REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SUBJECT
Title
Approve the award of a citywide requirements contract to Office Depot, LLC for five years with two one-year optional extensions for the purchase of office supplies, in the amount of $750,000 per year plus annual CPI increases. (Bid File 9621)
Body
RECOMMENDATION
Staff recommends Council approve the award of a citywide requirements contract to Office Depot, LLC for five years with two one-year optional extensions for the purchase of office supplies in the amount of $750,000 per year plus annual CPI increases.
EXECUTIVE SUMMARY
The General Services Department, Purchasing Division is recommending the cooperative purchase agreement with Office Depot, LLC for the purchase of office supplies to be used citywide. The cooperative purchase agreement will be authorized through a competitively solicited cooperative procurement process administered by Oregon State University in partnership with Omnia Partners.
BACKGROUND
The General Services Department, Purchasing Division is responsible for administering the citywide agreement for office supplies. The supplies purchased through this cooperative purchase agreement will be ordered and utilized by various City departments on an as-needed basis.
Utilizing the cooperative contract was determined to be the most cost-effective method and overall best value for obtaining consumable office supplies for the City. The City is currently using a cooperative purchase agreement with Staples Incorporated. Office Depot, LLC has three retail stores within the City of Fresno for departments to utilize at a discounted rate when same-day needs arise. The stores also provide benefit to the City in terms of both employment and tax revenue. Office Depot, LLC offers a 1% discount on orders placed online exceeding $299, received at the time the order is placed. Additionally, the City will receive an annual volume rebate of 0.5% and the contract allows for a custom core list of the City’s most-used and highest-spend items to be targeted for additional discounts. The City will save an average of 17% on the items most frequently purchased by departments in comparison to Staples, Inc.
The office supplies will be purchased through a competitively solicited cooperative purchase agreement with Oregon State University.
The City Attorney has reviewed and approved the contract to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
Under the City of Fresno’s AO 8-13, City’s Use of Environmentally Preferable Products, all applicable “green” alternatives will be considered prior to the purchase of supplies and accessories.
LOCAL PREFERENCE
Local preference is not applicable. The City is not issuing a request for proposals for this cooperative purchase agreement.
FISCAL IMPACT
The funding has been included in each departments’ line-item budget as part of the FY2023 adopted budget to cover the cost of office supplies.
Attachments:
Cooperative Purchase Agreement
Combined Ads
Office Depot Contract
Proposal Evaluation
Original RFP