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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: April 16, 2024 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 the procurement of business products and office supplies through an online marketplace for various City of Denton departments, providing for the expenditure of funds therefor; and providing an effective date (File 8497 – awarded to Amazon Services, LLC, in the five (5) year not-to-exceed amount of $6,000,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Foster Economic Opportunity and Affordability and Promote Sustainability and the Environment. INFORMATION/BACKGROUND Amazon Business provides one-stop shopping for a vast selection of business-relevant items, such as office supplies and equipment, furniture, technology equipment, products, services and software, and custodial supplies and equipment. 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. Staff reviewed previous spending history under the current contract with Staples to create a list of the top 100 goods for evaluation. The list of goods was then sent to several vendors to input pricing, utilizing the various cooperative agreements to evaluate the estimated annual cost with each pricing structure. Each cooperative offers different pricing structures, benefits, fees, and rebates. The pricing comparison shows City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com each cooperative pricing of goods. The Amazon cooperative contract with Omnia provided the overall best value to the City. Staff will follow up with Omnia Partners Cooperative Purchasing Network before the expiration to confirm that the contracts will be renewed for an additional period. If the contracts are not renewed, this item will automatically expire, and a new contract will be awarded. In fiscal year 2023, City departments purchased approximately $775,000 in PCards from Amazon and $285,000 in Purchase Orders from Staples. Purchases included office supplies and equipment, training materials, work clothing, safety gear, program supplies, electronics, furniture, janitorial products, and other miscellaneous items. Project Description Estimated 5-Year Expenditure Year 1 $1,100,000 Year 2 1,100,000 Year 3 1,100,000 Year 4 1,100,000 Year 5 1,100,000 Contingency-price increases and increased usage by departments 500,000 Total $6,000,000 Pricing obtained through the Omnia Partners contract has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 14, 2021, City Council approved the interlocal agreement with the Omnia Partners (Ordinance 2021-1842). RECOMMENDATION Award a contract with Amazon Services, LLC, for the procurement of business products and office supplies through an online marketplace for various City of Denton departments, in a five (5) year not-to-exceed amount of $6,000,000. PRINCIPAL PLACE OF BUSINESS Amazon Services, LLC Seattle, WA SUSTAINABILITY MEASURES Purchasing all of the City’s office supplies through Amazon reduces air pollution through the use of their climate-friendly vehicles. Amazon provides their Climate Pledge Friendly program which highlights companies that provide environmentally friendly products to their end users. 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. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Price Comparison Exhibit 3: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Lori Hewell, 940-349-7100. Legal point of contact: Marcella Lunn at 940-349-8333.