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HomeMy WebLinkAbout08/16/1994, C-6 - COOPERATIVE PURCHASING-OFFICE SUPPLIES MEETING DATE: ('16111milU Ci of san tins osispo - - COUNCIL AGENDA REPORT MN NUMBER: FROM: William C. Statler, Director of Financel Prepared by: Carolyn Dominguez, Accounting Manager SUBJECT: COOPERATIVE PURCHASING - OFFICE SUPPLIES CAO RECOMMENDATION Authorize cooperative purchasing of office supplies through the County of San Luis Obispo. DISCUSSION Background Developing and implementing joint purchasing efforts with other agencies is a key objective established by the Council as.part of the 1993-95 Financial Plan. Accordingly, we have been actively pursuing all available avenues for cooperative purchasing to obtain the most competitive pricing on products. We are participants in both state and federal cooperative purchasing and surplus programs. On a local level, the City is a member of the California Association of Public Purchasing Officers (CAPPO) and the Coalition for Cooperative Government, which are very active in developing cooperative purchasing opportunities. Additionally, at the urging of the City, members of the local agencies have included wording in their standard bid packages, similar to ours, that states that successful bidders will extend all terms and conditions to any other local governmental agencies upon request. Office Supplies Contract In February 1994 the Council approved an invitation for bids (IFB) for the City's office supply contract. Because of inconsistencies in the bids received from the Office Mart, Mission Office Product, and Eastman Office Products,all three bids were rejected.A follow- up meeting was held with all three vendors to resolve the inconsistencies and identify the best way of preparing the bid package in soliciting new proposals. Subsequently, the County of San Luis Obispo issued an invitation for bid for their office supply contract. Like our IFB, all local vendors were invited to bid. In addition, the County offers a 5% preferential treatment for local vendors. Eastman Office Products was the successful County bidder. As part of the County's IFB,they included the cooperative purchasing language as requested by the City. Therefore,we can take advantage of the bidding procedures already conducted by the County and "piggyback" onto their office supplies contract. If we would ever be unhappy with the level of service provided by the County's vendor, we always have the option of returning to Council to pursue a vendor through the City's bid procedures. The City of Atascadero has used this approach for the past year, they are satisfied with the results and will continue to use cooperative purchasing through the County's contract. ��►�►��►�Illllp�inj�`����I city or san Luis osispo MINUMCOUNCIL AGENDA REPORT FISCAL IMPACT We will obtain quality office supplies at the best competitive pricing without duplicating the County's bidding process, utilizing staff time more effectively. ALTERNATIVES ■ Do not use cooperative purchasing for office supplies. Direct staff to re-open our own bidding procedures. This alternative is not recommended. The County has already gone through an arduous bid process which included all of the local vendors. The County's terms and conditions are no more or less restrictive than the City's. They have, in fact, done the difficult work for us, which will keep our limited staff resources concentrating on other important City issues. Unless the award will be made on factors other than price (recognizing the 5% advantage for local vendors factored into the County's process), it is highly unlikely that the outcome will be different than the County's. Lastly, because their purchasing volume is much higher than ours, it is unlikely that the City would receive better pricing than offered to the County. ■ Do not competitively bid office supplies. There is currently no "master contract" for city office supply purchases; each department purchases office supplies from various sources based on their own purchasing practices and experience. Because of the significant savings available to us under a master city-wide contract, this approach is not recommended.