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HomeMy WebLinkAbout22A - GRAINGER INC FOR MAINTENANCEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 21, 2020 TITLE: AWARD BLANKET ORDER CONTRACT IN THE AMOUNT OF $250,000 TO GRAINGER, INC. AND AMEND CURRENT BLANKET ORDER CONTRACT ($157,000) WITH GRAINGER, INC. FOR MAINTENANCE, REPAIR AND OPERATIONS SUPPLIES (SPECIFICATION NO. 20-001) {STRATEGIC PLAN NO. 6,21 /s/Kristine Ridge CITY MANAGER :7xd91LViILVi121ki1111111A11111V_«IEel ki CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Award a blanket order contract to Grainger, Inc., for maintenance, repair and operations supplies for a three-year period expiring December 31, 2022, with provisions for two one-year renewal periods exercisable by the City Manager, in an annual not to exceed amount of $250,000, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Amend current blanket order contract amount with Grainger, Inc. (Specification 15-003) for maintenance, repair and operations supplies by $27,000 for a new total amount of $157,000 to allow for uninterrupted services through the end of the current contract term on January 31, 2020. DISCUSSION Citywide departments require miscellaneous supplies, parts, equipment, and materials in order to perform general maintenance. Supplies for maintenance and repairs include power tools, hardware, HVAC, electrical, plumbing, confined space and safety equipment and supplies. These types of items are ordered on an as -needed basis by various end -user departments and agencies including Public Works, Police, Detention Facility, Building Maintenance, and Parks, Recreation and Community Services. This contract will be utilized to ensure City facilities are maintained and adequate tools, supplies, and materials are reasonably available for the ongoing maintenance of City facilities. 22A-1 Award Contract for Maintenance, Repair and Operations Supplies January 21, 2020 Page 2 Purchasing staff researched procurement options for maintenance, repair and operations supplies. Santa Ana Ordinance No. NS-2770 authorizes the City to purchase from vendors that have been awarded a contract resulting from a competitive bid. Using cooperative purchasing contracts offers public agencies opportunities for greater efficiencies in acquiring goods and provides greater cost savings by leveraging multiple agency buying volumes. On July 1, 2019, Grainger, Inc. was awarded a contract through Omnia Partners (National IPA and U.S. Communities), an independent public sector cooperative purchasing agency, as a result of a competitive bid comparable to the City's process. Grainger, Inc. was selected based on their competitive pricing, service levels, breadth of product offering, and local economic impact and is able to manage high frequency, small volume, will -call orders made for a wide variety of materials. The Omnia Partners contract term is from July 1, 2019 through December 2022, with two one-year renewal options. On February 3, 2015, the City Council awarded a three-year contract with provisions for two one- year renewal options to Grainger, Inc. based upon a competitively bid contract awarded through the National Intergovernmental Purchasing Alliance (National IPA). Since the blanket order contract was established, contract usage by multiple City departments providing maintenance and repair services for the City's infrastructure has increased as City staff more frequently performs certain maintenance, repairs, and light construction projects whenever possible in an effort to reduce other contractual costs. Increasing the current contract amount will allow staff to continue meeting the ongoing demand to complete repairs and maintenance work. Staff recommends approval of the amended annual not -to -exceed amount through the end of the current blanket order contract term on January 31, 2020. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds are available in the various departmental Operating Materials and Supplies accounts (63001). Kathryn Downs, CPA Executive Director Finance and Management Services Agency 22A-2