HomeMy WebLinkAbout31 - CC-13 - Cooperative Purchase of Office Supplies - 9/20/2016CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 20, 2016 ITEM NUMBER: CC -13
SUBJECT: COOPERATIVE PURCHASE OF OFFICE SUPPLIES THROUGH STAPLES
ADVANTAGE
DATE: SEPTEMBER 8, 2016
FROM: FINANCE DEPARTMENT / PURCHASING
PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT:
RECOMMENDATION:
STEPHEN DUNIVENT 714.754.5243
1. City Council consider and approve a price agreement through National Joint Powers Alliance
cooperative Contract #010615 -SCC for the purchase and delivery of necessary and approved
office supplies with Staples Advantage, for an initial term expiring on September 19, 2017, and
optional three (3) one-year extensions.
BACKGROUND:
The City uses a wide variety of office supplies to support all City operations. The Costa Mesa City
Council approved participation in other public agencies' purchasing bids and contracts with adoption
of Resolution 94-11 on March 7, 1994, and over the years the City has benefitted from "piggybacking"
on cooperative contracts initiated by other public agencies. This piggybacking has allowed the City
to receive larger discounts typically offered only to high volume purchasers.
The National Joint Powers Alliance (NJPA) provides a nationally awarded Contract #010615 -SCC
for office supplies with Staples Advantage. This cooperative agreement offers discounts and rebates
on over 20,000 items from Staples' catalog. The term of this NJPA cooperative contract is through
August 1, 2020.
The City of Costa Mesa currently has a contract with Office Depot/Office Max for office supplies.
Staff intends to retain this Office Depot/Office Max contract and add a Staples Advantage contract
to supplement the catalog offerings and services of Office Depot/Office Max. The departments'
current budgeted amounts will be shared between the two contracts.
ANALYSIS -
Utilizing cooperative agreements for the procurement of office supplies meets all the requirements
set forth in the City of Costa Mesa purchasing policy manual in regards to cooperative
agreements. Staff found the cooperative agreement with Staples Advantage, which was
competitively bid by the Lodi Unified School District, to be good fit for the City of Costa Mesa. The
Lodi Unified School District cooperative contract is offered through NJPA to state and local
government agencies, public schools and not -for -profits nationwide. There is fee to the City for
utilizing this contract. The contract was awarded August 1, 2015 and is effective through August
1, 2020.
Staples Advantage has a 20,000 item catalog of office supplies available at varying discounts
under the NJPA contract. Authorized City staff will be able to order a wide variety of office supplies
with next day delivery. If obtaining a particular item is critical, contract pricing is available at
Staples retail stores for NJPA contract items. The contract with Staples Advantage includes
volume rebates of 2% for the volume anticipated by staff.
Staples Advantage will set up the ordering website, including any internal controls, to facilitate
efficient ordering and tracking. Staples Advantage will also provide training to City staff.
ALTERNATIVES:
City Council could direct staff to conduct an independent formal bid to acquire office supplies
purchase and delivery service. However, it is unlikely to obtain pricing below that of the NJPA
cooperative agreement due to the lower volume of office supplies purchased by the City.
FISCAL REVIEW:
Funding for office supplies is appropriated in the adopted budgets of each department. In Fiscal
Year 2015-16 the City expended $208,649 on office supplies. Both Staples Advantage and Office
Depot/Office Max contracts are cooperative contracts, the products of a public agency competitive
bid process. Both contracts offer discounts and rebates to users. No increase in funding is needed
to add a Staples Advantage contract as departments' budgeted amounts will be shared between the
two contracts.
LEGAL REVIEW:
The City Attorney's office has reviewed the purchase order and approves it as to form.
CONCLUSION:
Based on the ability of Staples Advantage to provide volume discount pricing and additional rebates,
and to add to our procedural efficiencies, it is recommended that City Council approve the purchase
of office supplies through the NJPA cooperative price agreement with Staples Advantage beginning
September 20, 2016 through September 19, 2017, and authorize the Chief Executive Officer to
renew the agreement for three (3) additional one-year terms, and authorize the Chief Executive
Officer to accept and execute future amendments to the agreement.
THOMAS R. HATCH
Chief Executive Officer
STEPHEN DUNIVENT
Interim Finance Director
THOMAS DUARTE
City Attorney
RAYMOND HULL
Acting Purchasing Supervisor
Attachment 1: NJPA Staples Business Advantage Contract #010615 -SCC
Attachment 2: Lodi Unified School District Notice of Award to Staples Advantage
Attachment 3: Lodi Unified School District Contract Acceptance and Award Confirmation