Fremont City Council Meeting: 06/17/25 07:00 PM
3300 Capitol Avenue Div/Dept: Purchasing
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5473) DOC ID: 5473
Updated: 6/12/2025 9:40 AM by Dina Lewis Page 1
INDUSTRIAL SUPPLIES AND EQUIPMENT - Authorize the City Manager, or Designee, to Execute a Purchase Order through a Cooperative Agreement with Grainger to Provide Industrial Supplies and Equipment
Contact Persons:
Name: Janice Becerra-Scola Mario Rosas
Title: Buyer Purchasing and Accounts Payable
Division Manager
Div/Dept: Purchasing Finance Department
Phone: 510-494-4623 510-494-4637
E-Mail: [email protected] [email protected]
Executive Summary: The City of Fremont’s (“City”) purchase order for industrial supplies and equipment, procured through a cooperative contract, has expired. NASPO ValuePoint led a competitive solicitation process and has awarded a new cooperative contract to Grainger, valid through August 2030. Staff recommends that the City Council authorize the City Manager, or designee, to execute a new purchase order with Grainger under this contract, in an amount not-to-exceed $140,000 per fiscal year, through June 30, 2030.
BACKGROUND: Various City departments have an ongoing need to purchase industrial supplies and equipment to support routine maintenance and operations of City buildings, parks, and fleet vehicles. Commonly purchased items include air filters, hand tools, electrical components, and vehicle maintenance parts. Since 2017, the City has maintained a citywide purchase order with Grainger for these items through a cooperative agreement.
Grainger is not the City’s exclusive supplier for these items, and departments may also purchase from other vendors. However, Grainger is a preferred provider for commonly purchased items due to its broad selection, competitive pricing, and reliable customer service. Based on recent expenditure trends, staff anticipates annual spending to approach $140,000, an amount which requires City Council approval.
DISCUSSION/ANALYSIS: Fremont Municipal Code Section 3.20.310(b) authorizes the City to dispense with competitive bidding and use the terms of another governmental contract (“piggyback”) to buy equipment or services. To qualify, the governmental contract must have resulted from procurement methods similar to those required by the City’s Purchasing Ordinance and the terms of the governmental contract must be consistent with the City’s contract terms.
NASPO ValuePoint is a public entity with a national cooperative procurement program offering its member agencies access to publicly solicited contracts. As a member of NASPO ValuePoint, the City has the opportunity to realize cost savings by utilizing existing NASPO ValuePoint contracts.
Pursuant to a public solicitation in 2024, NASPO ValuePoint contracted with Grainger to provide industrial supplies and equipment through August 31, 2030. The solicitation method meets the requirements of the City’s Purchasing Ordinance and the terms of purchase in the Council Staff Report (ID # 5473) Meeting of June 17, 2025 Updated: 6/12/2025 9:40 AM by Dina Lewis Page 2
recommended City purchase order with Grainger are materially the same as those of the Grainger contract with NASPO ValuePoint. As specified in the Purchasing Ordinance, the Finance Director and the City Manager have approved the proposed use of the NASPO ValuePoint contract with Grainger.
FISCAL IMPACT: Departments that utilize this citywide purchase order have included appropriate funding for industrial supplies and equipment in the FY 2025/26 Adopted Operating Budget.
ENVIRONMENTAL REVIEW: N/A
ATTACHMENTS: None
RECOMMENDATION: Authorize the City Manager, or designee, to execute a Purchase Order with Grainger, in an amount not-to-exceed $140,000 per fiscal year, through June 30, 2030.