CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #2 to Contract 23-296, Office Supplies, Operating Supplies and Small Equipment, to Amazon for an amount not to exceed $200,000 and a total award of $409,999
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In July 2025, the City Council approved the award of cooperative Contract 23-296, General Supplies and Equipment, to Amazon for $200,000 for an 18-month term through January 31, 2027.
The City maintains a contract with Amazon for office supplies, operating supplies, and small equipment. All City departments use the Amazon contract when it is the most cost-effective source or when goods are not available from other sources.
DISCUSSION:
During a Finance Department review of the contract, staff noted that the contract balance was nearly exhausted with eight months left in the term. An analysis of contract spending shows increased utilization across multiple categories, including public safety supplies and equipment, automotive parts, and technology equipment.
On May 1, 2026, the City Manager approved Change Order #1 for $9,999 to pay pending invoices on previously purchased items.
This Change Order provides an additional $200,000 for the remainder of the contract term, for a not to exceed total amount of $409,999. If the Change Order were not approved, departments would purchase supplies and equipment through other vendors, potentially at higher costs.
FISCAL IMPACT:
CIP #: N/A
Items purchased through Amazon are allocated to various accounts depending on the department and type of item purchased. Each department maintains various supply accounts, which are monitored throughout the year to ensure purchases made through this agreement do not exceed the approved budget. Although the use of this contract has expanded, it is offset by reduced spending through other vendors.