9.B.
City Council Meeting - FINAL
- Meeting Date:
- 06/03/2014
- From:
- Amy Hagin, Senior Procurement Specialist
Information
TITLE:
Consideration and Approval of Contract: Services Agreement; Desktop Office Supplies
RECOMMENDED ACTION:
-
1) Accept the Proposal and approve the agreement with OfficeMax North America, Inc. for annual purchases of desktop office supplies
2) Authorize the City Manager to execute the necessary documents
Policy Decision or Reason for Action:
To provide City staff a source to obtain office supplies at a fixed discount price. The Proposer will develop office supply lists which will enable the City to find cost savings and cost control through volume buying all the while meeting our sustainability goals.
Financial Impact:
The City had over $200,000 in expenditures during Fiscal Year 2013 on desktop office supplies. The Proposer's offer includes a 2% rebate, to be paid annually on purchases, providing that purchases exceed $50,000 per year. The Proposer is also offering a 5% retention allowance during the initial 60 days on sales volume upon execution of agreement.
In addition, the suggested agreement contains cooperative purchasing language enabling other organizations to utilize the agreement subject to Proposer approval. The Proposer is offering the City a 1% rebate on purchases made by other organizations utilizing the City's agreement when said purchases are greater than $50,000 per year. With a similar rebate structure in previous years, the City has received on average $7,500 in rebate dollars annually.
In addition, the suggested agreement contains cooperative purchasing language enabling other organizations to utilize the agreement subject to Proposer approval. The Proposer is offering the City a 1% rebate on purchases made by other organizations utilizing the City's agreement when said purchases are greater than $50,000 per year. With a similar rebate structure in previous years, the City has received on average $7,500 in rebate dollars annually.
Connection to Council Goal:
11. Effective governance.
Has There Been Previous Council Decision on This:
No
Options and Alternatives:
1) Award the agreement to OfficeMax North America, Inc.
2) Reject all proposals and direct staff to make office supply purchases on an "open retail market" incurring higher costs and losing potential rebate funds
Background/History:
The City has utilized an agreement with preferred pricing from a desktop office supply vendor previously with great success in lieu of creating the need for our staff to make purchases on the "open retail market".
With the most recent agreement expiring, the Purchasing Section conducted a Request for Proposal (RFP). Four (4) proposal responses were received which were evaluated by an evaluation committee comprised of five (5) City staff members. The proposals were evaluated with the following criterion: experience and qualifications, presented approach, structure and sustainability, and pricing. The presented approach, structure and sustainability contained topics such as electronic-commerce capabilities, cost containment tools, reporting and tracking, and environmentally preferred products to name a few.
The proposal submitted by OfficeMax North America, Inc. (OfficeMax) was ranked the highest and determined to be the most advantageous for the City. OfficeMax has a Flagstaff location/storefront as well as the online ordering service. The suggested agreement is structured with item/sku pricing on frequently purchased office supplies. Any item/sku not on this list is offered with the preferred pricing structure as indicated by the Proposer.
The rankings were as follows, by category:
With the most recent agreement expiring, the Purchasing Section conducted a Request for Proposal (RFP). Four (4) proposal responses were received which were evaluated by an evaluation committee comprised of five (5) City staff members. The proposals were evaluated with the following criterion: experience and qualifications, presented approach, structure and sustainability, and pricing. The presented approach, structure and sustainability contained topics such as electronic-commerce capabilities, cost containment tools, reporting and tracking, and environmentally preferred products to name a few.
The proposal submitted by OfficeMax North America, Inc. (OfficeMax) was ranked the highest and determined to be the most advantageous for the City. OfficeMax has a Flagstaff location/storefront as well as the online ordering service. The suggested agreement is structured with item/sku pricing on frequently purchased office supplies. Any item/sku not on this list is offered with the preferred pricing structure as indicated by the Proposer.
The rankings were as follows, by category:
| Rank | Ink Envey | OfficeMax | Quality Connections | Staples |
| Experience & Qualifications | 4 | 1 | 3 | 1 |
| Presented Approach, Structure, Sustainability | 4 | 1 | 2 | 2 |
| Price/Fee | 4 | 1 | 3 | 2 |
| Total Ranking | 4 | 1 | 3 | 2 |
Key Considerations:
The goal of the RFP for desktop office supplies is to ensure that the City is receiving a competitive price structure on items from a experienced, qualified, sustainable-minded firm whose presented approach and structure to offering desktop office supplies met the City's needs. Key considerations for the desktop office supplies were competitive pricing, delivery to the City's multiple locations, a stockless office supply program, utilization of the City's procurement card (P-card) system, and online ordering capabilities.
The Proposer offers a fixed pricing structure (with the exception on paper and ink toner) for a period of 12 months. Paper and ink toner are extremely volatile so will be on a 90-day price fix and reviewed quarterly thereafter. The Proposer offers competitive pricing with a rebate structure, desktop delivery, a stockless program, online ordering with orders delivered next day, training on ordering system, reporting tools on usage and ordering, and the ability to use the City's P-card for purchases online or at the local store.
The Proposer offers a fixed pricing structure (with the exception on paper and ink toner) for a period of 12 months. Paper and ink toner are extremely volatile so will be on a 90-day price fix and reviewed quarterly thereafter. The Proposer offers competitive pricing with a rebate structure, desktop delivery, a stockless program, online ordering with orders delivered next day, training on ordering system, reporting tools on usage and ordering, and the ability to use the City's P-card for purchases online or at the local store.
Community Involvement:
Empower
This agreement will empower City staff to make desktop office supplies purchases with preferred pricing and rebate opportunities.
This agreement will empower City staff to make desktop office supplies purchases with preferred pricing and rebate opportunities.