CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 23-296, Office Supplies, Operating Supplies and Small Equipment, to Amazon for an amount not to exceed $200,000 and for a 19-month term
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City maintains a contract with Amazon for office supplies, operating supplies and small equipment. Spend analyses conducted over the past few years have found cooperatives provide competitive pricing compared to bidding for office supplies, operating supplies and small equipment because the City can take advantage of the economies of scale gained from collective purchasing.
The City purchases office supplies, operating supplies and small equipment with the Amazon cooperative contract. Departments use the Amazon contract for supplies when the item is cheaper at Amazon or not available from other cooperative sources. To date in 2025, the City has made 906 purchases at Amazon, amounting to $149,793.44, or $7,783 per month. Purchases ranged from $3.87 to $10,234.15, with an average purchase of $273.19.
The top spending categories with Amazon in 2025 are:
• IT telecommunications: $54,904
• Power generation and machinery accessories: $21,512
• Office supplies, equipment and accessories: $21,343
• Defense and Law Enforcement Safety Supplies: $20,012
• Cleaning Equipment and Supplies: $18,606
• Vehicle parts, accessories and components: $17,346
DISCUSSION:
The current term of the City’s Amazon contract ends July 31, 2025. Staff recommends that the contract be for 19 months to coincide with the City’s Amazon Business Prime renewal date.
Staff has identified an approved cooperative contract, Omnia Partners Cooperative Contract R-TC-17006, through Amazon, for the procurement of office supplies, operating supplies and small equipment.
Based upon previous spending, staff recommends an award of $200,000 for the 19-month term, which equates to approximately $9,473 per month. This reflects a decrease of $219,029 in comparison to 2024.
The term of the contract is from August 1, 2025, to January 31, 2027.
FISCAL IMPACT:
CIP#: N/A
Items purchased through Amazon will be allocated to various accounts depending on the department and type of item purchased. Each department maintains various supply accounts, which will be monitored throughout the year to ensure purchases made through this agreement do not exceed the approved budget.