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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 17, 2012 <br />TITLE: <br />AGREEMENT WITH SINGLE POINT <br />ALLIANCE, INC. FOR PROVIDING A <br />CENTRAL STORES CONSIGNMENT <br />INVENTORY PROGRAM <br />L4?b? - <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 15S Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute the attached agreement with <br />Single Point Alliance, Inc. to provide Central Stores a consignment inventory program for a two- <br />year period in an annual amount not to exceed $667,500, subject to non-substantive changes <br />approved by the City Manager and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Agency has been in the process of evaluating services <br />to reduce organizational costs and/or to provide efficient and effective service levels. One area <br />identified is the area of inventories cost control through the usage of a consignment inventory <br />program. Under this program, a selected vendor stocks a warehouse with inventory that will <br />remain their property until the inventory items are issued to end-users. A consignment inventory <br />program for the Central Stores operation will provide several benefits, including reduced <br />inventory costs, discounted pricing, and other soft cost savings. <br />On December 6, 2011, the Finance and Management Services Agency (FMSA) issued a request <br />for proposals for providing a Central Stores consignment inventory solution. Requests for <br />proposals were mailed to six vendors. A pre-proposal conference was conducted on January 26, <br />2012 and three vendors submitted proposals for review. Gale Supply, Grainger, and Single <br />Point Alliance each submitted proposals for consideration. An evaluation committee consisting <br />of representatives from FMSA's Budget, Purchasing and Central Stores divisions reviewed and <br />evaluated the proposals. Single Point Alliance rated highest with 332 points, followed by <br />Grainger with 207 points, and Gale Supply scored 105 out of a maximum 400 points. <br />Gale Supply Grainger <br />J Single Point Alliance <br />105 207 ?= 332 <br />Vendors were asked to submit proposals that would provide for stocking the Central Stores <br />warehouse on a consignment basis. Under the consignment program, Single Point Alliance will <br />stock the warehouse with inventory that will remain their property until the inventory items are <br />25D-1