HomeMy WebLinkAbout01/06/1998, C8 - COOPERATIVE PURCHASING - OFFICE SUPPLIES0
council
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Repoln
C I T Y OF S A N L U I S O B I S P O
FROM: Bill Statler, Director of Finance Vda`''
Prepared By: Carolyn Dominguez, Accounting Manager
SUBJECT: COOPERATIVE PURCHASING - OFFICE SUPPLIES
CAO RECOMAMNDATION
Mau, Nw 4
/ -18
Authorize cooperative purchasing of office supplies through the County of San Luis Obispo.
DISCUSSION
In August 1994, the Council authorized a cooperative purchasing arrangement where the City was
allowed to "piggyback" on the County's office supplies contract with Office Depot (then Eastman Office
Products). The County has recently concluded the invitation for bid (IFB) process and awarded Office
Depot a three year contract. As with past contracts, the County offers a 5% preferential treatment in
evaluating bids from local vendors.
The City is once again eligible to "piggyback" on this contract and take advantage of the County's very
attractive pricing structure. The County contract includes an "A List" which contains fixed pricing for
264 standard office supply items, and a sixty-one percent (61 %) discount off the current manufacturers
suggested list price for other office supplies (with some exceptions for computers and certain office
furniture).
FISCAL IMPACT
For the fiscal year ended June 30, 1997, the City spent approximately $55,000 with Office Depot under
the prior contract. Pricing in the new County contract is even more competitive, so the City can
anticipate even greater savings utilizing this cooperative purchasing arrangement.
ALTERNATIVES
® Do not use cooperative purchasing for office supplies. Direct staff to open our own bidding
process; this alternative is not recommended. The County has already gone through an arduous bid
process which included 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. It is highly unlikely that the
outcome of a City process would be any 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.
fi Do not competitively bid office supplies. Because of the significant savings available to us under a
master city-wide contract, this approach is not recommended. Allowing each department to purchase
supplies from various sources is not in the best fiscal interest of the City.
ON FILE IN THE COUNCEL OFFICE
County office supply contract
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