|
Item 1.F.
|
| City Council Regular | |
| Date: | 02/13/2023 |
| Title: | Commercial Card (Pcard) Services Contract with US Bank |
| Presented by: | Liz Kampa |
| Department: | Finance |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends that the City Council approve, and the Mayor sign, the Commercial Card (Pcard) Services contract with US Bank for three years, with seven allowable renewal terms, for up to ten years.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
US Bank has managed the City's Commercial Card (Pcard) program since 2002. The current contract with US Bank expires February 28, 2023.
The State of Montana is a participating agency in the NASPO ValuePoint Cooperative Purchasing Master Agreement No. 00719/0089. Pursuant to MCA 18-4-402 and the City's Purchasing Procedures, local government agencies are permitted to take advantage of the cost savings realized by the State's purchasing volume and other Cooperative Purchasing programs. Cooperative purchasers benefit by purchasing through term contracts through cost savings, expedited order processing, as well as insuring all procurement is completed via proper procurement rules governed by the State and City.
Staff recommends the contract term of 10 years is reasonable due to the emerging technology involved with these services and the amount of time, effort, and cost it would take to switch to another vendor. Integration to the City's financial system is established and the staff that manages this program is trained and familiar with the processes. The contract with US Bank is recommended to be for a 3-year contract, with 7 one-year allowable renewals, beginning on March 1, 2023, and expiring on February 28, 2033.
The State of Montana is a participating agency in the NASPO ValuePoint Cooperative Purchasing Master Agreement No. 00719/0089. Pursuant to MCA 18-4-402 and the City's Purchasing Procedures, local government agencies are permitted to take advantage of the cost savings realized by the State's purchasing volume and other Cooperative Purchasing programs. Cooperative purchasers benefit by purchasing through term contracts through cost savings, expedited order processing, as well as insuring all procurement is completed via proper procurement rules governed by the State and City.
Staff recommends the contract term of 10 years is reasonable due to the emerging technology involved with these services and the amount of time, effort, and cost it would take to switch to another vendor. Integration to the City's financial system is established and the staff that manages this program is trained and familiar with the processes. The contract with US Bank is recommended to be for a 3-year contract, with 7 one-year allowable renewals, beginning on March 1, 2023, and expiring on February 28, 2033.
STAKEHOLDERS
Nearly 300 City staff currently have US Bank Pcards.
ALTERNATIVES
City Council may:
Approve the contract with US Bank for Commercial Card (Pcard) services; or,
Not Approve the contract with US Bank for Commercial Card (Pcard) services, and provide further guidance to staff.
Approve the contract with US Bank for Commercial Card (Pcard) services; or,
Not Approve the contract with US Bank for Commercial Card (Pcard) services, and provide further guidance to staff.
FISCAL EFFECTS
The City's Purchasing Card Program allows for and significantly reduced administrative costs for time in processing small payments and invoices. Additionally, rebate opportunities exist within the contract. Most recently, the City is on-track to receive approximately $31,000 in rebate for last year. Utilizing the power and volume of the NASPO ValuePoint Cooperative Purchasing Agreement substantially increases the likelihood of an even larger rebate in future years.