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Agreement with Single Point Alliance, Inc. <br />December 17, 2012 <br />Page 2 <br />issued to City staff. Once inventory items are issued to City staff, Single Point Alliance will <br />invoice the City only for items used. Through this agreement, Single Point Alliance will replace <br />approximately 51 vendors that the City uses for maintenance, repair and operation (MRO) <br />supplies. Single Point Alliance will be responsible for conducting regular inventories, and <br />restocking items that fall below minimum inventory thresholds. In addition, Single Point Alliance <br />will remove obsolete and unused items from the warehouse inventory at no cost to the City. <br />In addition to the estimated 4-6% annual savings of approximately $40,000, the City will realize <br />increased efficiencies and soft cost savings as a result of this new program. Staff estimates that <br />the number of vendors used for the procurement of MRO supplies issued out of Central Stores <br />will decrease from 72 to approximately 21. With this reduction of vendors, staff estimates the <br />number of Purchase Orders issued on a monthly basis for MRO supplies from Central Stores will <br />be reduced from 458 to approximately 127 per year. Consequently, the number of invoices <br />processed and paid by Finance and Management Services/Accounts Payable section for MRO <br />supplies issued out of Central Stores is expected to be reduced from 1,626 to approximately 589 <br />per year. As a result of these efficiencies, staff estimates a projected soft cost dollar savings of <br />$80,000 to $100,000 per year. <br />FISCAL IMPACT <br />Funds for this agreement are available in various departmental accounting units (account <br />63001). <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br />25D-2