City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-02075 1/14/2025 Consent Item 15.
Cooperative Purchase Agreement(s): Purchase of Maintenance, Repair and Operations (MRO) Supplies and Related Services; Public Safety and Emergency Preparedness Equipment and Related Services; Equipment Rental and Related Services; and Electrical Supplies and Accessories [Published for 10-Day Review on 1/03/2025]
File ID:2024-02075
Location: Citywide
Recommendation: Pass a Motion: 1) increasing the not-to-exceed amount of Omnia Partners Cooperative Agreement No. 2018-000208 with Fastenal for MRO supplies by $2,000,000 through June 30, 2026 for a total not to exceed amount of $6,800,000; 2) increasing the not-to-exceed amount of Omnia Partners Cooperative Agreement No. 4400008495 with Mallory Safety Supply for Emergency Preparedness Equipment and Related Services $2,000,000 through September 30, 2028 for a total not to exceed amount of $3,700,000; 3) increasing the not-to-exceed amount of Sourcewell Cooperative Agreement No. 0362320-URI with United Equipment Rentals for Equipment Rental & Related Services by $250,000 through August 31, 2025 for a total not to exceed amount of $750,000; 4) increasing the not-to-exceed amount of Omnia Partners Cooperative Agreement No. EV2370 with Graybar for Electrical Supplies and Accessories by $2,500,000 through January 31, 2029 for a total not to exceed amount of $5,100,000; and 5) resetting the City Manager’s authority to issue Change Orders for these Agreements.
Contact: Stacy Larkin, Contract & 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-Extension of OMNIA Agreement 2018-000208
3-Extension of OMNIA Agreement 4400008495
4-Extension of Sourcewell Agreement 0362320-URI
5-Extension of OMNIA Agreement EV2370
File ID: 2024-02075 1/14/2025 Consent Item 15.
Description/Analysis
Issue Detail: 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. City departments use cooperative purchase agreements to save time and to maximize cost savings to obtain goods and services. These contracts are utilized by most city departments to support ongoing operations in a cost-effective and streamlined manner.
With Council approval, the City has been using the cooperative agreements listed below for the identified purchases.
VENDOR PURCHASE DESCRIPTION AVERAGE ANNUAL
SPEND
Fastenal Maintenance, Repair and Operations
(MRO) Supplies and Related Services
$800,000
Mallory Safety Supply Public Safety and Emergency
Preparedness Equipment and Related
Services
$300,000
United Equipment Rentals Equipment Rental and Related Services $250,000 Graybar Electrical Supplies and Accessories $450,000
Policy Considerations: The recommendations in this report are in accordance with City Code Section 3.56.240 which authorizes the City Manager, when it’s advantageous to the City, to use cooperative purchasing agreements approved by the Council to purchase supplies or nonprofessional services through legal contracts of other governmental jurisdictions or public agencies, eliminating the need to perform additional competitive bidding by the City of Sacramento.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d.) mandate that unless waived by a 2/3 vote of the Council, all labor agreements and all agreements greater than $1 million shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on 1/03/2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act (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)).
File ID: 2024-02075 1/14/2025 Consent Item 15.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Procurement Services Division is responsible for the implementation and management of citywide contracts. In an ongoing effort to maximize cost savings and efficiently use 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 costs of procurement, staff considers 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 Services 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. Use of the cooperative agreements identified above will provide additional cost savings for the City.
Staff recommends Council approve the requested increases to the not-to-exceed amounts on these cooperative purchasing agreements to account for anticipated spend through their respective terms.
The cooperative purchasing agreements were competitively bid and awarded through the lead agencies; and the resulting contracts are made available to other agencies through OMNIA and Sourcewell. These supplies are needed for the City to support running repairs, preventative maintenance and unscheduled maintenance tasks throughout the various facilities.
Financial Considerations: Departments will use their operating budgets in the appropriate fiscal year and project funding to purchase these MRO products as required and as budget allows. Each division will submit their own purchase orders to authorize the purchases as required.
Local Business Enterprise (LBE): The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar programs.