CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 24-037, Electric Utility Supplies, to Wesco Distribution Inc. for an amount not to exceed $600,000 and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Naperville Electric Utility (Utility) is responsible for maintaining and expanding the electric grid in the city as well as purchasing and distributing power to commercial and residential customers. To meet this responsibility, an effective means of obtaining necessary material, services and supplies is critical. The Utility uses all means approved by the City Procurement department to identify sources for its purchases from formal bids to vendor quotes, to RFP’s, and contracts. For smaller purchases, cooperative contracts are a less time-consuming approved method to obtain material, supplies and services.
The Utility purchases numerous items on a regular basis, for example steel clamps, PVC elbows, wire, locator flags and paint, electrical tape and safety vests and purchases these items from the Sourcewell Cooperative Contract pricing through Wesco. Wesco has the resources to locate and provide in a timely manner, a wide range of material needed to maintain the City’s electric grid.
In 2023, the Procurement Division sought to track small purchases under $25,000 sourced under the Sourcewell Cooperative contract with Wesco, to determine the best method for departments to utilize the contract moving forward. From March 2023 through November 2023, the Utility issued more than 60 purchase orders to Wesco for material.
DISCUSSION:
For 2024, the Utility has formalized these purchases in a contract. Procurement staff recommends the use of approved cooperative contract, Sourcewell Contract #091422-WES through Wesco Inc. for the procurement of material, supplies and services.
The award amount includes funding for any of the 2,000 plus parts the Utility stores and ultimately uses through its warehouse. The term of award is from January 1, 2024 through December 31, 2024.
FISCAL IMPACT:
CIP#: N/A
Electric Utility supplies are budgeted in the below Operating Supplies account. In 2024, the Utility budgeted $700,000 for supplies that are stored in their warehouse. These items will be initially expensed in the Operating Supplies account listed below; however, as they are used in various capital projects the expenses will be accounted against the proper project. The requested award is within budget for this expense.
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Account Number |
Fund Description |
Total Budget Amount |
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40101300-541407 |
Electric Utility Fund |
$700,000 |
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