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APPROVE A MOTION TO ENTER INTO COOPERATIVE PURCHASING AGREEMENTS THROUGH E&I TO OBTAIN ELECTRIC PARTS 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(B);
2. Approve the use of the cooperative purchase agreement through E&I Cooperative Services for the purchase of electrical parts and supplies with Vantage Electrical Group d.b.a. Vantage Group Contract No. No. EI00209-2023 RFP, for a term through August 31, 2028, and in a total not to exceed amount of $236,000.
3. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton has a need for a contract for electrical parts and supplies for the Public Works, and Municipal Utility Departments and MUD Stores to support City operations.
It is recommended that City Council approve a motion authorizing the City Manager to execute a cooperative agreement as specified above.
DISCUSSION
Background
For many years the city has been using Platt Electrical for electrical parts & accessories via purchase orders and p-card transactions. The estimated annual cumulative spend exceeds the City’s formal procurement threshold; therefore, the City needs to have a formal contract agreement in place.
The City of Stockton has a need to acquire these goods and services to meet the City’s needs and provide services to our community. Specifically, these contracts will be used by MUD Stores, Public Works and Municipal Utilities Department.
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.
This agreement was solicitated and awarded by E&I Cooperative Services, which is a member-owned, non-profit sourcing cooperative exclusively focused on awarding cooperative contracts that benefit public sector agencies.
This solicitation and contract document has been reviewed and has been determined to meet the City Procurement requirements and the needs of the City.
Present Situation
At present there is no contract for these services and the annual expenditure requires council approval. To better align with the City’s Procurement requirements, it is recommended that the City enter into a formal agreement for the purchase of these parts and supplies. Utilizing the E & I cooperative agreement allows the City an opportunity to leverage negotiated pricing and meet the operational needs.
Staff recommends entering into the cooperative agreement (Attachment A) to utilize E&I contract with Vantage Electrical Group d.b.a. Vantage Group Contract No. No. EI00209-2023 RFP.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides 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 findings are as follows:
1. City’s Procurement Office recommends the use of this participating agreement and the City’s cooperative purchase agreement, as it meets the criteria as an exception to the competitive bidding process.
2. Procurement confirmed that the E&I Cooperative contract was solicited and awarded through an open and competitive process and meets the City of Stockton’s procurement regulations.
3. Participation in the E&I Cooperative contract will provide the City with alignment with standard procurement practices.
4. Utilizing the E&I Cooperative contract will allow the City to benefit from the aggregating volume, securing better pricing than we can achieve on our own and reduce the administrative overhead by not going through our own solicitation, evaluation and award process.
5. Utilizing the E&I Cooperative contract supports the City’s objective of using local suppliers because Platt Electrical is the local electrical parts supplier with Vantage Electrical Group, dba Vantage Group.
FINANCIAL SUMMARY
Funding for electric parts and supplies 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 Vantage Electrical Group, Inc. dba Vantage Group and Platt Electrical (local distributor).
Attachment A - E&I Cooperative Piggyback Purchase Agreement with Vantage Electrical Group d.b.a. Vantage Group Contract No. EI00209-2023 RFP