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File #: 17-0133    Version: 1 Name:
Type: Contract Status: Passed
In control: Financial Services
On agenda: 8/16/2017 Final action: 8/16/2017
Title: The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department (DWSD) authorizes the Director to secure a contract with Arrow Office Supply for general office supplies for a total amount not to exceed $129,496.84 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.
Indexes: Finance Committee
Attachments: 1. Office Supply Supplier List - MITN, 2. OFFICE SUPPLY BID TAB - RFB 70001, 3. OFFICE SUPPLY BID TAB II - RFB 70001_2

Title

The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department (DWSD) authorizes the Director to secure a contract with Arrow Office Supply for general office supplies for a total amount not to exceed $129,496.84 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 August 16, 2017

Item No: 17-0133

DWSD RFQ No. 70001

Amount: $129,496.84

 

TO:                                          The Honorable

                                          Board of Water Commissioners

                                          City of Detroit, Michigan

 

FROM:                     Gary Brown, Director

                                          Water and Sewerage Department

 

RE:                                          DWSD RFQ No. 70001 “General office supplies - desk top delivery”

                     Arrow Office Supply

 

MOTION

Upon recommendation of Marcus Hudson, CFO, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to secure a contract with Arrow Office Supply for general office supplies for a total amount not to exceed $129,496.84 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

JIT (Just-In-Time) inventory management was initiated in 2013, which replaced our previous practice of securing and storing basic office supplies in bulk and directly buying non-catalog items not maintained in the warehouses. JIT program supports the importance of carrying effective, minimum amount of items.

 

Traditionally, our warehouses aimed to carry a surplus so they would not run out of stock. However, by minimizing inventory, JIT general office supplies - desk top delivery method will help eliminate waste and free up resources to employ elsewhere within DWSD. The JIT general office supply program is to provide all necessary office supply items to the entire department in a more timely and efficient way. This contract will be for a two (2) year period.

 

JUSTIFICATION

The JIT general office supply contract will serve to ensure that all DWSD general office supply needs are managed more efficiently and effectively addressed. Requesters take ownership as they understand that nothing goes to waste and that they control the process to improve the efficiency of DWSD and reduce cost. The process helps to eliminate stock piling that in the past caused waste. JIT program services are essential for the everyday function of DWSD facilities.

 

                                                                                    BIDDERS

 

Kerr Albert Office Supplies                                          Wright Tool Company

Arrow Office Supply Co.                                          Staples Contract & Commercial Inc.

Integrity Business Solutions                                          RM International Resource

LB Office Product                                                               Audio Visual Equipment

Kamar Office Express

 

PROCUREMENT METHOD

This was an open competitively bid contract. The Request for Proposal (RFQ) was advertised during the week of July 10, 2017 and closed on July 19, 2017 on the Michigan Inter-Governmental Trade Network (MITN) website. This requirement was solicited to over one-hundred forty-nine (149) companies in MITN on RFQ 70001, which yielded nine (9) responsive, responsible bidders.

 

Purchasing recommends awarding a two (2) year contract to the lowest responsive, responsible bidder, Arrow Office Supply and request approval for the contract amount of $129,496.84 for general office supply. Kerr Albert Office Supplies, the lowest bid received, disqualified and was rejected for not submitting all the required documentation. If the recommended bidder is unable to respond, the award should be made to the next lowest, responsive, responsible bidder without further Board action.

 

DETAILS

                     Funding Source                                                               Operation & Maintenance

                     GLString                                     5720.20170.485112.620100.000204.10731.0000.000000

                     Annual Cost                                                                   $64,748.42

                     2-year total                                                                  $129,496.84

 

This contract was presented to the Finance Committee August 10, 2017 and is an Operations and Maintenance funded item.