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APPROVE MOTION TO ENTER INTO A COOPERATIVE PURCHASING AGREEMENT WITH PITNEY BOWES FOR LEASE AND MAINTENANCE OF MAIL EQUIPMENT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize City Manager to execute a cooperative purchasing agreement with Pitney Bowes under NASPO ValuePoint Contract No. CTR058808; 7-22-70-50-03 for the lease and maintenance of mail equipment for a term of five (5) years, in a total not-to-exceed amount of $157,285.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton has a need to lease and maintain mail processing equipment to support ongoing City operations. The proposed agreement with Pitney Bowes includes the lease of a Folding Inserter and Postage Machine for a five (5) year term.
The total cost for the term of the agreement is $157,285 which includes:
• Folding Inserter: $110,168 (Attachment A)
• Postage Machine: $47,117 (Attachment B)
Pitney Bowes is a recognized provider of mailing and shipping solutions and is able to provide equipment compatible with the City’s operational needs. Utilizing the NASPO ValuePoint cooperative contract allows the City to leverage competitively solicited pricing and services.
DISCUSSION
The City requires reliable and efficient mail processing equipment to support departmental operations, including billing, notices, and official correspondence.
The use of a cooperative purchasing agreement through NASPO ValuePoint provides several advantages, including:
• Competitive pricing through a nationally solicited contract
• Streamlined procurement process
• Access to proven vendors and standardized equipment
• Reduced administrative burden and procurement timelines
The NASPO ValuePoint cooperative agreement was competitively solicited and awarded in accordance with procurement best practices. The agreement meets the City’s operational requirements and provides cost-effective solutions for mail processing equipment.
BACKGROUND
A recognized ‘best practice’ for local governments is to utilize cooperative agreements that leverage the combined purchasing power of many entities and provide significant benefits to the participating organizations. Cooperative agreements (COOPs) 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. COOPs are negotiated agreements. The combined leverage of numerous participating entities that are represented by a cooperative purchasing group gives the City the ability to receive preferential pricing, terms, and conditions that the marketplace would typically offer only to a much larger organization.
Pursuant to California Public Contract Code, entities, may consolidate the needs of multiple agencies and leverage the entity’s buying power through a competitive and/or negotiated process to achieve better pricing for goods and services. These agreements are available to cities without further competitive bidding.
PRESENT SITUATION
The City’s existing mail equipment is outdated and requires replacement to maintain operational efficiency. Entering into this agreement ensures continuity of service and avoids disruptions to essential City mailing functions
FINDINGS
Stockton Municipal Code section 3.68.070 provides an exception to the City’s competitive bidding requirement in cases where the City Council has approved findings that support and justify the exception. The findings are as follows:
1. The Pitney Bowes agreement was established through a formal competitive bid process conducted by NASPO ValuePoint, represented by the State of Arizona (lead agency).
2. The City, on its own, would pay higher prices for the same goods and services and does not achieve the purchasing volume to obtain the same discounts available through the leveraged procurement agreements negotiated by multi-state cooperatives.
3. Taking advantage of the leveraged procurement agreements negotiated by multi-state cooperatives will also save the administrative expense of City staff conducting separate bulk purchasing procurements.
4. Pursuant to California Public Contract Code, entities, may consolidate the needs of multiple agencies and leverage the state’s buying power through a competitive process to achieve better pricing for goods and services. These leveraged procurement agreements are available to cities without further competitive bidding.
FINANCIAL SUMMARY
The cooperative agreement with Pitney Bowes is for the acquisition of printing and mailing equipment for the Reprographics Department. Total expenditures are not to exceed $157,285 through two 5-year lease agreements. Funding for this agreement will be included within the appropriate departmental budgets through the City’s annual budget process.
Attachment A - Folder Inserter Lease Agreement
Attachment B - Mailing Machine Lease Agreement