Title:
Title
Contracts: Citywide Ergonomic Office Furniture and Equipment
End
FileID
File ID: 2019-00186
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or the City Manager’s designee to execute supplemental agreements with current office furniture suppliers in order to re-classify the current contracts as citywide and increase the existing not-to-exceed amounts for: 1) Office Relief Incorporated from $100,000 to $500,000; 2) River City Office Supply from $100,000 to $150,000; 3) Burkett’s Office Supplies Incorporated from $100,000 to $250,000; and 4) United Corporate Furnishings from $100,000 to $500,000.
Contact: Ashley Petralli, Contract and Compliance Specialist, (916) 808-5749, Department of Finance
Body
Presenter: None.
Attachments:
1-Description/Analysis
2-C2018-1680 Office Relief Incorporated
3-Proposed Supplement: C2018-1680-1 Office Relief Incorporated
4-C2018-1682 River City Office Supply
5-Proposed Supplement: C2018-1682-1 River City Office Supply
6-C2018-1679 Burkett’s Office Supplies Incorporated
7-Proposed Supplement: C2018-1679-1 Burkett’s Office Supplies Incorporated
8-C2018-1681 United Corporate Furnishings
9-Proposed Supplement: C2018-1681-1 United Corporate Furnishings
Description/Analysis
Issue Detail: In 2018, the Human Resources Department released a Request for Bid which resulted in the execution of four contracts with different vendors to supply ergonomic office furniture and equipment. Council approved these four contracts and language included that allowed other departments throughout the City to piggyback on the original bid in order to enter into their own contracts to purchase ergonomic furniture. In lieu of requiring all departments to have individual contracts for the purchase of ergonomic office furniture, Procurement Services determined it was in the best interest of the City to supplement the current contracts so that they may be used citywide.
Policy Considerations: City Council approval is required for service and supply contracts in amounts of $100,000 or more.
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: Not Applicable.
Commission/Committee Action: Not Applicable.
Rationale for Recommendation: On November 20, 2018, Council passed Motion 2018-0357, approving contracts with four furniture suppliers who responded to Bid B18081324005 for ergonomic furniture and equipment. On January 31, 2019, Procurement Services issued Sourcing Event # B19061511010 by invitation only to the same four vendors currently under contract. The sourcing event issued by Procurement Services piggybacks on Human Resource’s original bid and expands the list of items that can be purchased. Supplemental contracts for each vendor were written to update the current contracts so they can be used on a citywide basis, to account for the new items quoted, and to increase the not-to-exceed values to reflect anticipated citywide spend over the life of these contracts. Approval of the supplements to allow these contracts to be used citywide will eliminate the need for each department to enter into their own agreements with these vendors and will simplify the procurement process for both the City and our vendors. Centralizing the management of this contract to Procurement Services is in the best interest of the City as it eliminates duplication of efforts throughout City departments.
Financial Considerations: The original contract amounts were reflective of the anticipated furniture needs for the Human Resources Department. An analysis of historic citywide spending on similar furniture products revealed that an average of $275,000 has been spent annually. If this trend continues, the City will spend approximately $1.375 million on these proposed contracts over the next five years. This amount was rounded to $1.4 million and was divided between the four vendors and awarded based upon best pricing offered for items quoted, and volume of past order history. Individual departments will use these contracts to purchase ergonomic furniture on an as-needed basis executing their own purchase orders and utilizing their approved operating budget.
Local Business Enterprise (LBE): River City Office Supply, Burkett’s Office Supplies Incorporated, and United Corporate Furnishings are all LBE. Office Relief Incorporated is not an LBE.