February 24, 2004
SUBJECT: Amendment of Existing Contract to Provide Uniforms for Certain City Employees (F0302-48)
REPORT IN BRIEF
Approval is requested for the amendment of an existing contract with Aramark Uniform Services, Inc., of San Jose to provide and launder uniforms for City employees. The requested contract amendment would authorize additional expenditures up to $25,000 through March 31, 2004, the end of the current contract term, and extend the contract for one additional year at a cost of $80,000.
BACKGROUND
The City has traditionally contracted with a commercial uniform provider to provide and launder uniforms for field crews, mechanics, water laboratory technicians, and other employees who typically work with materials, such as chemicals, street slurry seal, etc., which require an industrial cleaning process. These employees are located primarily within the Department of Public Works.
Ordinarily, uniform providers provide eleven sets of clothing to each employee on a rental basis. The employee has five sets, plus a spare, to wear while five sets are being laundered. Clean uniforms are delivered and soiled uniforms are collected for laundering on a weekly basis. The City is charged a weekly fee per article of clothing per employee.
The City's contract with Aramark Uniform Services began as the result of a competitive bid in 1997 and has been renewed annually since then. Because of the tremendous amount of time it takes to set up a uniform program for a large group of employees, it is impractical to regularly bid uniform services. Section 2.08.070(b) exempts from competitive bidding situations where soliciting bids would for any reason be impractical, unavailing or impossible.
DISCUSSION
Staff has investigated a variety of methods for providing uniforms for City employees. In some cases, purchasing uniforms for home laundry was found to be the most cost-effective method; and that approach has been implemented, where appropriate. For those employees who work with materials that require an industrial cleaning process, uniform rental has been determined to be the most cost-effective process.
The existing one-year contract for uniform rental and laundering, which is in the form of a Blanket Purchase Order and in an amount not to exceed $50,000, will expire on March 31, 2004. Expenditures are already approaching the contract not-to-exceed amount; and staff requests that Council increase authorized expenditures under the existing contract in an amount not to exceed $25,000, making a total not-to-exceed amount of $75,000.
Staff also requests authorization to extend the existing contract through March 31, 2005, at an estimated cost of $80,000 for the additional year.
FISCAL IMPACT
Total cost to the City for additional funding through March 31, 2004, and a one-year contract extension will not exceed $105,000 for a total contract amount not to exceed $155,000 ($50,000 original contract amount plus additional expenditures of $25,000 through March 31, 2004, plus $80,000 for a one-year contract extension). Funds have been budgeted in various activities throughout the City.
RECOMMENDATION
It is recommended that Council:
1. Authorize additional expenditures of $25,000 under the existing contract with Aramark Uniform Services, Inc., through March 31, 2004; and
2. Extend the existing contract through March 31, 2005, and authorize expenditures in an amount not to exceed $80,000 for the one-year extension; and
3. Authorize the Purchasing Officer to issue a Change Order to the existing contract reflecting the actions in 1 and 2 above.
Prepared by:
Elaine Wesely
Purchasing Officer
Reviewed by:
Mary Bradley
Director, Finance
Reviewed by:
Marvin Rose
Director, Public Works
Approved by:
Amy Chan
Acting City Manager