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, miscellaneous hardware, and heating, ventilation, and air conditioning (HVAC) parts and supplies, on the same terms and conditions afforded to University of California, through Omnia Partners, formerly National IPA, in an annual amount of $225,000, with a 10 percent contingency of $22,500, for a total annual contract amount not to exceed $247,500, until the contract expires on June 30, 2023, 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 Fastenal Company (Fastenal), for furnishing and delivering fasteners, miscellaneous hardware, and HVAC supplies (excluding air filters). The award represents the combined annual requirements as estimated by various City department users.
The Purchasing Division of the Financial Management Department investigated procurement options for fasteners, miscellaneous hardware, and HVAC supplies (excluding air filters) and discovered several other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed three cooperative agreement options and of the three, Fastenal was chosen for their competitive pricing, rebate and incentive program, service levels, breadth of market basket, and local impact.
City Charter 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 on June 26, 2020, Deputy Finance Director Sandy Tsang-Palmer on June 22, 2020, and by Budget Management Officer Rhutu Amin Gharib on June 29, 2020.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and execute a contract concurrently is requested on July 14, 2020, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The annual contract amount will not exceed $247,500, inclusive of a 10 percent contingency, for the initial term of three years expiring June 30, 2023, with the option to renew for as long as the Omnia Partners contract is in effect. 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 five 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