22A - GRAINGER INC FOR MAINTENANCE

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Award Contract for Maintenance, Repair and Operations Supplies January 21, 2020 Page 2 Purchasing staff researched procurement options for maintenance, repair and operations supplies. Santa Ana Ordinance No. NS-2770 authorizes the City to purchase from vendors that have been awarded a contract resulting from a competitive bid. Using cooperative purchasing contracts offers public agencies opportunities for greater efficiencies in acquiring goods and provides greater cost savings by leveraging multiple agency buying volumes. On July 1, 2019, Grainger, Inc. was awarded a contract through Omnia Partners (National IPA and U.S. Communities), an independent public sector cooperative purchasing agency, as a result of a competitive bid comparable to the City's process. Grainger, Inc. was selected based on their competitive pricing, service levels, breadth of product offering, and local economic impact and is able to manage high frequency, small volume, will -call orders made for a wide variety of materials. The Omnia Partners contract term is from July 1, 2019 through December 2022, with two one-year renewal options. On February 3, 2015, the City Council awarded a three-year contract with provisions for two one- year renewal options to Grainger, Inc. based upon a competitively bid contract awarded through the National Intergovernmental Purchasing Alliance (National IPA). Since the blanket order contract was established, contract usage by multiple City departments providing maintenance and repair services for the City's infrastructure has increased as City staff more frequently performs certain maintenance, repairs, and light construction projects whenever possible in an effort to reduce other contractual costs. Increasing the current contract amount will allow staff to continue meeting the ongoing demand to complete repairs and maintenance work. Staff recommends approval of the amended annual not -to -exceed amount through the end of the current blanket order contract term on January 31, 2020. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds are available in the various departmental Operating Materials and Supplies accounts (63001). Kathryn Downs, CPA Executive Director Finance and Management Services Agency 22A-2