Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to secure the Purchase of "MRO (Material, Repair, and Operations) and Janitorial Supplies" with MSC Industrial Supply at a cost of $443,283.42 for a duration of two (2) years, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of May 17, 2017
Item No. 17-0086
RFB No. 60005
Contract No. 6000688
Amount: $443,283.42
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD RFB No. 60005
MRO (Material, Repair, and Operation) and Janitorial Supplies
MOTION
Upon recommendation of Palencia Mobley, Deputy Director, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorized the Director to secure a contract with MSC Industrial Supply Co. for MRO (Material, Repair, and Operation) and Janitorial Supplies for a total amount of $443,283.42 for a duration of two (2) years, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
In previous years MRO items were stocked in the warehouse encumbering thousands of dollars in inventory. In 2014, DWSD explored Just-In-Time (J.I.Ts.) ordering for many common and frequently used items. MRO and janitorial items were commodities purchased via Just-In-Time. The first MRO contract was issued to Grainger Industrial Supply, PO 2896154. This enabled the warehouse to provide these types of items efficiently without shelf inventory. Although, JIT buying was ideal, the charges associated with the buys were not economical. Instead of renewing the contract with Grainger, Purchasing solicited bids for MRO and janitorial items.
JUSTIFICATION
When doing a total cost comparison between the incumbent supplier Grainger and the lowest bidder...
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