CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 21-213, General Supplies and Equipment, to Amazon for an amount not to exceed $200,000 and for an 18-month term
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BACKGROUND:
The City maintains various general supply and equipment contracts, which are used by all City departments to support operations. Examples include Office Depot and Staples for office supplies, Grainger for janitorial supplies, and Murnane Paper Company for copy paper. Depending on the type of supply or equipment, the City will either issue a formal bid or purchase through an approved cooperative contract. Through various spend analyses performed over the years, leveraging cooperative purchasing contracts, particularly for generalized equipment, parts and supplies, has proven to be a significant value to the City in both pricing and operational efficiency.
Historically, Amazon purchases have been made on an as-needed basis by authorized department staff using City procurement cards ("P-Cards"). Purchases made are below the small purchase threshold of $1,000 and the cumulative annual spend was, historically, below $100,000. However, in 2019, as Amazon's business presence within the public sector increased as did the City's annual spend with the company. Largely driven by the pandemic, in 2020, spend increased to $159,265.
Year
Annual Amazon Spend
2016
$ 68,027
2017
$ 56,771
2018
$ 98,929
2019
$ 109,228
2020
$ 159,265
2021 (YTD)
$ 65,963
While each individual purchase is below the small dollar threshold, given the cumulative annual spend, staff is recommending the City issue a formal contract with traditional invoicing terms. The action will improve data tracking capabilities and better control department spend.
DISCUSSION:
In February 2021, Finance Department staff identified and consolidated all active Amazon accounts into one centralized City account and transit...
Click here for full text