The Finance Division recently prepared a Request for Proposals (RFP) for a three-year contract to provide paper and office supplies to City departments, with three, 1-year options to renew. The RFP was advertised in the Billings Times on May 12 and 19, 2011. Six companies were also sent copies of the RFP via e mail.

The selection committee consisted of City staff: Liz Kampa-Weatherwax, Jamie Ogger, Christina Fox, Shannon Johnson, Charly Grimes and Denise Hice. List price discounts were requested for contract items (the top 200 items historically purchased by the City) and off-contract items (all other items purchased by the City).

Three proposals were received and reviewed by the committee from Reporter Big Sky Office, Inc., Office Depot and Replica Business Systems.

The committee evaluated the proposals and considered Proposal Compliance, Comprehensive Services Provided, Related Experience, Firm Stability, Value-Added Services, Assigned Individuals and Quality Assurance, before considering list price discounts. The committee unanimously selected the proposal from Reporter Big Sky Office, Inc., which has proposed an average or approximate discount of 45% off list price for contract and off-contract items.

Council may:

• Award a centralized paper and office supplies contract; or,
• Allow staff to purchase from various vendors.

City Departments/Divisions spend approximately $300,000/year on paper and office supplies and have mainly purchased through a centralized contract for past three years. This centralized contract has allowed the City to realize cost savings of approximately 39%, has saved staff time, and has given staff the ability to create reports and more accurately track spending.  The Departments/Divisions have budgeted for this expense.

The Committee recommends that the City Council approve a three-year contract, with three, 1-year options to renew, with Reporter Big Sky Office, Inc.