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April 16, 2002
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SUBJECT: |
Award of Contract for Modular and Freestanding Furniture (F0204-58) (RTC#02-129) |
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REPORT IN BRIEF |
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Approval is requested for the award of a contract to Northstar Acquisitions, Inc., of Georgetown, Texas, for used Haworth furniture. |
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BACKGROUND |
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Currently, there are two City standards for modular furniture; and the City is in transition from one furniture line to the other. The first (old line) is UNIGROUP, and the second (new line) is PREMISE. Both are manufactured by Haworth, Inc., of Holland, Michigan. Historically, the City has purchased these furniture lines, as required, using a U.S. Communities Master Agreement at a large discount. The City ordinarily purchases new product, but the recent economic downturn has created opportunities to purchase used product of excellent quality at a substantial cost savings. |
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DISCUSSION |
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Prompted by the Space Optimization Study and the City’s acquisition of property at 505 West Olive, the need for furniture has escalated; and staff has been alert to opportunities to lessen the fiscal impact on the City. Purchasing and Building Services staff recently identified an opportunity to procure used PREMISE modular furniture from Northstar Acquisitions, a liquidator in Austin, Texas. A fact-finding mission was undertaken by staff who flew to Austin, Texas, to view the available furniture and explore pricing with the liquidator. Staff discovered that not only was the used modular product viable, it was in excellent condition and only two years old. Further, staff discovered that there were other non-modular used Haworth products available that the City could procure to fulfill future furniture needs. Therefore, staff is recommending that we take this opportunity to acquire furniture for the City's immediate and future needs at this very favorable price. Following is an analysis of the cost savings that can be achieved through the requested purchase: |
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Description |
Qty |
Cost Used |
Cost New |
Cost Savings |
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1 |
Various Work Stations Cubes Plus Lateral Files |
108 |
$100,000 |
$410,400 |
-$310,399 |
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2 |
Management Desk (U-Shaped) |
12 |
$7,200 |
$42,000 |
-$34,800 |
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3 |
Round tables 36" (Breakroom) |
14 |
$1,050 |
$4,200 |
-$3,150 |
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4 |
Small 8' Conference Tables |
9 |
$5,400 |
$10,800 |
-$5,400 |
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5 |
Large 10' Conference Tables |
3 |
$1,950 |
$5,250 |
-$3,300 |
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6 |
Haworth Chairs |
172 |
$24,940 |
$51,600 |
-$26,660 |
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7 |
Haworth Side Chairs |
75 |
$5,625 |
$11,250 |
-$5,625 |
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8 |
Freight Cost Shared ($1,325) |
3 |
$3,975 |
---- |
--- |
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9 |
Large Buy Discount |
1 |
-$32,940 |
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--- |
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Sub Total = |
$117,200 |
$535,500 |
-$389,334 |
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Sales Tax (8.25%) = |
$9,342 |
$44,178 |
-$34,836 |
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TOTALS = |
$126,542 |
$579,678 |
-$453,136 |
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Section 2.08.070(b) of the Sunnyvale Municipal code exempts from competitive bidding situations where solicitations of bids or proposals would for any reason be impractical, unavailing or impossible. In this case, it would be impossible to bid due to the lack of good quality used PREMISE furniture in the market place. |
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Fiscal Impact |
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Total cost to the City will be $126,542. Funds are available in Capital Project #814650 - City Hall Improvements. |
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RECOMMENDATION |
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It is recommended that Council award a contract in the amount of $126,542 to Northstar Acquisitions, Inc., for the purchase of used Haworth furniture. |
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Prepared by: |
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Reviewed by:
Robert Walker |
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Approved by: |
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