City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01283 10/24/2023 Consent Item 15.
Authorize Alternate Procurement Method to Create a List of Qualified Mail Preparation and Distribution Contractors and Waive Local Business Enterprise Participation Requirement (Two-thirds Vote Required)
File ID: 2023-01283
Location: Citywide
Recommendation: Pass a Motion: 1) allowing the use of a Request for Qualifications (RFQ) method to award contracts to Qualified Mail Preparation and Distribution Contractors for Citywide use; and 2) waiving the Local Business Enterprise (LBE) Participation requirement.
Contact: Gary O’Neill, Contracts and Compliance Specialist, (916) 808-7432, [email protected]; Dayana Reyes Zanaska, Procurement Manager, (916) 808-5524, [email protected]; Department of Finance Presenter: None.
Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: City departments distribute communications via mail. A contractor, or contractors, is required to assist with the preparation of the pieces to be mailed, including printing, and to pre-sorting to obtain the best postal rates and to delivery to the United State Postal Service for distribution. The current contract with KP LLC of West Sacramento expires on February 29, 2024. As such, staff must solicit for a new contract or contracts. The use of RFQ process to solicit vendors provides the ability to have multiple qualified contractors to consider when it becomes necessary to mail out a information to the public.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code 3.56 regarding contracts for the purchase of nonprofessional services.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): This report concerns
File ID: 2023-01283 10/24/2023 Consent Item 15.
administrative activities and governmental fiscal 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 Guidelines Section 15060(c)(3)).
Sustainability: Paper to be used in these projects is to conform to the City’s Sustainable Purchasing Policy.
Commission/Committee Action: None.
Rationale for Recommendation: Using an RFQ process will allow staff to have multiple qualified contractors to consider when it is necessary to mail out a communication to the public. Factors such as the paper size and stock availability, the quantity of printed pieces, and the delivery schedule affect the cost for a project. Therefore, it is difficult to award a multi-year contract through the bid process. An RFQ is a two-step process. Step one is to develop a list of qualified contractors. In Step two, the department will work with the contractors to determine the best price and schedule for their unique project. Projects will then be awarded through a purchase order to the qualified contractor who offers the best value to the department.
Financial Considerations: Funding for these contracts is included in fiscal year 2023/24 operating budgets and/or capital improvement project budgets of the departments that are utilizing this service.
Funding for subsequent years is subject to Council approval.
Local Business Enterprise (LBE): The RFQ will have a five-point LBE Preference. Staff seeks to waive the LBE Participation requirement that stipulates that a contractor must qualify as an LBE to be awarded a contract. The major mail distribution hub for the United States Postal Service is in West Sacramento. Some of the potential contractors are located close to this facility for logistical purposes.
Enforcing the LBE Participation requirement would mean that they are not eligible for a contract.