TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with United Parcel Service, Inc., of Atlanta, GA, for providing ground and overnight express mail services on an as-needed basis, on the same terms and conditions afforded to Sourcewell, a state of Minnesota local government unit and service cooperative, in a total annual amount of $75,000, and authorize a
20 percent contingency in the amount of $15,000, for a total annual contract amount not to exceed $90,000, until the Sourcewell contract expires on November 11, 2025, with the option to renew for as long as the Sourcewell contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with United Parcel Service, Inc. (UPS) for providing ground and overnight express mail services on an as-needed basis for various departments.
The Purchasing Division within the Department of Financial Management researched procurement options for as-needed ground and overnight express mail services and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City of Long Beach (City) reviewed the contract options and determined that the contract between Sourcewell and UPS provided the best value to the City.
UPS was selected based on its competitive pricing, service level, and breadth of product offerings. UPS offers a convenient web-based shipping system. UPS services are convenient and flexible to meet the needs of 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 on the same terms as provide to 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 Principal Deputy City Attorney Richard F. Anthony on April 11, 2022, Business Services Manager Tara Mortensen on March 31, 2022, and by Revenue Management Officer Geraldine Alejo on April 7, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 10, 2022, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not exceed $90,000, inclusive of a 20 percent contingency. The contract will be used on an as-needed basis, with the cost budgeted across 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. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER