July 13, 2004

SUBJECT: Extension of Contract to Print, Label and Mail the Sunnyvale Quarterly Report (F0306-82)

Approval is requested for a one-year extension of a recently-expired contract with Fricke-Parks Press, Inc., of Union City to print, label and mail the Sunnyvale Quarterly Report for the Department of Information Technology.

The Department of Information Technology offers centralized printing services in support of City departmental needs. Some printing services are performed in-house, and some are outsourced to local printers, depending on the complexity of the project and/or the required delivery date.

The Sunnyvale Quarterly Report is one of the projects that has traditionally been outsourced since it is a complex job which includes not only printing, but also mailing label generation and delivery of more than 60,000 copies to the post office. Outsourcing the production of the Quarterly Report has typically fallen within the City Manager's contract award authority for goods or services.

The City's contract with Fricke-Parks, which expired on May 31, 2004, was awarded as the result of a competitive bid.

Staff has been well satisfied with the services and product provided by Fricke-Parks over the past year. Fricke-Parks has agreed to hold its 2003 pricing firm through the requested contract extension.

Total cost to the City to print the Sunnyvale Quarterly Report over a two-year period (original contract term for a total not-to-exceed amount of $50,000 plus the requested one-year extension amount of $60,000) is not expected to exceed $110,000. Authorization of this amount includes a $10,000 increase to accommodate minor format modifications and/or an increased number of report inserts should these changes be deemed appropriate.

Funds are available in Information Technology Print Service Delivery Plan 760180 - (FY 03-04) and restructured Print Service Delivery Plan 764521 (FY 04-05). These cost are recovered through the rental rate process and charged back to the Office of the City Manager operating budget.

It is recommended that Council authorize a one-year extension of a contract with Fricke-Parks Press, Inc., to print, label and mail the Sunnyvale Quarterly Report, in substantially the same form as the attached draft Purchase Order Change Order and in a total amount not to exceed $110,000.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Shawn Hernandez
Director, Information Technology

Approved by:

Amy Chan
City Manager

1. Draft Change Order (.pdf format)
2. Blanket Purchase Order No. 26525-B (.pdf format)