REPORT TO THE CITY COUNCIL
November 15, 2018
FROM: MICHAEL LIMA, Finance Director/Controller
Finance Department
SUBJECT
Title
Approve the award of a service contract to Aramark Uniforms & Career Apparel of Fresno, California for the rental of uniforms and linen and dust control products in the amount of $176,576.40.
Body
RECOMMENDATION
Staff recommends Council approve the award of a service contract to Aramark Uniforms & Career Apparel for the rental of uniforms and linen and dust control products in the amount of $176,576.40.
EXECUTIVE SUMMARY
The Finance Department - Purchasing Unit is seeking to establish a requirements contract for uniforms with laundry service and linen and dust control products. The City of Fresno (City) provides uniforms to its employees per the city wide uniform program as described in Administrative Order 3-6. The City also rents linen and dust control products for its various automotive and facility needs from similar vendors in the industry. Through analysis of historical and anticipated costs for these services, the Purchasing Unit recommends combining the two separate contracts in order for the City to capitalize on various savings and efficiencies including: economies of scale due to combined volume, reduced contract administration, and stability of pricing due to a multiyear requirements contract. The contract will be awarded based on the approved competitive proposal process at a total cost of $176,576.40 over three years.
BACKGROUND
The Finance Department - Purchasing Unit is responsible for conducting and maintaining City-wide contracts including the uniforms with laundry service and linen and dust control product contracts. This contract includes providing uniforms for over 800 blue collar employees, as well as linen and dust control products for over 30 different locations throughout the City. Departments who utilize these services and products include the Fire Department, Department of Public Works, Department of Transportation, PARCS, Airports, and the Department of Public Utilities.
Due to the total dollar amount and the need for stable and consistent pricing, a multiyear requirements contract for these products is required. Currently, the City offers thirteen different uniform plans for a department to choose from depending on various concerns such as safety, job duties, and aesthetic. The City also offers thirteen various towels, mops, and floor mats for operational use in the day to day activities of the department.
Competitive proposals were solicited on May 3, 2018. A notice of inviting proposals was advertised in the Business Journal on May 4, 2018. Three proposals were received on May 29, 2018. An evaluation committee was formed from three City of Fresno staff and one outside evaluator from the County of Fresno. Aramark Uniforms & Career Apparel of Fresno, California was determined to be the lowest responsive and responsible proposer offering the best value to the City. The Purchasing Unit has approved of this contract and recommends Council approval. The City Attorney and Risk have reviewed and approved the contract to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a “project.”
LOCAL PREFERENCE
Local preference was applied equally to all three proposers as all three proposers have local operations.
FISCAL IMPACT
The City of Fresno’s uniform program is governed by Administrative Order 3-6. The total cost of the program will be shared on a 50-50 basis between the City and the employee, and the appropriate employee cost will be deducted from the employee’s paycheck. The current cost to the City over the three-year contract period for uniforms at 50% will be $65,874.38, or $21,958.13 per year. The cost of the linen and dust control services over the three-year contract period will be $44,827.64, or $14,942.55 per year.
Attachments:
- Evaluation of Bid Proposals - Uniform with Laundry Service and Linen and Dust Control Services
- Report from Evaluation Committee