Item 385/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 10/28/2025
Subject: Authorization for an increase to the purchase order with Grainger for hardware supplies. (Cost: $95,000)(Action Item)
OBJECTIVE
For City Council to amend the existing blanket purchase order with Grainger to allo w an additional $95,000 for the purchase of materials and supplies.
BACKGROUND
The Public Works Department provides a wide variety of repairs and renovations to all City buildings and infrastructure related to water, sewer and streets. This type of work requires the purchase of various hardware supplies. These purchases include small appliances, building materials, heating and air conditioning, irrigation equipment, plumbing supplies, safety equipment, painting and various tools/equipment. A blanket purchase order in the amount of $150,000 was issued in March 2025. This blanket purchase order helps ensure no interruptions in the day-to-day operations of the department services. Within the past year, expenses have increased due to price increases. The purchase order is anticipated to be exhausted before the term ending in February 2026.
DISCUSSION
Sourcwell nationally solicits, evaluates and awards contracts through a competitive bid process.
As a member of Sourcewell, the City is able to utilize these bid awards for cooperative purchasing agreements and forgo the bidding process per Municipal Code 2.50.060 (E). Staff recommends piggybacking on the results of a Sourcewell competitive bid, Sourcewell Contract #091422-WWG. This price includes all applicabl e tax and installation charges. The results deemed Grainger as the lowest responsive bid. The increase to the purchase order would be in the amount of $95,000 for a total of $245,000 for the remaining term that ends in February 2026, with an option to renew for two additional one-year terms dependent upon Sourcewell’s initiation of renewal terms.
Item 385/2025
FINANCIAL IMPACT
The requested increase of $95,000 to the blanket purchase order (PO) with Grainger will bring the total PO amount to $245,000. No addition al appropriation is required, as sufficient funding is included in each user department’s adopted FY 2025-26 operating budget.
RECOMMENDATION
It is recommended that the City Council:
Approve dispensing of the bidding process per Municipal Code 2.50. 060 (E), the purchase price and other terms are similar to those in a contract awarded for the same goods and/or services by another public agency or government purchasing cooperative organization based on a competitive process; Authorize the use of Sourcewell Cooperative Purchasing Contract #091422 - WWG;
Authorize the Finance Director, or designee, to amend the blanket purchase order with Grainger by allocating an additional $95,000 for a total of $245,000 for the purchase of materials and supplies; and
Authorize to extend purchase order terms for any future extensions should the Sourcewell contract be amended.
By: Samuel Kim, P.E.
Deputy Public Works Director/Water Services Manager