December 21, 2004
SUBJECT: Authorization to Use a State of California Contract and Award of Contract for the Purchase of Office Supplies (F0306-86)
REPORT IN BRIEF
Authorization is requested to use a State of California contract for office supplies and award an eighteen-month contract to Boise Cascade Office Products.
BACKGROUND
For the past several years, the City has found it beneficial to "piggyback" on contracts initiated by larger public agencies. This has allowed the City to leverage the deep discounts typically offered only to high volume purchasers.
In recent years, City has "piggybacked" on State of California contracts for office supplies. In 2001, State of California Contract No. 1-01-75-55 was awarded to Boise Cascade Office Products as the result of a competitive bidding process; and this contract is the basis under which the City's current Blanket Purchase Order with Boise Cascade was issued. This Blanket Purchase Order will expire on December 31, 2004.
DISCUSSION
Under the terms of the current State of California contract, office products are offered to state agencies, as well as local government entities, at a 63% discount from list price. A California Custom Catalog is available which includes over 8,000 discounted items; and orders can be placed online or by phone, fax or mail. There is no minimum order; and Boise offers weekday desktop delivery within 24 hours.
Staff has also reviewed the current U. S. Communities contract with Office Depot. This contract, which was competitively bid by Los Angeles County, is similar to the State of California contract. However, a comparison of discounted pricing for high usage items revealed that the State of California contract offers the most advantageous pricing for Sunnyvale.
Section 2.08.220(b) of the Sunnyvale Municipal Code authorizes the use of a contract initiated by another governmental entity, provided that the original parties to the contract agree, the contract was awarded within twelve months of the date of authorization, the contract is for identical or nearly identical goods, and the contract resulted from a competitive bid using methods similar to those required by the City's Purchasing Ordinance.
The requested contract meets all of the required criteria with the exception of having been awarded within the last twelve months. In this case, the contract was awarded in 2001 and, in May 2004, extended through July 18, 2006. The recent contract extension conforms to the intent of the twelve-month criteria which is to ensure that the contract being used is current.
Staff, therefore, recommends that Council authorize the use of State of California Contract No. 1-01-75-55 and award a contract to Boise Cascade Office Products, effective January 1, 2005, through July 18, 2006 (the date the State contract expires).
FISCAL IMPACT
The Citywide cost for office supplies is approximately $180,000 per year. Funds have been budgeted in operating accounts throughout the City.
RECOMMENDATION
It is recommended that Council authorize the use of State of California Contract No. 1-01-75-55 and award an eighteen-month contract, in substantially the same form as the attached Blanket Purchase Order, to Boise Cascade Office Products.
Prepared by:
Elaine Wesely
Purchasing Officer
Reviewed by:
Mary J. Bradley
Director, Finance
Approved by:
Amy Chan
City Manager
Attachment
Draft Blanket Purchase Order(PDF)