HomeMy WebLinkAboutItem 17 - Blanket Order Contract for Postage, Supplies, and Shipping Parcels Finance and Management Services
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Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 7, 2024
TOPIC: Blanket Order Contract for Postage, Supplies, and Shipping Parcels
AGENDA TITLE
Award Blanket Order Contract to Quadient, Inc. for Postage, Supplies, and Shipping
Parcels in an Annual Amount Not to Exceed $200,000 (Specification No. 24-043)
(General Fund)
RECOMMENDED ACTION
Award Blanket Order Contract to Quadient, Inc. for postage, supplies, and shipping
parcels for an initial one-year term beginning May 8, 2024 and expiring on May 7, 2025,
with provisions for annual renewal of the contract until terminated.
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Finance and Management Services Agency’s Central Services Division provides
automated mailing services for the City, including bulk mailing of public notices for
meetings, neighborhood meeting invitation flyers, business tax certificates, and various
other daily mailings.
On July 6, 2023, the Finance and Management Services Agency purchased a Quadient
iX-9 Automated Mailing Machine after staff performed market research and determined
it was the automated mailing machine that best fit the City’s needs. This machine was
installed and has been utilized since October 2023, replacing an older Quadient mailing
machine, the Hasler Neopost IM5000 Mailing System, purchased in 2014 which had
become non-compliant due to updated United States Postal Service (USPS) standards
and regulations related to Intelligent Mail Indicia.
Previously, the process to pay for USPS Postage required the City to provide a check
payable to the USPS, which would then transfer payment to Quadient for depositing into
an online account accessible to the City for as-needed postage.
The postage payment process has since changed, and with the new Quadient machine,
USPS Postage is pre-paid by Quadient, then invoiced to the City on an as-needed
basis. The cost of shipping parcels and mailing machine supplies (mail meter strips,
Award a blanket order contract for postage, supplies, and shipping parcels
May 7, 2024
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shipping labels, and ink) is also billed to the City under this contract. Based on historical
spending and anticipated increase of services, staff recommends creating a Blanket
Order Contract with an annual not-to-exceed amount of $200,000 to ensure sufficient
postage and related resources are available. Staff is also requesting the ability to
automatically renew the contract annually, as payment of postage can only be made via
Quadient, and the City does not foresee any shortage of shipping needs in the near or
distant future. The Blanket Order Contract will be terminated when no longer needed by
the City.
FISCAL IMPACT
Funding is available in the current FY 2023-24 budget and funding for subsequent fiscal
years will be included in the proposed budget for City Council consideration.
Fiscal Year Accounting
Unit-
Account #
Fund Description Accounting Unit,
Account
Description
Amount
2023-24
May – Jun
01110120-
63020
General
Fund/FIN/MGMT SVS -
Purchasing
Postage/Printing $33,334
2024-25
Jul – May
01110120-
63020
General
Fund/FIN/MGMT SVS -
Purchasing
Postage/Printing $166,666
Submitted By: Kathryn Downs, Executive Director of Finance and Management
Services
Approved By: Alvaro Nuñez, Acting City Manager