TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including subsequent amendments, with Office Depot, Inc., of Cincinnati, OH, for furnishing and delivering custodial supplies, on the same terms and conditions afforded to Region 4 Education Service Center (ESC), of Texas, through Omnia Partners, in an annual amount of $2,000,000, with a 10 percent contingency of $200,000, for a total annual contract amount not to exceed $2,200,000, until the Omnia Partners contract expires on January, 31, 2025, 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 Office Depot, Inc. (Office Depot), for furnishing and delivering custodial supplies, including, but not limited to, mops and towels, restroom supplies, and cleaning products, to various City of Long Beach (City) Departments.
The Purchasing Division of the Financial Management Department investigated procurement options for custodial supplies and learned that several agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed four cooperative agreement options for custodial supplies. Office Depot (not a Minority-owned Business Enterprise (MBE), Women-owned Business Enterprise (WBE), Small Business Enterprise (SBE), or Long Beach vendor) was chosen for their competitive pricing, service levels, breadth of product offerings, and local impact. Office Depot also offers a rebate incentive up to 5 percent of the City’s annual spend. Additionally, the City has an existing tax sharing agreement with the City of Signal Hill for a portion of sales and use tax revenues generated through Office Depot’s E-commerce center. Through that agreement, the City may be able to maximize the capture of a portion of the sales tax revenue expended via this contract.
City Charter Section 1802 provides an alternate 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 Anita Lakhani on January 26, 2022, Business Services Bureau Manager Tara Mortensen on January 24, 2022, and by Revenue Management Officer Geraldine Alejo on January 28, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on February 15, 2022, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The annual contract amount will not exceed $2,200,000, inclusive of a 10 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 16 employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER