October 17, 2023
Finance Department
DATE: October 17, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Ofelia Alvarez, Senior Buyer
Subject: OMNIA Cooperative Purchase Agreements for Citywide Goods and Services for Fiscal Year 2023-24 to 2026-27
FINANCIAL IMPACT: Purchases will be made from various departmental operating budgets through various Cooperative
Purchasing Agreements. Funding for the purchases has
been included in the FY 2023-24 operating budgets.
Funding will be included in the operating budget for each of the next three fiscal years.
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
The City has ongoing needs to purchase goods and
services for various departments. City staff requests
approval to use Cooperative Purchase Agreements and
maximize cost savings and staff resources by sharing
contracting and purchasing efforts with other
governmental agencies.
AGENDA
REPORT
October 17, 2023
RECOMMENDED ACTION:
ADOPT a resolution approving the use of OMNIA
Cooperative Purchasing Agreements with Ari Phoenix,
Epic Business, Grainger, HD Supply, Herc Rentals,
Kimball Midwest, Ricoh, and The Home Depot in an
amount not to exceed $250,000 per year per vendor for
Fiscal Years 2023-24 to 2026-27– Finance Department
(Antonio Banuelos 510-620-6741/ Ofelia Alvarez 510-
620-6699). This item was continued from the October
3, 2023, meeting.
DISCUSSION:
The City has ongoing needs to purchase goods and services for various departments.
Finance staff conducted an analysis and prepared an estimate of the anticipated citywide purchases of a variety of related goods and services, including but not limited materials, equipment, vehicles, and apparatus. These purchases are necessary to ensure the continued delivery of programs and services citywide.
The Finance Director may arrange for the City to enter into an agreement (“Cooperative Purchasing Agreement”) with one or more local, city, county, state, federal or other public entity, other nonprofit association or group consisting of governmental entities, in order to cooperatively purchase supplies and services, including materials, equipment, vehicles and apparatus subject to specific requirements. [Richmond Municipal Code section 2.52.380(a)] The use of Cooperative Purchase Agreements maximizes cost savings and staff resources by sharing contracting and purchasing efforts with other government agencies. Utilizing cooperative purchasing agreements provides an opportunity for the City to obtain lower pricing through volume purchasing. As cooperative agreements reach expiration, they are automatically renewed allowing government agencies to continue to leverage cost savings.
OMNIA is a leading national government purchasing cooperative, providing world-class government procurement resources and solutions to local and state government agencies, school districts (K-12), higher education institutions, and nonprofits looking for the best overall supplier government pricing. OMNIA partners with many governmental agencies to offer cooperative purchasing contracts to other governmental agencies to economically procure services and supplies, pay less for products and services, and reduce administrative costs in developing contracts.
City staff request approval and spending authority to cover the estimated expenditures using Cooperative Purchasing Agreements, and the authority to substitute any of the listed cooperative agreements with the appropriate replacement agreement issued by the same cooperative organization, if that agreement expires during this purchase approval period. The Cooperative Purchasing Agreements and vendors that will be used to procure the related goods and services for Fiscal Year (FY) 2023-24 to FY 2026-27 are listed below:
October 17, 2023
OMNIA COOPERATIVE AGREEMENTS
Vendor Name
Cooperative
Agreement Description
ARI Phoenix
Contract
Region 14 ESC- TX
Contract # 05-57
Heavy-duty Transportation
Maintenance Equipment
Solutions and Related
Services
Epic Business
Essentials
Region 4 ESC-TX
R190301
Office Supplies, Related
Products and Services
Grainger Contract # 192163
Maintenance, Repair and
Operations & Industrial
Supplies
HD Supply Contract # 16154
Maintenance, Repair,
Operating Supplies,
Industrial Supplies &
Related Products and
Services
Herc Rentals Contract 2019000318
Equipment Rental and
Related Services
Kimball Midwest
Region 4 ESC-TX-
R192004
Maintenance, Repair, &
Operations (MRO)
Supplies & Equipment
Ricoh, USA Contract # 2021002788
Copiers-Multifunction
Devices, Printers,
Managed Print Services &
IT Solutions
The Home Depot Contract # 16154
Maintenance, Repair,
Operating Supplies,
Industrial Supplies and
Related Products and
Services
The recommendations in this report are in accordance with Richmond Municipal Code section 2.52.328, which authorizes the Director of Finance to utilize cooperative purchasing agreements to purchase supplies or services through legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement approach increases pricing competitiveness and lowers operating costs through volume purchasing. When comparing the administrative cost of procurement, staff considers
October 17, 2023
product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract. It is often more cost-effective to eliminate the cost and time spent on these administrative processes and purchase items and services through a cooperative purchasing program. The City has used both regional and national cooperative purchasing agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments and the Procurement Division to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
City staff members request approval to use OMNIA Cooperative Purchasing Agreements with Ari Phoenix, Epic Business, Grainger, HD Supply, Herc Rentals, Kimball Midwest, Ricoh, and The Home Depot in an amount not to exceed $250,000 per year per vendor for FY 2023-24 to FY 2026-27.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – ARI Phoenix Contract Packet
Attachment 3 – Epic Business Contract Packet
Attachment 4 – Grainger Contract Packet
Attachment 5 – HD Supply Contract Packet
Attachment 6 – Herc Rentals Contract Packet
Attachment 7 – Kimball Midwest Contract Packet
Attachment 8 – Ricoh, USA Contract Packet
Attachment 9 – The Home Depot Contract Packet