TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with W.W. Grainger, Inc., of Lake Forest, IL, for furnishing and delivering maintenance, repair, and operations supplies and related materials, on the same terms and conditions afforded to the City of Tucson, AZ, through Omnia Partners, in annual amount of $1,000,000, with a 20 percent contingency of $200,000, for a total annual contract amount not to exceed $1,200,000, until the Omnia Partners contract expires on December 31, 2022, with the option to renew for as long as the Omnia Partners contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with W.W. Grainger, Inc. (Grainger), for furnishing and delivering maintenance, repair, and operations (MRO) supplies and related materials. The award represents the combined annual amounts as estimated by various City Departments.
The Purchasing Division in the Financial Management Department researched procurement options for hardware, hand and automotive tools, building supplies, traffic cones, barricades, and safety supplies, and discovered several other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the City of Tucson’s Grainger contract, through Omnia Partners, provided the best value to the City.
Grainger was selected based on their competitive pricing, service level, and breadth of product offerings. Grainger has the ability to manage high frequency, small volume, and will-call orders for a wide variety of materials used for special projects that would be impractical to bid individually. Grainger also offers convenient online ordering and has two store locations within a ten-mile radius of the city for will-call pickups. Purchases are streamlined through an internal approval process and custom catalogs may be created to limit the purchases of non-approved items. Grainger has the ability to provide necessary resources for Departments to order as-needed supplies for projects and job-related duties.
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 government agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
This matter was reviewed by Deputy City Attorney Amy R. Webber and Budget Management Officer Rhutu Amin Gharib on July 27, 2020, and by Deputy Finance Director Sandy Tsang-Palmer on July 17, 2020.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on August 11, 2020, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The annual contract amount will not exceed $1,200,000, inclusive of a 20 percent contingency. The cost for this contract is budgeted in various fund groups and departments. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. This contract will provide continued support to our local economy by assisting in the preservation of employment for at least seven employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER