Agenda #: 5.16
Meeting Date: June 20, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: CONTINUED PARTICIPATION IN THE NATIONAL
INTERGOVERNMENTAL PURCHASING ALLIANCE TO PURCHASE
JANITORIAL SUPPLIES FOR CITY FACILITIES.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
Adopt Resolution No. 2023-24 authorizing participation in the National Intergovernmental Purchasing Alliance to purchase janitorial supplies for City Facilities in the not-to-exceed amount of $65,000 for Fiscal Year 2023/24.
FINANCIAL IMPACT:
Sufficient funds for the purchase of sanitary supplies are included in the Fiscal Year 2023/24 Operating Budget for the Civic Center, Diamond Bar Center, and various Parks totaling $65,000.
BACKGROUND/ANALYSIS:
The City's purchasing ordinance, codified in Chapter 3.24 of the Diamond Bar Municipal Code, generally requires the use of formal bidding procedures for the procurement of goods and services that cost in excess of $45,000. Section 3.24.090(f) provides an exception as follows: "When supplies, personal property, services or equipment can be more efficiently or more cost efficient obtained through a cooperative purchasing program with a federal, state, county, local or other government purchasing program.
Such purchases through a cooperative purchasing program shall be authorized by resolution of the City Council."
The City has been using Waxie Sanitary Supply for janitorial supplies at the City facilities. Waxie provides high-quality products and years of responsive customer service that staff has come to rely on. On February 17, 2015, the City Council authorized the use of the National Intergovernmental Purchasing Alliance (NIPA),
currently part of OMNIA Partners - Public Sector, for purchases of Waxie products for the Fiscal Year 2014/15. Subsequently, the City Council has authorized the use of NIPA for the procurement of Waxie products every year since. Staff is seeking authorization for continued use of the NIPA for purchases of Waxie products.
It is recommended that the City forgo its separate bidding process and utilize the bidding process conducted by the City of Tucson, Arizona, which served as the Principal Procurement Agency (lead agency) for the NIPA, and negotiated a contract with Network Services Company to obtain discounted pricing for about 1,400 Waxie products. These products may be purchased under the agreement by members of the NIPA, including the City of Diamond Bar, from Waxie Sanitary Supply as the local distributor for the Network Services Company. The NIPA is an intergovernmental cooperative purchasing alliance that procures contracted goods and services through a Request for Proposal (RFP) competitive solicitation process conducted by a public agency/governmental entity. The procurement process employed by the NIPA includes the following:
1. The lead agency prepares a competitive solicitation, incorporating language to make the agreement accessible nationally to agencies in states that allow intergovernmental (i.e., "piggyback") contract usage.
2. The lead agency issues the solicitation and any required amendments and notifications‚ and conducts pre-proposal conferences and/or meetings.
3. Interested suppliers respond to the solicitation.
4. The lead agency evaluates the responses, negotiates the final terms and conditions, and ultimately awards the master agreement.
The NIPA procurement process is similar to the City's formal bidding procedures, which makes master agreements appropriate for "piggybacking" for purchases of Waxie products included in the City of Tucson and Network Services Company master agreement.
The City's Purchasing Ordinance requires that participation in a governmental purchasing program be authorized by Council resolution. The Purchasing Ordinance also requires City Council approval for purchases from a single vendor in a fiscal year in excess of $45,000. Staff anticipates expenditures of $65,000 for Waxie products during Fiscal Year 2023/24.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Resolution as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.16.a Resolution No. 2023-24