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APPROVE A MOTION TO ENTER INTO A COOPERATIVE AGREEMENT WITH GRAINGER THROUGH OMNIA PARTNERS/CITY OF TUCSON FOR MAINTENANCE, REPAIR AND OPERATIONS (MRO) SUPPLIES, PARTS, EQUIPMENT, AND MATERIALS
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 Omnia Partners, Contract No. 240078-01, with W.W. Grainger, Inc. for Maintenance, Repair and Operations (MRO) Supplies, Parts, Equipment, and Materials, through December 31, 2027, and a total not-to-exceed amount of $2,500,000.
It is also recommended that the City Manager be authorized to take any necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The proposed cooperative agreement with W.W. Grainger, Inc. (Grainger) is for the purchase of Maintenance, Repair and Operations (MRO) Supplies, Parts, Equipment, Materials, and Related Services. The Grainger agreement was established through a competitive bid process conducted by Omnia Partners (Omnia).
It is recommended that 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 Grainger for a total not-to-exceed amount of $2,500,000 through December 31, 2027.
DISCUSSION
The City of Tucson partnered with Omnia Partners to issue a competitive Request For Proposals for the purchase of MRO Supplies, Parts, Equipment, Materials, and Related Services.
Cooperative purchasing agreements leverage collective buying power of the cooperative partners to negotiate lower prices. The strength in the numbers of cooperative partners enable members to access a contractual solution that could not be achieved on their own.
Background
The City of Stockton has a need to acquire MRO Supplies, Parts, Equipment, Materials, and Related Services for various departments to properly support daily maintenance, repair and operational needs, such as fleet and vehicle maintenance, lighting and electrical, janitorial/cleaning supplies, hardware/fasteners parts, plumbing needs, and tools. The estimated annual cumulative spend exceeds the City’s formal procurement threshold. Historically, the City secured MRO parts and services via purchase orders and P-card transactions.
Present Situation
To align with the City’s procurement requirements, Staff recommends that the City enter into a formal agreement for the MRO parts, supplies and related services. Utilizing the Omnia Partners cooperative agreement allows the City an opportunity to leverage negotiated pricing based on the cooperative agreement partners’ spending levels. The City currently does not currently have a contract(s) in place for MRO needs.
Staff recommends entering into a cooperative agreement (Attachment A) to utilize the Omnia Partners agreement Number 240078-01 for a total not-to-exceed amount of $2,500,000 and a term from date of execution through December 31, 2027. This contract is coupled with two (2) additional one-year extensions if agreed upon between Omnia Partners and the City of Tucson.
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 following findings justify and support an exception:
1. City’s Procurement Division recommends utilizing the Omnia Partners contract with Grainger MRO Supplies, Parts, Equipment, and Materials to enter into a cooperative purchase agreement, as it meets the criteria as an exception to the competitive bidding process.
2. Procurement staff confirmed that the Omnia Partners contract was solicited and awarded by City of Tucson through an open and competitive process and meets the City of Stockton’s procurement requirements.
3. Participation in the Omnia agreement with Grainger is in alignment with standard procurement practices.
4. Utilizing the Omnia agreement with Grainger allows the City to secure competitive pricing from Grainger through aggregated volume purchasing and reduces administrative costs associated with the solicitation, evaluation and award process.
FINANCIAL SUMMARY
Staff recommend entering into a cooperative purchasing agreement with Grainger through Omnia Partners Contract No. 240078-01 for MRO Supplies, Parts, Equipment, and Materials through December 31, 2027, for a not-to-exceed amount of $2,500,000.
Funding for MRO supplies and services are 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 Grainger.
Attachment A - Cooperative Agreement with W.W. Grainger, Inc.