HomeMy WebLinkAbout22A - ONLINE MARKETPLACE PURCHASEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 21, 2019
TITLE:
AWARD A BLANKET ORDER CONTRACT IN
THE AMOUNT OF $100,000 TO AMAZON
CAPITAL SERVICES, INC. FOR ONLINE
MARKETPLACE PURCHASE OF GOODS
(SPECIFICATION NO. 19-028)
(STRATEGIC PLAN NO.7, 5E)
r _
FILE NUMBER
MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 15' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
Award a blanket order contract to Amazon Capital Services, Inc. for online marketplace purchase
of goods for a one-year period expiring March 31, 2020, with provisions for four, one-year
renewals exercisable by the City Manager, in an annual amount not to exceed $100,000, subject
to non -substantive changes approved by the City Manager and City Attorney.
DISCUSSION
The Finance and Management Services Agency - Purchasing Division is responsible for the
acquisition of the City's non -Public Works related goods and services at the lowest total cost.
Specifically, goods purchased under $5,000 which are infrequent in nature and do not warrant a
contract, Amazon Capital Services, Inc. provides a competitive selection of products at a
reasonable price. In these instances, comparison pricing between resellers has occurred within
the Amazon marketplace; as a result, a lower cost along with free and time -sensitive shipping
has been provided to City Departments.
The majority of expenditures purchased through Amazon are related to City mobile
telecommunications; computer equipment; related software or hardware; along with office
essentials that are not included in our office supply contract. To date, the City has spent
approximately forty-eight thousand dollars ($48,000) through the Amazon Business marketplace
while providing the City with efficient method in procuring products. Approval of the purchase
order will allow for continued efficiencies to be realized by City Departments, including the
Information Technology Department when fulfilling City department's technology needs.
Amazon.com rolled out their Amazon Business site during calendar year 2015. The Amazon
Business site is tailored specifically for the public sector, including state and local government
agencies, public and private K-12 school districts. The site offers comparison shopping, price
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Blanket Order Contract for Amazon Business
May 21, 2019
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discounts, item and category restricted process flow tools and reporting, prime same-day or next
day shipping and net 30 payment terms.
Additionally, the Purchasing Department, in collaboration with the County of Orange, is working
with the Amazon Buy Local Government team to provide feedback and recommendations to
assist in our needs with the "preferred vendor" features within the Amazon site. With our
feedback, Amazon would like to build out the search and reporting features specifically with our
local vendor preference in mind. Currently, there are over 20,000 vendors located within Orange
County selling on Amazon with 840 of them in Santa Ana. As a component of Amazon's
feedback and test team for local government, there is potential to utilize the Amazon Business
site to reach new Santa Ana businesses, track local spend for non -contracted items and even
create local vendor percentage spend goals.
Santa Ana City Ordinance No. NS -2312 authorizes the City to purchase against contracts from
any public agency utilizing a competitive bid process. Amazon Capital Services, Inc. is offering
the OMNIA Partners national cooperative contract for on-line marketplace for the purchase of
products and services. The contract was awarded as a result of open, competitive bidding
conducted by the Prince William County Public Schools (based in the State of Virginia) on behalf
of all governmental and public agencies, and meets the City's current requirements. Utilizing the
OMNIA Partners cooperative contract allows the City to access the online marketplace with no
costs, minimum quantity requirements or spend limits. However, at this time Staff is
recommending an award of up to $100,000 for the current fiscal year (2018-19) along with four
annual renewals not to exceed one -hundred thousand ($100,000) annually.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports efforts to meet Goal #7 — Team Santa Ana, Objective 5, (create a
culture of innovation and efficiency within the organization) Strategy E (Identify best practices and
opportunities for process improvement and automation across City Departments in order to
provide effective and efficient delivery of City services to the community).
FISCAL IMPACT
Funds for the duration of the contract period, an amount not to exceed $100,000 annually, will be
included in various departmental Miscellaneous Operating Expense account (no. 63001).
APPROVED AS TO FUNDS AND ACCOUNTS:
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Kathryn Do ns, CPA
Executive Director
Finance and Management Services Agency
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