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ADOPT RESOLUTION APPROVING FINDINGS AND AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATIVE PURCHASE AGREEMENT FOR FURNITURE, INSTALLATION AND RELATED FURNITURE PRODUCTS AND SERVICES FOR 4 YEARS WITH HAWORTH INC OF MICHIGAN THROUGH THE OMNIA PARTNERS MASTER AGREEMENT
recommendation
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and authorize the City Manager to execute a Cooperative Purchase Agreement for the purchase of furniture, installation and related products and services; and
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process to utilize OMNIA Partners Master Agreement 2020000606; and
3. Approve a four (4) year agreement with Haworth Inc for an annual estimated amount of $512,500 and estimated agreement total of $2,050,000; and
4. Authorize the City Manager to exercise up to two (2) one-year extensions if necessary. Options to extend shall be contingent on the extension of the cooperative contract by OMNIA Master Agreement.
It is further 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
City Departments require ongoing access to furniture, installation, and related furniture products and services. Furniture and installation services will be purchased from Haworth Inc. or through Durst Office Interiors of Stockton, the local authorized dealer for Haworth products. The City Council authorized the existing equipment lease as an exception to the competitive bidding process through the OMNIA Master Agreement with service provider Haworth Inc.
DISCUSSION
Background
The City of Stockton has purchased office furniture and installation services from Haworth Inc/Durst Office Interiors through individual agreements for a variety of projects. These agreements have utilized cooperative agreements through OMNIA and their subsidiary organization, US Communities. These cooperative agreements permit state and local governments to take advantage of existing competitively solicited purchasing contracts without incurring the expenses and time associated with the Request for Proposal (RFP) process.
Present Situation
Over the last five years, the City has spent approximately $131,713 annually on furniture, installation, and related products and services throughout multiple departments. Additionally, the vast majority of these purchases have been sourced locally through Durst Office Interiors, the local provider for Haworth Inc. Existing warranty considerations require that any disassembly, relocation, and reassembly be carried out by the original provider in order to maintain coverage. When such needs arise, such as the anticipated moves related to the Waterfront Towers City Hall Relocation and Regional Wastewater Control Facility Modifications projects, it will be important for the City to have an agreement that allows existing and future warranties to be preserved.
Findings
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirement for purchases in cases where the City Council has approved findings that support and justify the exception. Cooperative purchasing agreements authorized by the City Council for the purchase of supplies or services through other governmental jurisdictions or public agencies is one such exception. The findings to support entering into this Cooperative Purchase Agreement are as follows:
1. OMNIA and the City of Charlotte, the lead public agency, established a cooperative purchasing agreement for the purchase of furniture, installation services and related products and services after undergoing a formal RFP process that sought and awarded proposals.
2. The RFP specifications used by the OMNIA Master Agreement were assessed against the City’s standard RFP process and industry standards of quality and efficiency. Haworth Inc was selected by OMNIA as one of the suppliers for these products and services.
3. Utilizing Haworth for future furniture purchases in lieu of requesting quotes from other OMNIA awardees will ensure current Haworth warranties remain intact during future furniture installations.
4. The OMNIA Master Agreement extends the RFP protections and price discounts to governments, municipalities, related county/municipal authorities, and other non-profit organizations.
It is recommended that the City participate in the OMNIA Master Agreement with Haworth Inc to realize the savings achieved by entering into the proposed agreement, to save time and costs of a local RFP process, and to maintain existing warranties for any future furniture relocation needs. This agreement will allow the City to consolidate future furniture, installation and related products and services into a single agreement that can be utilized city-wide. This adjustment will make better use of City resources that were previously focused on one-time purchases based on limited term projects.
FINANCIAL SUMMARY
Historical annual spending over the last five years on furniture, installation and related products and services has been approximately $131,713. With the rising costs of materials specific to furniture construction, inflation rates, and major expenses related to the Waterfront Towers City Hall Relocation and the Regional Wastewater Control Facility Modifications projects, total spending is expected to increase exponentially over the term of this agreement. As a result, spending is estimated to be $512,500 annually, with an estimated total of $2,050,000 over the lifetime of the agreement.
This new agreement will also allow the City to maintain a standardized furniture source utilizing a local vendor. In addition, since Haworth/Durst has been the primary source for existing furniture, this agreement will maintain any warranties should the need arise in the future to relocate furniture purchased through Haworth/Durst prior to and during the term of the agreement.
This agreement will be utilized city-wide and will be paid from a variety of account numbers based on departmental budget and need. In subsequent years, the funding will be appropriated individually by the department through the annual budget process.