CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 21-367, Office Supplies, to Office Depot and Staples for an amount not to exceed $180,000 and for a two-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2018, the City conducted an analysis to determine benefits of a cooperative contract or a bid to purchase office supplies. The analysis showed that a cooperative contract is better because the City does not purchase enough office supplies on its own to obtain the same level of discounts and other benefits that are received via the national cooperatives. The City Council approved the award of a one-year contract with the Office Depot cooperative.
In 2019, the City Council approved a two-year contract with the Office Depot cooperative and in January 2021, the City added Staples as an approved cooperative vendor. Having two office supply vendors provides departments with a larger inventory to choose from and the ability to compare costs, as well as consider delivery options.
Over the last decade, the City has reduced office supply expenses through demand management and reuse efforts. With each vendor, orders are placed by individual departments via the internet or phone and delivery is made to the requesting location. With 24-48-hour free delivery service, City departments can maintain a low inventory of supplies for general use. In addition, staff members are encouraged to purchase off-brand name products to reduce costs. When a department no longer uses a select office product, other departments are notified to see if someone else can use the item. These options keep costs down and help with the City’s sustainability efforts.
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.
DISCUSSION:
The City’s current contracts with Staples and Office Depot end on November 30, 2021. Staff recommends the use of the two approved cooperative contracts, Omni Partners cooperative contract #R190303 through Office Depot and Sourcewell cooperative contract #012320-SCC through Staples. Staff also recommends a reduction in the requested annual award amount from $100,000 in 2019 to $90,000 based upon the historical spend information.
Prior to recommending the new award, staff conducted a spending analysis to determine the recommended award amount. In 2020, the City purchased a total of $62,234.56 in office supplies. This was less than previous years and is likely attributable to staff working from home due to COVID. To date, the City has purchased $65,714.66 in office supplies in 2021.
The term of this contract is two years from December 1, 2021 through November 30, 2023.
FISCAL IMPACT:
CIP: N/A
Each department maintains an office supplies expense account and charges items as needed through this contract. A total of $130,425 has been submitted for office supplies throughout the City for the FY2022, pending Council approval. Future costs will be budgeted appropriately based upon this contract.