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ITEM 13
City Council Memorandum Management Services Memo No. N/A
Date:
February 24, 2022
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Dawn Lang, Deputy City Manager - CFO
From:
Christina Pryor, Purchasing and Material Manager
Subject:
Agreement No. MS1-946-4303, for Procurement Card Services, with Bank of America
Proposed Motion:
Move City Council award Agreement No. MS1-946-4303 to Bank of America, for Procurement Card Services, for a two-year period, beginning January 1, 2022, through December 31, 2023, with up to four two-year options to extend.
Background/Discussion:
The City of Chandler was the first municipality in Arizona to develop a procurement card (p-card) program beginning in 1993. Through the use of individual procurement cards, department and division cards, and ghost cards, the annual spend is almost $10.3 million and the number of cardholders is now approximately 800. This revenue-generating program provides the City with the means to be efficient and cost-effective in the processing of payments and equips the City with user-friendly reporting tools. It automates the interface with the City's Oracle financial system, which allows for online review and approval of transactions to ensure program-compliant spending.
The City's contract is cooperative and is used by over 30 public agencies. This feature is a benefit to the City because the total spend volume by all users, in addition to the City's individual spend, is considered in the determination of the amount of annual rebate the City receives through the p-card program.
Evaluation:
On May 12, 2021, City staff issued Request for Proposal No. MS1-946-4303 for procurement card services. A notification was sent to all registered vendors. Five proposals were received from the following offerors:
Bank of America
Commerce Bank
JPMorgan Chase Bank
UMB Bank
US Bank
The Evaluation Committee evaluated the proposals and recommends award to Bank of America, which submitted the most advantageous offer to the City in accordance with the evaluation criteria. This contract will continue the long-term relationship between Bank of America and the City of Chandler.
Financial Implications:
There are no direct fees to the City for this p-card program, since fees are paid by card-accepting merchants. There is, however, rebate revenue generated annually from this program, which fluctuates based on spend volume.
Attachments
B of A Corporate Credit Card Agreement
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