CHIEF PROCUREMENT OFFICER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 19-303, Office Supplies, to add Staples as an approved vendor.
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BACKGROUND:
The City has historically maintained an office supply contract with one vendor. This contract is used by all City departments to purchase general office supplies for City operations. Orders are placed by individual departments via the internet or phone and delivery is made to the requesting location. It should be noted the office supply contract excludes technology-related items and copy paper, which are purchased through the IT Department, and office furniture, which is purchased through the Department of Public Works.
November 2019, the City Council approved the award of Contract 19-303 to Office Depot for the purchase of office supplies. The Office Depot contract is through Omnia Partner Cooperative Contract #19-12R and the term is two years from December 1, 2019 through November 30, 2021.
Since awarding the contract to Office Depot, the Finance Department decided to evaluate whether an additional office supply vendor should be added as an approved supplier in order to improve customer service and reduce costs. Finance contacted the department office supply liaisons and found that they were having issues such as a lack of responsiveness to staff inquiries and billing issues. When the City was assigned a new account manager, Finance had hoped these issues would be resolved, but they have not. In addition, staff has found that the office supply selection can be limited and cost more than other suppliers. When asked if they would support adding second office supply vendor, the department office supply liaisons were in agreement.
DISCUSSION:
Finance staff recommends approving a change order to add Staples as a second approved office supply vendor on Contract 19-303. Staples will price match their office supply competitors (excluding Amazon), provide a 3% rebate on orders over $250 and has 24/7 customer support. In addition, the City’s account manager will be local, which will hopefully address the responsiveness issues. The total authorized amount of the Office Supply contract will not increase. Instead, $45,000 of the original allocation will be re-allocated to Staples.
Staples is an approved contracted vendor through the Source Well cooperative contract, Number 012320-SCC. Over the next year, Finance will work with the department office supply liaisons to evaluate the Staples and Office Depot cooperative contracts to determine if we should award the next office supply contract to one or multiple office supply vendors.
Contract term will be from date of award through November 20, 2021.
FISCAL IMPACT:
CIP #: N/A
Each city department maintains an office supplies expense account and charges items as needed through this contract. A total of $124,625 is budgeted for office supplies throughout the City in 2021.