGREEMENT AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas is a local government in the State of Texas and as such is empowered by the Texas Local Government Code, Section 271.102 to enter into a cooperative purchasing program agreement with other qualified entities in the State of Texas; and WHEREAS, The Cooperative Purchasing Network (TCPN) is a qualified purchasing cooperative program as authorized by Section 271.102 of the Texas Local Government Code; and WHEREAS, the City of Grapevine, Texas, has established an Intedocal Agreement with The Cooperative Purchasing Network (TCPN) and wishes to utilize established contracts meeting all State of Texas bidding requirements; and WHEREAS, The Cooperative Purchasing Network (TCPN) has established a contract with Office Depot, for office supplies; NOW, THEREFORE; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the above preamble are true and correct and are incorporated herein as if copied in their entirety. Section 2. That the City Council of the City of Grapevine authorizes the purchase of office supplies from Office Depot on an as needed basis to be limited to each department's budgeted amount under general fund. Section 3. That the City Manager, or his designee, is authorized to take all steps necessary to consummate the purchase of said equipment. Section 4. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 4th day of January, 2011. APPROVED: ATTEST: APPROVED AS TO FORM: RES. NO.