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AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT WITH CINTAS CORPORATION THROUGH OMNIA PARTNERS TO OBTAIN CITYWIDE UNIFORM RENTAL AND LAUNDRY SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize a four-year cooperative purchase agreement with Cintas Corporation to provide uniform rental and laundry services through a cooperative contract awarded by OMNIA partners, for a total not to exceed amount of $1,354,200.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
The City of Stockton (City) provides uniforms to authorized department personnel under the terms of its various bargaining agreements. Some departments also require other supplies such as floormats provided through the same contract rental and laundry services. The City is currently in its final contract term for these services. To ensure regular service at a reasonable cost, the staff reviewed available cooperative agreements and recommended OMNIA Partners’ agreement with the Cintas Corporation, Cincinnati, OH, to best meet the City’s needs.
It is recommended that Council approve a resolution authorizing the City Manager to execute a Cooperative Purchase Agreement with Cintas Corporation for a four-year term not to exceed $1,354,200 with no additional extensions.
DISCUSSION
Background
Uniforms and floormats are rented and laundered weekly for City Departments including the Municipal Utilities (MUD), Public Works (PW), Police (PD), and Administrative Services (ASD). These services are necessary to meet adopted provisions outlined by applicable collective bargaining agreements. On January 15, 2019, the City of Stockton approved a cooperative purchasing agreement with Aramark Uniform and Career Apparel LLC (Aramark) for these services. The City is currently in the final contract term with Aramark, which expires on September 30, 2023.
To obtain services that meet the needs of the City, MUD and ASD reviewed the offerings and capabilities under the OMNIA Partners national cooperative agreement R-BB-19002 with Cintas Corporation. The OMNIA Partners is a group purchasing organization that provides public agencies strategic procurement resources through nationally available and competitively bid contracts. The ASD verified that the OMNIA Partners agreement met competitive processes which were acceptable to the City. The MUD and PW staff evaluated the services and products offered by the Cintas Corporation and confirmed that they met the inventory and material requirements of the City’s collective bargaining agreements.
Staff recommends authorizing a contract with the Cintas Corporation for uniform rental and laundry service to give the MUD, PW, PD, and the ASD the ability to provide uniform rentals, floormats, and laundering services in accordance with City’s adopted collective bargaining agreements.
Present Situation
A recognized procurement best practice for public agencies is to utilize cooperative agreements that leverage the combined purchasing power of many entities (Exhibit 1 to Resolution). Cooperative agreements are established through a formal competitive bidding process that meets City requirements and thus fulfills the City’s procedural requirements for full and open marketplace competition.
The City is in the final contract extension for uniform and floormat rental, and laundry services with Aramark. On August 23, 2018, OMNIA Partners - formerly U.S. Communities Government Purchasing Alliance - solicited nationwide bids for facilities management products and solutions and awarded the Cintas Corporation contract R-BB-19002 Facility Management Products and Solutions for an initial five-year term and two (2) two-year extensions which will expire on October 31, 2027.
The not-to-exceed amount on the quote is based on the current and estimated staffing levels and historical expenditures. The estimated total four-year cost is $1,354,200 which includes an estimated three percent increase annually due to estimated changes in the consumer price index.
Staff recommends authorizing the City Manager to execute a four-year contract with the Cintas Corporation for a not-to-exceed amount of $1,354,200 for facility management products and solutions.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a cooperative purchasing agreement. The findings to support this purchase are:
1. Cintas Corporation contract R-BB-19002 was established through a formal competitive solicitation process through OMNIA Partners.
2. Cintas Corporation contract R-BB-19002 for Facilities Management Products and Solutions scope and criteria meets the City’s needs.
3. Use of existing procurement agreements fosters the efficient use of public funds and helps streamline local government procurement practices.
FINANCIAL SUMMARY
The estimated not-to-exceed amount is based on current staffing levels and historical expenditures. The calculated estimated total cost is $1,354,200 and is allocated annually in the table below:
|
Department |
Estimated FY2023-24 Cost* |
Estimated FY2024-25 Cost** |
Estimated FY2025-26 Cost** |
Estimated FY2026-27 Cost** |
Total 4-year Not to Exceed Amount |
|
Municipal Utilities |
$161,500.00 |
$216,200.00 |
$222,700.00 |
$229,400.00 |
$829,800 |
|
Public Works |
$95,000.00 |
$127,200.00 |
$131,100.00 |
$135,000.00 |
$488,300 |
|
Police |
$3,900.00 |
$5,200.00 |
$5,400.00 |
$5,600.00 |
$20,100 |
|
Administrative Services |
$3,100.00 |
$4,200.00 |
$4,300.00 |
$4,400.00 |
$16,000 |
|
TOTAL |
$263,500.00 |
$352,800.00 |
$363,500.00 |
$374,400.00 |
$1,354,200 |
* Estimated Annual Cost is for contract term October 1, 2023 - June 30, 2024.
** Estimated Annual Cost includes estimated three percent annual increase.
The costs listed above are estimates only. The actual costs may vary depending on departmental staffing level changes and/or actual repair or replacement costs which exceed initial estimates. The not-to-exceed total includes a three percent annual escalation per year to account for potential price changes based on the estimated consumer price index.
Sufficient funds are available in the various departmental uniform provision accounts to cover the cost of this cooperative purchasing agreement.