Title:
Title
Citywide Purchases from National Intergovernmental Purchasing Alliance, Sourcewell, and US Communities Cooperative Agreements for Various Brands of Furniture [Published for 10-Day Review 05/09/2019]
End
FileID
File ID: 2019-00463
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion: 1) approving the continued use of cooperative purchasing agreement No. P15-150-DT from Omnia for Allsteel, Kimball Office Furniture, National Office Furniture, and Spacesaver for the purchase of furniture, filing systems, and related products and increasing the authorized expenditure amount up to $1 million; 2) approving the continued use of cooperative purchasing agreement No. 031715-STI from Sourcewell for Steelcase furniture and increasing the authorized expenditure amount up to $350,000; and 3) approving the continued use of cooperative purchasing agreement No. 4400003403 from US Communities for Herman Miller Furniture and increasing the authorized expenditure amount up to $550,000.
Contact: Ashley Petralli, Contract and Compliance Specialist, (916) 808-5749, Procurement Services Division, Department of Finance
Body
Presenter: None
Attachments:
01-Description/Analysis
02-Contract: Allsteel
03-Contract Extension: Allsteel
04-Contract: Kimball Office Furniture
05-Contract Extension: Kimball Office Furniture
06-Contract: National Office Furniture
07-Contract Extension: National Office Furniture
08-Contract: Spacesaver
09-Contract Extension: Spacesaver
10-Contract: Steelcase
11-Contract Extension: Steelcase
12-Contract: Herman Miller
13-Contract Extension: Herman Miller
Description/Analysis
Issue Detail: City departments use cooperative purchase agreements to save time and to maximize cost savings to obtain goods and services. Council previously approved the use of three cooperative agreements for the purchase of furniture, filing systems, related products and support services. These cooperative contracts have been extended for additional time periods and are now available for the City’s continued use through 2020. However, the Council did not authorize additional expenditures through these cooperative contracts when they were extended, and as such, purchases have exceeded the amounts previously authorized by Council.
The City has implemented a new platform for bid and contract management, Automated Bids, Contracts, and Digital Signatures (ABCDs), which will better manage not-to-exceed thresholds and mitigate the risk of contracts being overspent in the future. Until all City contracts are managed through ABCDs, Procurement Services staff have implemented a new process requiring a monthly review of all expenditures on citywide contracts to ensure spending is within authorized limits.
The following table summarizes the cooperative agreements and changes recommended in this report necessary to allow for continued purchasing:
Details on the various contracts and contract extensions are included as Attachments 2-13.
Policy Considerations: The recommendations in this report are in accordance with City Code Section 3.56.240 which authorizes the City Manager, where advantageous to the City, to utilize cooperative purchasing agreements approved by City Council to purchase supplies or nonprofessional services through legal contracts of other governmental agencies without separate competitive bidding by the City.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines15060(c)(3)).
Sustainability: Under Phase 1 of the City of Sacramento’s Climate Action Plan, all applicable “green” alternatives will be considered prior to the purchase of supplies and accessories. Existing modular furniture will be repurposed when practical.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: To maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement approach increases pricing competitiveness and lowers operating costs through volume purchasing. When analyzing the administrative cost of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protests, and administration of the contracts. It is often more cost-effective to purchase items and services through cooperative purchasing programs.
The City has used both regional and national cooperative purchasing agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments and the Procurement Services Division to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost-saving opportunities for the City.
Cooperative purchasing agreement No. P15-150-DT was the result of a Request for Proposals (RFP) solicited by the County of DuPage, Illinois, for a master agreement to provide furniture systems, seating, filing systems/equipment, interior solutions and related product and support services. Contracts were awarded to four firms, including Allsteel, Kimball Office Furniture, National Office Furniture, and Spacesaver. These contracts were effective April 1, 2016, and have now been extended through March 31, 2020. One additional extension option is available on each contract, and it is likely they will be extended through March 23, 2021.
Cooperative purchasing agreement No. 031715-STI was the result of an RFP solicited by the National Joint Powers Alliance, for a master agreement to provide Steelcase furniture. A contract was awarded effective April 9, 2015, and has been extended through April 9, 2020.
Cooperative purchasing agreement No. 440003403 was the result of an RFP solicited by the County of Fairfax, Virginia, for a master agreement to provide Herman Miller furniture. A contract was awarded effective January 1, 2013, and has been extended through December 31, 2020.
Financial Considerations: Purchases will be executed by the various City departments on an as-needed basis. These purchases will be funded by departmental operating and project budgets, subject to funding availability.
Local Business Enterprise (LBE): Cooperative purchasing agreements are created, evaluated, and awarded by other government agencies that may or may not have similar local business programs. All efforts will be made to encourage and utilize LBE distributing vendors when possible.