TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with Fastenal Company, of Winona, MN, for furnishing and delivering fasteners and miscellaneous hardware, on the same terms and conditions afforded to Region 4 Education Service Center, of Houston, Texas, through The Cooperative Purchasing Network, in an annual amount of $223,000, with the option to add expenditures up to 10 percent (or $22,300), for a total annual amount not to exceed $245,300, for a period of one year, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Fastenal Company (Fastenal), for furnishing and delivering fasteners and miscellaneous hardware. The award represents the combined annual requirements as estimated by various City department users.
The Purchasing Division reviewed procurement options for fasteners and miscellaneous hardware. The Fastenal Company, Region 4 Education Service Center (ESC) agreement, through The Cooperative Purchasing Network (TCPN), was selected based on their competitive pricing, service levels, breadth of product offering, and local economic impact. Fastenal is able to manage high frequency, small volume, will call orders made via Purchase Orders for a wide variety of fasteners and hardware used for special projects that would be impractical to bid individually. Purchases under this contract are to be made at the Long Beach store, located on Airport Way. The TCPN contract was competitively bid in 2014 is valid until 2018, with two additional one-year extension options.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The use of cooperative purchasing contracts provides agencies with opportunities for greater efficiencies in acquiring goods, reduces the City’s administrative burden of conducting a competitive bid process, and provides greater cost savings by leveraging multiple-agency buying volumes.
This matter was reviewed by Deputy City Attorney Linda T. Vu on August 14, 2017 and by Assistant Finance Director Lea Eriksen on August 9, 2017.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and award a contract concurrently is requested on September 5, 2017, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual amount of this contract will not exceed $245,300, and is budgeted in various funds and departments. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for five employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A CONTRACT WITH FASTENAL COMPANY ON THE SAME TERMS AND CONDITIONS AFFORDED TO REGIONAL 4 EDUCATION SERVICE CENTER THROUGH THE COOPERATIVE PURCHASING NETWORK, FOR AN ANNUAL AMOUNT NOT TO EXCEED $223,000
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER