TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents, including any necessary amendments, with Ferguson US Holdings, Inc., of Pomona, CA, for furnishing and delivering as-needed plumbing supplies, on the same terms and conditions afforded to the County of Orange, in a total annual amount of $725,000, with a 20 percent contingency in the amount of $145,000, for a total contract amount not to exceed $870,000, until the County of Orange contract expires on February 10, 2024, with the option to renew for as long as the County of Orange is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Ferguson US Holdings, Inc. (Ferguson), for the furnishing and delivery of as-needed plumbing supplies as part of the City of Long Beach’s (City) operating expenses for the repair, replacement, and maintenance of various City facilities.
The Purchasing Division within the Department of Financial Management researched procurement options for as-needed plumbing supplies and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. This research affirmed that the contract between the County of Orange and Ferguson provided the best value to the City.
Ferguson was selected based on its competitive pricing, service level, and breadth of product offerings. Ferguson offers convenient online ordering and has a store location in Long Beach for will-call pickups. Ferguson can 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 governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 9, 2021, Business Services Bureau Manager Tara Mortensen on August 5, 2021, and by Revenue Management Officer Geraldine Alejo on August 9, 2021.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on September 7, 2021, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual amount of the contract will not exceed $870,000, inclusive of the 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. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for 20 full-time 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