City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01318 10/24/2023 Consent Item 7.
Supplemental Contracts: Citywide Ergonomic Office Furniture and Equipment File ID: 2023-01318
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 2 to extend the current ergonomic office furniture supply contracts through November 19, 2024 with no change to the not-to-exceed amounts for City Agreements: 1) C2018-1679 with Burkett’s Office Supplies in the amount of $250,000, Inc.; 2) C2018 -1680 with Office Relief Incorporated in the amount of $500,000; 3) C2018-1681 with One Ferrari Workplace, LLC dba United Corporate Furnishings in the amount of $500,000 and 4) C2018-1682 with River City Office Supply in the amount of $150,000.
Contact: Stacy Larkin, Contract and Compliance Specialist, (916) 808-5744, [email protected]; Dayana Reyes-Zanaska, Procurement Services Manager, (916) 808- 5524, [email protected]; Peter Coletto, Director of Finance, (916) 808-5416, [email protected], Department of Finance
Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Contract: Office Relief Incorporated
3-Supplemental Contract: River City Office Supply
4-Supplemental Contract: Burkett’s Office Supplies, Inc. 5-Supplemental Contract: One Ferrari Workplace, LLC dba United Corporate Furnishings Additional Description/Analysis
Issue Detail: In 2018, the Human Resources Department released a Request for Bid which resulted in the execution of four contracts with different vendors to supply ergonomic office furniture and equipment. Council approved these four contracts with the total not to exceed amount of $400,000 on November 20, 2018, through motion 2018-0357 which included language that allowed other departments throughout the City to piggyback on the original bid in order to enter into their own contracts to purchase ergonomic furniture.
File ID: 2023-01318 10/24/2023 Consent Item 7.
In lieu of requiring all departments to have individual contracts for the purchase of ergonomic office furniture, Procurement Services determined it was in the best interest of the City to supplement the current contracts so that they may be used citywide. Motion 2019-0123 was approved on May 14, 2019, which increased the total not-to-exceed amount on all contracts to $1.4m and allowed for Citywide use. To date, the City has expended approximately $408,750 of that amount across all four contracts.
While preparing these contracts for the final supplement, it was discovered that at some point in the initial approval process, the City modified the contract term thereby creating a discrepancy in the contract duration listed in the contracts and the Council report approving them. The contract duration is listed “…for a period of five (5) years from the date of Council approval of the contract. If mutually agreeable, the contract may be extended for an additional period of one (1) year.” which is a total term of six (6) years; however, original Motion No, 2018-0357 approved a Contract Duration for “…a three year term….with the option to extend for up to two additional one-year terms…” which only represents five (5) years.
This action is to request Council approval for Supplemental Agreements to extend the time of performance for an additional year through November 19, 2024, consistent with the language contained in the original contracts. This discrepancy was discovered as the supplements were being prepared to be executed for their final term.
It’s the opinion of the Procurement Department that it is in the best interest of the City to honor the intended terms of the agreements through their sixth and final year, as the needs addressed by the contracts remain. Prior to expiration of these contracts, the Procurement Division will conduct a new solicitation and will award new contracts for ergonomic equipment to be used Citywide.
Policy Considerations: City Council approval is required to extend service and supply contracts per Section 12(a)(2) of Administrative Policy 4001.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines15060(c)(3)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2023-01318 10/24/2023 Consent Item 7.
Rationale for Recommendation: On November 20, 2018, Council passed Motion 2018-0357, approving contracts with four furniture suppliers who responded to Bid B18081324005 for ergonomic furniture and equipment. On January 31, 2019, Procurement Services issued Sourcing Event B19061511010 by invitation only to the same four vendors currently under contract. The sourcing event issued by Procurement Services piggybacked on Human Resource’s original bid and expanded the list of items that can be purchased.
On May 14, 2019, Council passed Motion 2019-0123, approving Supplemental contracts for each vendor so they can be used on a citywide basis and to increase the not-to-exceed values to reflect anticipated citywide spend over the life of these contracts. The proposed Supplemental Agreements will extend the time of performance only through November 19, 2024.
Administrative Policy (AP) 4001 allows for Council to approve the extension of multi-year contracts that serve in the best interest of the City. Approval of the supplemental agreements is in the best interest of the City as the remaining not-to-exceed amounts are sufficient to fund the additional term and will allow Procurement Services the appropriate time to complete a new solicitation. Extension of these agreements aligns the term with the original intent as approved by Council.
Generally, “No contract term shall extend beyond a total term, including extensions and renewals, of five years . . .”(AP-4001, §12). That said, “[f]or contracts of $250,000 or more, a longer term may be approved by the City Council.” (Id. at §12(a)(2).)
The City has a responsibility to offer ergonomic equipment for departments to purchase for their employees as needed. Therefore, it the opinion of the Procurement Department that it is in the best interest of the City to honor the intended terms of the agreements through their sixth and final year, as the needs addressed by the contracts are still present. Prior to expiration of these contracts, the Procurement Division will conduct a new solicitation and will award new contracts for ergonomic equipment to be used Citywide.
Financial Considerations: Supplemental Agreements No. 2 will not increase the contracts not-to- exceed amounts. Purchases will be made from various City departmental operating and project budgets. There is sufficient funding in each of the departments’ Fiscal Year 2023-24 budgets to fund services through June 30, 2024. Funding for this agreement in future fiscal years will be subject to the availability of sufficient funds in the adopted fiscal year.
Local Business Enterprise (LBE): River City Office Supply, Burkett’s Office Supplies Incorporated, and United Corporate Furnishings are all LBE. Office Relief Incorporated is not a LBE.
CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ Office Relief, Inc.N/A02Finance11/19/202411/20/2018N/AStacy LarkinB18081321005 / [email protected]$0Citywide Ergonomic Furniture and Equipment2023-01318YESStacy LarkinC2018-1680$500,000
SUPPLEMENTAL CONTRACT
TERM EXTENSIONProject Title and Job Number: Citywide Ergonomic Furniture and Equipment Date: September 26, 2023 Purchase Order #: Supplemental Contract No.: 2018-1680-02 The City of Sacramento ("City") and Office Relief ("Contractor"), as parties to that certain Ergonomic Office Furniture and Equipment Agreement designated as Contract Number 2018-1680 including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Time of Performance set forth in Section II, Part C. Technical Specifications/Plans/Other Requirements of the Contract is amended as follows: The term of this Contract is extended to the period of November 20, 2018 through November 19, 2024. 2. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor is duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 3. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as supplemented and modified by this supplement. Approval Recommended By: Approved As To Form By: _______________________________________________ _________________________________________________ Project Manager City Attorney Approved By: Attest: _______________________________________________ ________________________________________________ Contractor City Clerk Approved By: _______________________________________________ Signatory, City of Sacramento CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ River City Office SupplyN/A02Finance11/19/202411/20/2018N/AStacy LarkinB18081321005 / [email protected]$0Citywide Ergonomic Furniture and Equipment2023-01318YESStacy LarkinC2018-1682$150,000
SUPPLEMENTAL CONTRACT
TERM EXTENSIONProject Title and Job Number: Citywide Ergonomic Furniture and Equipment Date: September 26, 2023 Purchase Order #: Supplemental Contract No.: 2018-1682-02 The City of Sacramento ("City") and River City Office Supply ("Contractor"), as parties to that certain Ergonomic Office Furniture and Equipment Agreement designated as Contract Number 2018-1682 including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Time of Performance set forth in Section II, Part C. Technical Specifications/Plans/Other Requirements of the Contract is amended as follows: The term of this Contract is extended to the period of November 20, 2018 through November 19, 2024. 2. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor is duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 3. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as supplemented and modified by this supplement. Approval Recommended By: Approved As To Form By: _______________________________________________ _________________________________________________ Project Manager City Attorney Approved By: Attest: _______________________________________________ _______________________________________________ Contractor City Clerk Approved By: _______________________________________________ Signatory, City of Sacramento CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ Burkett's Office Supplies, Inc.N/A02Finance11/19/202411/20/2018N/AStacy LarkinB18081321005 / [email protected]$0Citywide Ergonomic Furniture and Equipment2023-01318YESStacy LarkinC2018-1679$250,000
SUPPLEMENTAL CONTRACT
TERM EXTENSIONProject Title and Job Number: Citywide Ergonomic Furniture and Equipment Date: September 26, 2023 Purchase Order #: Supplemental Contract No.: 2018-1679-02 The City of Sacramento ("City") and ("Contractor"), as parties to that certain Ergonomic Office Furniture and Equipment Agreement designated as Contract Number 2018-1679 including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Time of Performance set forth in Section II, Part C. Technical Specifications/Plans/Other Requirements of the Contract is amended as follows: The term of this Contract is extended to the period of November 20, 2018 through November 19, 2024. 2. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor is duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 3. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as supplemented and modified by this supplement. Approval Recommended By: Approved As To Form By: _______________________________________________ _________________________________________________ Project Manager City Attorney Approved By: Attest: _______________________________________________ _________________________________________________ Contractor City Clerk Approved By: _______________________________________________ Signatory, City of Sacramento CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ One Workplace Ferrari, LLC dba United Corporate FurnishingsN/A02Finance11/19/202411/20/2018N/AStacy LarkinB18081321005 / [email protected]$0Citywide Ergonomic Furniture and Equipment2023-01318YESStacy LarkinC2018-1681$500,000
SUPPLEMENTAL CONTRACT
TERM EXTENSIONProject Title and Job Number: Citywide Ergonomic Furniture and Equipment Date: September 26, 2023 Purchase Order #: Supplemental Contract No.: 2018-1681-02 The City of Sacramento ("City") and One Workplace Ferrari, LLC dba United Corporate Furnishing ("Contractor"), as parties to that certain Ergonomic Office Furniture and Equipment Agreement designated as Contract Number 2018-1681 including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Time of Performance set forth in Section II, Part C. Technical Specifications/Plans/Other Requirements of the Contract is amended as follows: The term of this Contract is extended to the period of November 20, 2018 through November 19, 2024. 2. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor is duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 3. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as supplemented and modified by this supplement. Approval Recommended By: Approved As To Form By: _______________________________________________ _________________________________________________ Project Manager City Attorney Approved By: Attest: _______________________________________________ _________________________________________________ Contractor City Clerk Approved By: _______________________________________________ Signatory, City of Sacramento