Finance & Management Services
www.santa-ana.org/finance
Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 20, 2024
TOPIC: Amazon Online Marketplace Purchase of Goods
AGENDA TITLE
Citywide Purchase Order Contract to Amazon Capital Services, Inc. for the Online Marketplace Purchase of Goods (Specification No. 24-091) (General Fund and Non- General Fund)
RECOMMENDED ACTION
Award a citywide purchase order contract to Amazon Capital Services, Inc. for online marketplace purchases of goods for a three and-a-half year term beginning August 1, 2024 and expiring January 18, 2028, for an annual amount not to exceed $650,000.
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Since 2019, the City has incorporated Amazon Capital Services, Inc. as a trusted and reliable vendor to provide miscellaneous arts and crafts supplies, small technology- related accessories, hard to find and specialty items, as well as items that are currently unavailable under existing City contracts. In 2022, the City expanded the Amazon Online Marketplace to all City agencies, allowing approved City staff to create shopping carts and initiate returns. This has created efficiencies to secure department orders at a much quicker pace. Amazon’s Business Prime online ordering system also provides tracking and payment information for the requesting agency and spend analysis reports for Purchasing Division staff.
Currently, there are over 72,690 vendors located within Orange County selling on the Amazon Marketplace with over 5,145 located in Santa Ana. Amazon Capital Services, Inc. has also created a campaign to highlight Santa Ana vendors as a first-choice option, then Orange County vendors as a second choice, followed by various sellers while departments search for items.
With the expansion of the Citywide Online Amazon Marketplace in 2022, orders for ergonomic chairs and related equipment have steadily increased due to their high quality and value pricing. The Human Resources Department, Risk Management Division utilizes this contract for the procurement of ergonomic equipment on a frequent
Amazon Online Marketplace Purchase of Goods
August 20, 2024
4 4
9 5
basis. Additionally, in Fiscal Year 2023-24, the Police Department began purchasing all required materials and apparel for incoming SAPD academy recruits under the direction of the Orange County Sheriff’s Department through the Amazon Online Marketplace for the purpose of County-Wide standardization. A need for additional resources has also been identified due to a recent upsurge of purchases of community outreach and other event giveaways and activity-related arts and craft items by the Parks, Recreation and Community Services Agency, Library, and Water Resources Division.
Lastly, with the closure of the City’s Stores facility effective June 30, 2024, departments will now rely heavily on several citywide contracts, including Amazon Marketplace, to purchase approved items that were previously provided by Stores and are required for daily operations, including personal protective equipment (PPE), fleet degreaser, disinfectant supplies, batteries, and miscellaneous safety equipment (gloves, goggles, etc.).
Santa Ana City Ordinance No. NS-3041 authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. Omnia Partners, a cooperative government purchasing agency, awarded a contract to Amazon Capital Services, Inc. (R-TC-17006) as a result of open, competitive bidding on behalf of its members, which includes government agencies.
Purchasing staff researched available procurement options and determined that Amazon Capital Services, Inc. meets the City’s immediate needs and can provide non- contracted miscellaneous items utilized by citywide departments. This contract offers convenient options including free expedited shipping with as soon as same-day and next-day delivery, the opportunity to purchase hard to find, discontinued, or obsolete manufacturer supplies, many other volume discounted items, and a simple return process. By leveraging the procurement power through cooperative purchasing, the City of Santa Ana is able to obtain nationally vetted, high quality products at competitive volume pricing, and in accordance with the City’s existing Purchasing Guidelines.
Therefore, staff recommends awarding a contract to Amazon Capital Services, Inc. for an estimated annual amount not-to-exceed $650,000, and a total contract not-to exceed amount of $2,275,000 during the entire contract term.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding is available in the FY 2024-25 budget for an amount of $650,000 in various departmental Miscellaneous Operating Expense account (no. 63001) and Operating Materials & Supplies Buildings/Grounds (no. 63200). Future fiscal year funding for a total amount not to exceed $2,275,000, including any remaining amounts not spent in previous fiscal years during the term of the contract, will be included in the proposed budgets for City Council consideration. Prior to utilizing the citywide contracts, the Amazon Online Marketplace Purchase of Goods
August 20, 2024
4 4
9 5
requesting departments will follow the Purchasing Policies and Procedures (Policy) and ensure funds are available. Upon successful completion of the fiscal review, the Purchasing Division will approve orders in accordance with the Policy.
The City’s total annual budget for miscellaneous operating materials and supplies is $21,249,330, of which the contract with Amazon Capital Services would only represent approximately three percent (3%) of the City’s expenditures for these accounts.
EXHIBIT(S)
1. Omnia Executive Summary of Cooperative Contract #R-TC-17006 Submitted By: Kathryn Downs, Finance and Management Services Executive Director Approved By: Alvaro Nuñez, City Manager