TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute contracts with Lowe’s Home Center, LLC, of Mooresville, NC, and Grainger W.W., Inc., of Lake Forest, IL, for furnishing and delivering hand tools, automotive tools, specialty tools, hardware, and miscellaneous items, on the same terms and conditions afforded to Region 4 Education Service Center, of Texas, through Omnia Partners, formerly National IPA, in an annual aggregate amount of $800,000, with a 15 percent contingency of $120,000, for total annual aggregate amount not to exceed $920,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Lowes Home Center, LLC (Lowe’s), and Grainger W.W., Inc. (Grainger), for hand tools, automotive tools, specialty tools, hardware, and miscellaneous items, for use by various City departments.
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 voluntary and selective basis when authorized by a Resolution of the City Council.
The Purchasing Division in the Financial Management Department researched procurement options for hand tools, automotive tools, specialty tools, hardware, and miscellaneous items. Lowe’s and Grainger were selected under the Region 4 Education Service Center (ESC) agreement, through Omnia Partners, formerly National IPA.
Lowe’s was selected based on their competitive pricing, service levels, breadth of product offering, and local economic impact. Lowe’s can 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. Purchases under this contract are to be made at two Long Beach stores. Grainger offers convenient online ordering and has two stores within a ten-mile radius for will-call pickups. Purchases made are streamlined through an internal approval process and custom catalogs may be created to limit the purchase non-approved items. Grainger provides the necessary resources for departments to order specialty tools, as needed, for projects and job-related duties.
This matter was reviewed by Deputy City Attorney Amy R. Webber on February 11, 2019, by Purchasing and Business Services Manager Sandy Tsang-Palmer on February 13, 2019, and by Budget Management Officer Rhutu Amin Gharib on February 12, 2019.
TIMING CONSIDERATIONS
City Council action is requested on March 5, 2019, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The annual aggregate amount will not exceed $920,000. The contracts will be used by various departments and allocated in different funds. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for 72 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER