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Finance & Management Services <br />www.santa-ana.org/finance <br />Item # 17 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />July 19, 2022 <br />TOPIC: Amendment to the Online Marketplace Purchase of Goods Contract <br />AGENDA TITLE: <br />Approve an Amendment to the Amazon Capital Services, Inc. Contract for the Purchase <br />of Online Marketplace Goods for an Annual Amount Not to Exceed $400,000 per Year, <br />for a Two-Year Term (Specification No. 19-028) (General and Non-General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an amendment to increase the blanket order <br />contract with Amazon Capital Services, Inc. for an additional $300,000 per year for the <br />period beginning July 20, 2022 and expiring June 30, 2024, subject to non-substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On May 21, 2019, The Santa Ana City Council awarded a contract to Amazon Capital <br />Services, Inc. for the purchases of online marketplace goods. The awarded amount was <br />not to exceed an annual amount of $100,000 per year. Since the enactment of the <br />contract, multiple City agencies regularly mention that Amazon can easily provide one-off <br />items consistently at a cost effective rate. Furthermore, Amazon’s Business Prime online <br />ordering system provides tracking and payment information for the requesting agency <br />and spend analysis reports for buyers. <br />Over the past three years, the utilization of the Amazon ordering system has significantly <br />reduced non-Public Works related services and goods, and has created efficiencies within <br />departments to secure their orders at a much quicker pace. Currently, there are over <br />20,000 vendors located within Orange County selling on Amazon with 840 of them in <br />Santa Ana. Amazon has also created a campaign to highlight Santa Ana vendors as a <br />first choice option, then Orange County vendors as a second choice, followed by various <br />sellers while departments search for their items. <br />Additionally, with the implementation of the City’s Amazon Business Prime account in <br />2019, orders have steadily increased due to the vast assortment of one-off items that <br />Amazon routinely provides. Therefore, staff recommends amending the contract to <br />increase the contract amount by $300,000 per year.