25D - AGMT - CONSIGNMENT - Laserfiche WebLink

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Agreement with Shamrock Supply Company, Inc. June 2, 2020 Page 2 on criteria as outlined in the RFP. Shamrock Supply Company, Inc. received an average score of 93. Shamrock proposes to provide a micro -logistic approach to vendor -managed inventory for Central Stores by providing a Central Stores Storeroom model. The automated approach will allow staff to purchase supplies via an online portal or by accessing the storeroom equipped with the technology necessary to allow employees to check out supplies via a self -checkout station. The storeroom technology will be equipped to track each individual in the storeroom along with the supplies that are removed off the shelf. Due to storage space considerations, it is anticipated that reduced Central Stores inventories will be maintained on -site with back stock maintained off -site at Shamrock's main distribution center. Under the consignment program, Shamrock will stock the warehouse with inventory that will remain their property until the inventory items are issued to City staff. Shamrock will then invoice the City when inventory items are issued. This consignment inventory model continues to produce several operational efficiencies, such as reduction of obsolete MRO supplies and shrinkage costs, elimination of the need for maintaining a large inventory of MRO supplies, as well as streamlined Purchasing and Accounts Payable processes by reducing the number of contracts, purchase orders and invoices. Shamrock will be responsible for conducting regular inventories, and restocking items that fall below minimum inventory thresholds. In accordance with the RFP evaluation results, staff recommends awarding an agreement to Shamrock Supply Company, Inc. Shamrock has experience, has been servicing the City since 2012, and has proven experience performing similar services for other agencies. Due to their long- term commitment and investment in providing the City with a more automated approach, staff is in favor of a five-year term with two one-year renewal options. The proposal contained a clear path toward achieving City goals and objectives as required by the RFP. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). FISCAL IMPACT Funds for the annual amount of $750,000 for this agreement will be included and available in the Fiscal Year 2020-21 proposed budgets and for future years in various departmental accounting units, under Miscellaneous Operating Expense account number, 63001. Exhibit 1: Agreement 25D-2