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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 21, 2019 <br />TITLE: <br />AWARD A BLANKET ORDER CONTRACT IN <br />THE AMOUNT OF $100,000 TO AMAZON <br />CAPITAL SERVICES, INC. FOR ONLINE <br />MARKETPLACE PURCHASE OF GOODS <br />(SPECIFICATION NO. 19-028) <br />(STRATEGIC PLAN NO.7, 5E) <br />r _ <br />FILE NUMBER <br />MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />Award a blanket order contract to Amazon Capital Services, Inc. for online marketplace purchase <br />of goods for a one-year period expiring March 31, 2020, with provisions for four, one-year <br />renewals exercisable by the City Manager, in an annual amount not to exceed $100,000, subject <br />to non -substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Agency - Purchasing Division is responsible for the <br />acquisition of the City's non -Public Works related goods and services at the lowest total cost. <br />Specifically, goods purchased under $5,000 which are infrequent in nature and do not warrant a <br />contract, Amazon Capital Services, Inc. provides a competitive selection of products at a <br />reasonable price. In these instances, comparison pricing between resellers has occurred within <br />the Amazon marketplace; as a result, a lower cost along with free and time -sensitive shipping <br />has been provided to City Departments. <br />The majority of expenditures purchased through Amazon are related to City mobile <br />telecommunications; computer equipment; related software or hardware; along with office <br />essentials that are not included in our office supply contract. To date, the City has spent <br />approximately forty-eight thousand dollars ($48,000) through the Amazon Business marketplace <br />while providing the City with efficient method in procuring products. Approval of the purchase <br />order will allow for continued efficiencies to be realized by City Departments, including the <br />Information Technology Department when fulfilling City department's technology needs. <br />Amazon.com rolled out their Amazon Business site during calendar year 2015. The Amazon <br />Business site is tailored specifically for the public sector, including state and local government <br />agencies, public and private K-12 school districts. The site offers comparison shopping, price <br />22A-1 <br />