HomeMy WebLinkAboutItem 12 - Purchase Order Contract with Quadient, Inc. for Postage, Supplies, and Shipping Parcels (Specification No. 26-061) Finance and Management Services
www.santa-ana.org/finance
Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 19, 2026
TOPIC: Postage, Supplies, and Shipping Parcels
AGENDA TITLE
Purchase Order Contract with Quadient, Inc. for Postage, Supplies, and Shipping Parcels
(Specification No. 26-061) (General Fund)
RECOMMENDED ACTION
Award a Purchase Order Contract to Quadient for postage, supplies, and parcel shipping
services in an amount of $375,000, for a one-year term beginning May 19, 2026 and
expiring May 18, 2027, with provisions for four (4), one (1) year renewal options, in a total
amount not to exceed $1,575,000.
GOVERNMENT CODE 484308 APPLIES: No
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 May 7, 2024, the City Council awarded an evergreen contract
with Quadient Inc. for an annual amount of$200,000. The annual contract amount for the
contract term from May 8, 2025 through May 7, 2026 was exceeded primarily due to
increased mailing volume associated with the Rental Registry Program, additional
citywide mailers from various departments, and increased operational demand. While
postage rates have increased in recent years, the higher contract usage was driven
mainly by the increased volume of required mailings and notices. Staff is requesting
approval of a new contract with Quadient Inc. for an amount not to exceed $1,575,000 to
support ongoing operational mailing needs, including capacity to pay outstanding invoices
for services and goods previously provided during the prior contract term.
Santa Ana Municipal Code, Section 2-807(d) authorizes the City to purchase against
contracts from any public agency utilizing a competitive bid process. Sourcewell, a
cooperative government purchasing agency, awarded a contract to Quadient Inc.
(070125-QDT)as a result of an open, competitive bidding on behalf of its members, which
includes government agencies.
Postage, Supplies, and Shipping Parcels
May 19, 2026
Page 2
Staff researched available procurement options and determined that Quadient Inc. meets
the City's specifications and can provide the Postage, Supplies, and Shipping Parcels to
be utilized by the Finance and Management Agency — Central Services Division. By
leveraging the procurement power through cooperative purchasing, the City of Santa Ana
is able to obtain nationally vetted, high quality products at competitive volume pricing, and
is in accordance with the City's existing Purchasing Guidelines.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Total contract costs for Postage, Supplies, and Shipping Parcels are limited to an amount
not to exceed $1,575,000 over the term of the agreement. Funding is available in the
current FY 2025-26 budget and funding for subsequent fiscal years will be included in the
proposed budget for City Council consideration.
Accounting Unit- Fund Accounting Unit-
Fiscal Year Account# Description Accounting No. Amount
Description
Finance &
FY 2025-26 Management
(May-Jun) 01110120-63020 Services- Postage/Printing $75,000
Purchasing
Finance &
FY2026-27 01110120-63020 Management Postage/Printing $300,000
(Jul- May) Services-
Purchasing
Subtotal for Year 1 $375,000
Optional Four, 1-Year Extensions
Finance &
FY 2027-28 01110120-63020 Management Postage/Printing $300,000
Services -
Purchasin
Finance &
FY 2028-29 01110120-63020 Management Postage/Printing $300,000
Services -
Purchasin
Finance &
FY 2029-30 01110120-63020 Management Postage/Printing $3000,000
Services -
Purchasin
FY 2030-31 01110120-63020 Finance & Postage/Printing $300,000
Mana ement
Postage, Supplies, and Shipping Parcels
May 19, 2026
Page 3
Services -
Purchasin
Subtotal $1,200,000
Total $19575,000
Submitted By: Alexander Trinidad, Executive Director of Finance & Management
Services Agency
Approved By: Alvaro Nunez, City Manager