CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 21-213, General Supplies and Equipment, to Amazon for an amount not to exceed $100,000 and a total award of $300,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BACKGROUND:
The City maintains various general supply and equipment contracts, which are used by all departments to support operations. In February 2021, Finance Department staff identified and consolidated all active Amazon accounts into one centralized City account and transitioned each department from using individual P-Cards to traditional invoicing.
On June 15, 2021, the City Council awarded Contract 21-213, General Supplies and Equipment, to Amazon for $200,000. The purpose of the contract was to augment existing contracting options and provide value to the City, particularly when selection and convenience is a priority. In addition, a contract was setup in anticipation for expanded use of Amazon so that expenditures could be better tracked and analyzed.
DISCUSSION:
This change order is requested to add $100,000 to the authorized contract amount. The original award request was an estimate based on historical data. The City's historical Amazon spend is as follows:
Year
Annual Amazon Spend
2018
$98,929
2019
$109,228
2020
$159,265
2021
$152,230
2022 YTD
$106,345
Amazon spend is primarily accounted for within the City's Operating Supplies account. While YTD spend within this account is within budget, further analysis shows a shift in spending. Specifically, a reduction in spend with other vendors historically used for operating supplies. Compared to this time last year, staff has seen a 48% reduction in spend with Menards, 17% reduction with Home Depot and 49% reduction with Uline, Inc. These reductions account for the additional spend with Amazon.
As a reminder, all Amazon purchases made by the City are in accordance with the Omnia Partners Cooperative, Co...
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