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APPROVE A MOTION TO ENTER INTO A COOPERATIVE AGREEMENT WITH STAPLES CONTRACT AND COMMERCIAL LLC THROUGH SOURCEWELL FOR OFFICE EQUIPMENT, PRODUCTS AND SUPPLIES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings in support of an exception to the competitive bid process, pursuant to Stockton Municipal Code section 3.68.070.
2. Approve the use of a Cooperative Purchase Agreement through Sourcewell, Contract No. 070924-SCC, with Staples Contract and Commercial LLC (Staples) for Office Equipment, Products and Services, for a term ending February 2, 2029, and a total not to exceed amount of $3,400,000.
It is also recommended that that the City Manager be authorized to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The proposed cooperative agreement with Staples is for the purchase of Office Equipment, Products and Services. The Staples agreement was established through a competitive Request for Proposals (RFP) process conducted by Sourcewell.
It is recommended that City Council approve findings to justify and support an exception to the bidding process and authorize the City Manager to execute a Cooperative Purchase Agreement with Staples for a total not-to-exceed amount of $3,400,000, for a term beginning April 7, 2025, through February 02, 2029.
DISCUSSION
Cooperative purchasing agreements leverage collective buying power of the cooperative partners to negotiate lower prices. The strength in the numbers of cooperative partners enables members to access a contractual solution that could not be achieved on their own.
Background
For many years the City has been using Staples for Office Equipment, Products and Services. The current cooperative contract with Sourcewell (#012320-SCC) is due to expire on April 6, 2025.
The new Sourcewell Cooperative contract Number. 070924-SCC with Staples will commence on April 7, 2025, to allow continuity of purchasing needed office equipment, products and services through February 2, 2029.
Present Situation
The City has a continuous need for office equipment, products and services. Utilizing the Sourcewell cooperative agreement allows the City an opportunity to leverage negotiated pricing based on the cooperative agreement partners spend.
ASD staff reviewed cooperative contracts and price proposals from the following three vendors:
• Staples
• Office Depot
• AAA Business Supplies & Interiors
The price proposal for all vendors was based on City higher usage items for example printer ink, cleaning products, Kleenex, pens, and post-it notes.
ASD staff evaluated vendors on the price proposal and their online ordering process. Staples submitted the lowest price and the City already uses Staples ordering process.
Therefore, Staff recommends entering into the cooperative agreement (Attachment A) with Staples to utilize the Sourcewell agreement number 070924-SCC for a total not-to-exceed amount of $3,400,000 for the term of April 7, 2025 through February 2, 2029. This contract has three (3) additional one-year extensions if agreed upon between Sourcewell and Staples.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides for an exception to the competitive bidding process where the City accesses the terms of a competitively bid and negotiated cooperative purchasing agreement, and where the City Council has approved findings that support and justify the exception. The following findings justify and support an exception:
1. City’s Procurement Division recommends utilizing the Sourcewell contract with Staples to enter into a cooperative purchase agreement for the purchase of office equipment, products and services, as it meets the criteria as an exception to the competitive bidding process.
2. Procurement staff confirmed that the Sourcewell contract was solicited and awarded through an open and competitive process and meets the City of Stockton’s procurement requirements.
3. Participation in the Sourcewell agreement with Staples is in alignment with standard procurement practices as referenced in City of Stockton Policy # 17.05.060.
4. Utilizing the Sourcewell agreement with Staples allows the City to secure competitive pricing from Staples through aggregated volume purchasing and reduces the administrative costs associated with the solicitation, evaluation and award process.
FINANCIAL SUMMARY
Staff recommend entering into a cooperative purchasing agreement with Staples through Sourcewell Contract No. 070924-SCC for office equipment, products and services, for the term April 7, 2025, through February 2, 2029, for a total not-to-exceed amount of $3,400,000.
Funding for office equipment, products, and services is already included within individual departmental operational budgets as part of the City’s annual budget process. No additional funding is required to enter into the cooperative purchasing agreement with Staples.
Attachment A - Cooperative Agreement with Staples Contract and Commercial LLC