Loading...
Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: September 14, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Amazon Services, LLC, through the Omnia Partners Contract Number R-TC-17006, for procurement fulfillment of business products for the City of Denton through an online marketplace, providing for the expenditure of funds therefor; and providing an effective date (File 7799 – awarded to Amazon Services, LLC, in the five (5) year not-to-exceed amount of $2,000,000.00). INFORMATION/BACKGROUND Amazon Business provides one-stop shopping for a vast selection of business-relevant items. The online marketplace offers manufacturers and distributors from a wide variety of industries and specialties. Amazon Business customers also see exclusive pricing on a growing selection of items. An Amazon Business Prime subscription further supplements the discounted prices and variety offered by the Amazon marketplace. The subscription features a reduced government rate, bulk and customer-specific pricing, and free expedited shipping. The Purchasing department funds the Business Prime subscription, making it available for P-card purchases citywide. In addition to cost savings, this subscription offers configurable features that align with the City’s procurement processes and policies, including tax-exempt shopping, spending approvals, and control, diversified spending and tracking (to historically underutilized (HUB) businesses), and detailed transaction reporting. City policy rules can prevent employees from purchasing restricted products and reporting shows spending analysis to help make budgetary decisions and prevent procurement violations. In this fiscal year, 2020-21 City departments made 2,130 purchases on PCards totaling $318,844.19. Purchases included office supplies and equipment, training materials, work clothing, safety gear, program supplies, electronics, furniture, janitorial products, and other miscellaneous items. Departments are directed to purchase from contracted vendors to comply with procurement statutes. Amazon is one of the citywide vendors which provides a large variety of commodities for operational needs. Based on historical spend and future projections the not-to-exceed amount is $2,000,000. Pricing obtained through the Omnia Partners contract has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 14, 2021, Council approved the interlocal agreement with the Omnia Partners (Ordinance 2021-1842). RECOMMENDATION Award a contract with Amazon Services, LLC, for procurement fulfillment of business products for the City of Denton through an online marketplace, in a five (5) year not-to-exceed amount of $2,000,000. PRINCIPAL PLACE OF BUSINESS Amazon Services, LLC Seattle, WA ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract. Omnia Partners contract R-TC-17006 has a term of January 19, 2017, to January 18, 2022, with the option to renew for three (3) additional two (2) year periods through January 18, 2028. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. The City will only pay for services rendered and is not obligated to pay the full contract amount unless needed. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: LLC Members Exhibit 3: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Christine Taylor, 940-349-7195. Legal point of contact: Marcella Lunn at 940-349-8333.