Title:
Title
Agreement: Cooperative Purchase Agreement for Electrical Supplies and Accessories [Published for 10-Day Review 07/25/2019]
End
FileID
File ID: 2019-00996
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion: 1) approving the use of Omnia Partners’ cooperative purchasing agreement with Graybar (Contract No. EV2370) for the purchase of electrical supplies and accessories in an amount not to exceed $2.6 million through January 31, 2023, or until the cooperative agreement is no longer available for use if the options to extend the cooperative agreement are exercised; and 2) authorizing the City Manager or the City Manager’s designee to execute purchases from this agreement.
Contact: Gary O’Neill, Procurement Analyst, (916) 808-7432; Robert C. Adams, Procurement Services Manager, (916) 808-5524, Department of Finance.
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Official Contract
Description/Analysis
Issue Detail: City departments require electrical supplies and accessories to comply with various City requirements and to support their operations. After reviewing available purchase options, it has been determined that the Omnia Partners cooperative purchase agreement with Graybar provides the most advantageous solutions to support the City’s electrical supplies and accessories needs.
The City of Kansas City, MO, in association with Omnia Partners, solicited a Request for Proposals (RFP) EV2370 for electrical, lighting, data communications, and security products and related products, services, and solutions, with a deadline of October 6, 2017. A 5-year agreement, with an initial term of February 1, 2018 through January 31, 2023, and options for three additional 2-year renewals through January 31, 2029, was awarded on December 1, 2017.
Policy Considerations: Pursuant to City Code 3.56.240, the City, where advantageous, by cooperative purchasing agreements approved by City Council, purchase supplies or non-professional services through legal contracts of other public agencies.
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 million shall be made available to the public at least ten (10) days prior to council action. This item was published on July 25, 2019 in compliance with the City Code.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b)(2). The activity is a continuing administrative or maintenance activity, such as the purchases for supplies, personnel-related actions, general policy and procedure making and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3).
Sustainability: The recommended contract is consistent with the Sustainable Purchasing Policy (AP-4003).
Commission/Committee Action: None
Rationale for Recommendation: After reviewing the available purchasing options, Procurement Services has determined that the Omnia Partners cooperative purchase agreement with Graybar, a leading distributor of data/communication, networking, wireless, security, electrical, and lighting products, represents the most advantageous purchasing strategy. The contract was competitively bid, and Omnia Partners receives greater discounts from this supplier due to a higher purchase volume.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing agreements. This procurement approach increases pricing competitiveness, reduces administrative costs and leverages pricing through greater volume buying. The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives where possible. Cooperative purchasing enables City departments 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 savings opportunities for the City.
Financial Considerations: City departments, primarily the Departments of Public Works and Utilities, currently purchase equipment, on an as needed basis, totaling approximately $230,000 per year for all departments through this cooperative agreement. The requesting department operating budgets will be used to cover the costs associated for purchases and services associated with this agreement.
Local Business Enterprise (LBE): The LBE requirement does not apply to the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.