TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:March 14, 2023
SUBJECT: Cooperative Purchasing Agreement for Office Supplies RECOMMENDATION:
1. Approve piggyback agreement with ODP Solutions, LLC (Boca Raton, FL), using the Region 4 Education Service Center (ESC), Houston, TX, agreement through OMNIA Partners, for office supplies, related products, and services through June 30, 2024, and authorize City Manager to sign Participating Addendum in substantially the form as attached.
2. Authorize expenditure not-to-exceed $90,000 total from various department accounts for Office Supplies (3110) and Paper (3113).
3. Find that this action is not a project as defined under the California Environmental Quality Act Guidelines.
FINANCIAL IMPACT:
No Additional Funding Requested. Funding is approved in the Adopted FY 2022-23 Operating Budget from various Funds. The additional funds for the remaining contract term will be requested during the upcoming biennial budget process.
BACKGROUND:
The City has been operating a stockless inventory process for the past 24 years.
Orders for office supplies and paper are placed by various City departments via the internet directly with the vendor and are delivered the next business day. This has proven to be an efficient process for obtaining office supplies and eliminates the need for an on-site City warehouse for office supplies.
Important considerations for this type of service include internet ordering, a user- friendly website, free next-day delivery, a large stock inventory, ease of obtaining
Cooperative Purchasing Agreement for Office Supplies
March 14, 2023
usage reports, staff training, local sales representatives, and regularly scheduled business reviews by the sales representatives. Although individual orders are under the dollar threshold for City Council approval, combined dollars spent Citywide meets the $75,000 threshold requiring City Council approval of the contract.
In December 2014, City Council approved the use of WSCA-NASPO cooperative purchasing program which utilized the State of Oregon’s contract for purchase of office supplies from OfficeDepot/OfficeMax. That contract expires March 31, 2023, resulting in the need for a new contract.
DISCUSSION/ANALYSIS:
Pursuant to Thousand Oaks Municipal Code (TOMC) Section 3-10.203(b), the City may “piggyback” onto, or join, an existing written purchase contract obtained through a competitive bidding process prepared and awarded by another local, state, or federal government agency. For office supplies, cooperative programs generally afford better pricing based on their aggregate purchasing volume.
In December 2018, Region 4 ESC, Houston, TX issued a competitive solicitation RFP No. 19-03 for Office Supplies, Related Products, and Services which allows other agencies to award a contract at the same prices, terms, and conditions. On April 23, 2019, Region 4 ESC awarded their office supplies contract to Office Depot, Inc for a contract term of five years ending on June 30, 2024, with an option to renew for five additional one (1) year periods through June 30, 2029. As of May 1, 2022, the Region 4 ESC agreement was amended to allow Office Depot to assign all its rights, title, and interest under the Agreement to ODP Business Solutions, LLC.
To ensure that ODP Business Solutions continued to provide the City beneficial prices, staff compared Office Depot’s 2014 pricing under the WSCA-NASPO agreement to the current ODP Business Solutions pricing under the OMNIA Partners agreement with Region 4 ESC. Overall, pricing was comparable. Staff further reviewed other cooperative contracts with ODP Solutions and concluded that the OMNIA Partners Region 4 ESC contract best met the City’s service needs.
For these reasons, staff recommends entering into a Participating Addendum (Attachment #1) with OMNIA Partners Region 4 ESC to piggy-back onto their ODP Business Solutions contract.
Cooperative Purchasing Agreement for Office Supplies
March 14, 2023
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Grace Ng, Purchasing Supervisor
Attachment:
Attachment #1 - ODP Business Solutions/OMNIA Region 4 ESC Participating Addendum
FIN: 370-10\gn\H:\COMMON\Council\2023\Administration\031423 Office Supplies Staff Report.docx