CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 19-303, Office Supplies, to Office Depot for an amount not to exceed $200,000 and for a two-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City maintains an office supply contract, which 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 this 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.
Over the last decade, the City has reduced office supply expenses through demand management and reuse efforts. With next day delivery on the office supply contract, City departments are able to 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 is able to use the item. These options continue to keep costs down. As a result, the recommended annual award has been reduced from $235,000 in 2007 to $125,000 in 2018.
However, the reduced spend impacts the City's ability to obtain competitive pricing as an individual agency. In 2018, the Procurement Team conducted an analysis to determine if the office supply contract should continue to be bid or to transition to a national cooperative contract. Staff evaluated cooperatives with three office supply vendors and recommended use of a cooperative office supply contract in order to achieve better pricing. City Council awarded Contract 18-209 to Office Depot for a one-year term and $125,000 to test the cooperative pricing structure.
DISCUSS...
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