TITLE
Recommendation to adopt Specifications No. PA-02209 and award contract to Waxie's Enterprises, Inc., dba Waxie Sanitary Supply, to furnish and deliver custodial supplies, in the estimated annual amount of $550,000 for a period of one year, with the option of renewing for one additional one-year period, at the discretion of the City Manager, with the option of adding expenditures up to 10 percent (or $55,000) above the annual contract amount, if necessary and if funds are available, plus extend the existing interim contract with Waxie Sanitary Supply through September 30, 2009; and increase the contract amount by $150,000 to cover expenditures made during the bidding process. (Citywide)
DISCUSSION
City Council approval is requested to enter into an annual contract for custodial supplies to support ongoing custodial maintenance needs at various City facilities and to support "green" and sustainable product usage. The contract takes into account annual estimated Citywide quantities, based on historical expenditures to secure pricing at the highest volume discount available. Based on the recent economic conditions, the Department of Financial Management, Purchasing Division, determined that it would be in the best interest of the City to choose to not exercise the renewal option on the current contract, which expired March 31, 2009. By re-bidding, the City of Long Beach stands to achieve costs savings through fixed price contracting, better product selection, and standardization of product availability. An interim contract was implemented during the bidding process.
Departments using this contract include Public Works; Parks Recreation & Marine; Health & Human Services; Airport; Gas & Oil; Fire; Police; Technology Services; Water and Harbor. Custodial supplies are essential for maintaining both City work areas and public facilities.
The bid was advertised on June 12, 2009, and 167 potential bidders specializing in custodial supplies were notified; 33 are Woman-owned Business Enterprises (WBEs), 43 are Minority-owned Business Enterprises (MBEs), 38 are certified Small Business Enterprises (SBEs) and eight are Long Beach businesses. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.lonQbeach.Qov/purchasinQ. A bid announcement was also included in the Purchasing Division's weekly update on Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. Twenty-two potential bidders included in the Purchasing Division's weekly update on Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. Twenty-two potential bidders attended the Bidder's Conference and ten bids were received. Bids were opened on July 21,2009. Waxie's Enterprises, Inc., dba Waxie Sanitary Supply, of Santa Ana, CA, (not an MBE, WBE, local or SBE) was the lowest responsible bidder
This matter was reviewed by Deputy City Attorney Amy R. Burton on September 2, 2009 and by Budget and Performance Management Bureau Manager David Wodynski on September 1,2009.
SUSTAINABILITY
In keeping with the City's Green Purchasing Policy, the bid specifications asked bidders to provide products that are environmentally-friendly, organic, plant-based, and refillable or reusable when applicable.
· Environmental benefits - Using green cleaning products helps to reduce the amount of toxic chemicals that collect in our indoor environments. This will help to make our City's buildings healthier spaces for our employees and the public.
· Energy security benefits - Purchasing products that are manufactured locally reduces energy in distribution. Waxie Sanitary Supply has all of their private label products manufactured in Orange County, CA. Also, the brand of garbage bags liners that the City will be purchasing is manufactured in Orange County, CA.
· Economic benefits - In addition to the economic benefits of purchasing items that are manufactured locally, when properly used, many green products can save money. When factoring in dilution ratios, many green products are less expensive than their traditional counterparts.
Quality benefits - With the increase in use and availability of green products, many improvements have been made to their cleaning capabilities. Our facilities maintenance staff tested several green products and determined that they are suitable for use.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-02209 and award the contract concurrently is requested on September 22, 2009 to ensure that a contract is in place exped itiously.
City Council approval is also being requested to increase Contract No. 29996 with Waxie's Enterprises, Inc., dba Waxie Sanitary Supply, in the amount of $150,000, to purchase and deliver custodial supplies, thereby avoiding any interruption of ongoing custodial maintenance during the procurement process.
FISCAL IMPACT
The cost of this new contract, in the estimated amount of $550,000 annually, is budgeted in various participating departments' budgets. The City will have the option of adding expenditures up to 10 percent (or $55,000) above the annual contract amount, if necessary and if funds are available.
The requested increase of the previous contract, in the amount of $150,000, is allocated in the various participating departments' Fiscal Year 2009 budgets. The departments utilizing this contract will be responsible for managing these expenditures within their current adopted budgets.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |