TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 14, 2025
SUBJECT: Cooperative Purchasing Agreement for Online Marketplace RECOMMENDATION:
1. Authorize City Manager to execute participating addendum using the Prince William County Public Schools, VA uniform Contract No. R-TC-17006 through Omnia Partners with award to Amazon Services, LLC/Amazon Business (Amazon) (Seattle, WA) for online marketplace for the purchase of products and services beginning January 1, 2025, through January 18, 2026, with an optional 2-year renewal through January 18, 2028, based on City Attorney’s Office review and approval as to form.
2. Authorize expenditure not-to-exceed $250,000 annually from various department accounts.
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. Funding is included in the Adopted FY 2024- 25 Operating Budgets from various funds. The additional funds for the remaining contract term will be requested during the upcoming biennial budget process.
BACKGROUND:
The City currently purchases a variety of items such as office supplies, computer supplies, fleet parts, maintenance supplies, tools, and equipment online with Amazon. As an online marketplace for various items, Amazon often provides the best pricing and availability of these products with quick shipping.
Pursuant to Thousand Oaks Municipal Code (TOMC) Section 3-10.203(b), the City
Cooperative Purchasing Agreement for Online Marketplace January 14, 2025
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 an online marketplace of a wide variety of items, cooperative programs generally afford better pricing based on their aggregate purchasing volume.
DISCUSSION/ANALYSIS:
In September 2016, Prince William County Public Schools (PWCS) issued a competitive Request for Proposals (RFP) to establish a national cooperative contract for an online marketplace for the purchase of goods and services, on behalf of all states, local governments, school districts, higher education institutions, other governmental entities, and nonprofit organizations. PWCS awarded Amazon an initial five-year agreement, Contract No. R-TC-17006 through OMNIA Partners, from January 19, 2017, through January 18, 2022, with the option to renew for three additional two year periods through January 18, 2028.
The contract was renewed twice through January 18, 2026.
The Amazon marketplace provides a wide variety of products from office, IT, janitorial, maintenance, and repair supplies, including hard-to-find items such as specific fleet parts. Amazon provides competitive pricing in showing the pricing between different sellers, product availability, and third-party seller ratings. As it is an open marketplace, the pricing and offers from different sellers can be quickly and easily compared. Free two-day shipping is also included. Amazon also offers organization and quantity discounts for products by combining the volumes of Participating Public Agencies to achieve cost effective pricing.
Although single purchases for departments are under the $75,000 dollar threshold for City Council approval in FY 2024-25 to date, combined dollars spent Citywide exceeds the $75,000 threshold, requiring City Council approval of the contract.
Due to the many benefits that Amazon provides, staff recommends entering into a Participating Addendum to utilize the Omnia cooperative agreement with Amazon.
City employees will only be allowed to purchase products through this cooperative contract and not services.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act (Attachment #1). City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially- interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
Cooperative Purchasing Agreement for Online Marketplace January 14, 2025
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
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: Andrew Becker, Purchasing Supervisor
Attachments:
Attachment #1 – Levine Act Form
FIN: 370-10\gn\H:\COMMON\Council\2025\Administration\011425 Online Marketplace Staff Report