Consideration and Approval of Contract:  2016-60 Desktop Supplies and Services

The agreement with Quality Connections will 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. The previous vendor (Office Max) was not fulfilling their obligations to the City of Flagstaff due to mergers within the company. After a year of unsatisfactory service and numerous phone calls and emails to the company, it was believed to be in our best interest to terminate the contract going forward due to performance issues. After terminating the agreement with Office Max, we were able to direct select Quality Connections pursuant to State statute authorizing direct selection of certified nonprofits that serve individuals with disabilities. Quality Connections is a local vendor that employees more than 60 percent handicapped persons and gives back to the community through job programs for their employees and training to employers on how to best manage those employees. 






 

The City of Flagstaff had over $200,000 in expenditures during Fiscal Year 2015 on desktop office supplies.  Quality Connections' offer includes a 1% rebate on all purchases. The orders can be placed via the QC website or via their customer service department. The purchase of desktop supplies incorporates the entire catalog of supplies that Quality Connections provides including paper, toner cartridges, and furniture. The purchases will be made by the individual departments via a P-card and will allow us to maximize our end of the year rebates from our P-card purchases. 

Yes, on June 03, 2014, City Council approved a contract for Desktop Office Supply Services per a formal solicitation process where Office Max was selected as the most advantageous Proposer at that time.  

1) Award the agreement to Quality Connections Inc. which will continue to circulate funds in the local market through the company's job programs.  
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.

 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 Office Max was not fulfilling the needs of our departments for more than a year. The merger between Office Max and Office Depot left the City of Flagstaff without any regional managers or supervisors to help resolve our issues. After many phones calls and emails that were never answered, we decided to terminate the 2014 agreement with Office Max.  We were able to direct select Quality Connections pursuant to Arizona Revised Statutes Section 41-2636, which allows public sector agencies to direct select a firm or organization that qualifies as a certified nonprofit agency that serve individuals with disabilities that make up more than 60 percent off their staff. The vendor is also a local vendor that gives back to the community through job training and job placement for their employees into our local community. They offer training classes to the employers as well. 

The goal of the City of Flagstaff is to give our employees the best price, service, and customer satisfaction for desktop office supplies. We are still receiving competitive pricing and actual savings over and above what we experienced with Office Max. Key considerations for the desktop office supplies agreement were more competitive pricing, resulting in higher savings with a fixed pricing structure, desktop delivery to the City's multiple locations, a stockless office supply program, online ordering system with next day delivery and utilization of the City's procurement card (P-card) system. In addition, Quality Connections offers a 1 percent rebate structure. 

Quality Connections supplies training for persons with handicaps to be able to work in the community. They also offer training to employers for the same program.  

Involve - Having a local vendor for desktop office supplies that gives money back to the community as well as helping persons with handicaps to work and be productive in the community. 

Empower - This agreement will empower City staff to make desktop office supply purchases via their P-card with preferred pricing and rebate opportunities.