Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD to utilize a State of Michigan MiDeal cooperative contract with Staples for the as-needed purchase of office and breakroom supplies for a total amount not-to-exceed $1,500,000 and a term of up to 4 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 January 15, 2020
Item No. 20-0003
Contract No. 6002612
Contract Amount: $1,500,000 ($325,000 per year, including renewal options)
Contractor: Staples Contract & Commercial LLC (Staples)
Address: 500 Staples Drive, Framingham, Massachusetts 01702
Contract Term: 2/24/20 - 5/31/22, with two 1-year renewal options exercisable by the DWSD Director as per MiDeal’s extension of cooperative contract # 190000000268
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Contract No. 6002612
Office and breakroom supplies from Staples
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve DWSD to utilize a State of Michigan MiDeal cooperative contract with Staples for the as-needed purchase of office and breakroom supplies for a total amount not-to-exceed $1,500,000 and a term of up to 4 years, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD currently purchases office and break room supplies from Arrow Office Supply and the contract expires on February 23, 2020. In an effort to meet the on-going need for office and break room supplies, DWSD Procurement is requesting to utilize the Staples cooperative contract through the State of Michigan MiDeal program. Utilizing the MiDeal Cooperative Contract # 190000000268 allows DWSD to benefit from volume pricing while using minimal resources.
Benefits of this contract include:
• Approximately 2,400 items offered at discounted prices
• Approximately 1,200 core items offered at a deeper discount. Agencies can request items be added to the core list.
• Desktop delivery within one business day with a minimum order of $35 per order
• In store purchases available, if needed
• 2% Annual Rebate based on annual total spend
After evaluating a sampling of DWSD’s top 100 most frequently ordered items and the issuance of an ITR, DWSD Procurement recommends a contract be awarded to Staples Advantage, through the use of the State of Michigan MiDeal cooperative contract for office and break room supplies. The total contract amount being requested includes funds to cover the two year contract term and the two one-year renewal options.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums of competitively solicited contracts. MiDeal issued a Request for Proposals in 2018 for office and breakroom supplies and awarded based on the highest ranked proposal.
The DWSD Procurement Policy requires that Detroit Based Businesses (DBB) and Detroit Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the cooperative pricing, provided the DBB or DRB will meet or exceed all terms and conditions of the original cooperative contract.
To ensure compliance, DWSD Procurement issued an Invitation to Respond (ITR) on MITN, which yielded four “Intent to Bid” responses; however, only Audio Visual Equipment & Supplies, Inc. is a certified DBB. The remaining 3 firms did not meet the qualifications of the ITR, nor was their pricing lower than the cooperative prices.
Pricing for the sampling of the top 100 frequently ordered items by DWSD is as follows:
|
Staples Advantage (Coop) |
$88,879.00 |
Cooperative pricing |
|
Arrow Office Supply |
$91,614.79 |
Not a DBB/DRB and not cheaper than cooperative |
|
Audio Visual Equipment & Supplies, Inc. (DBB) |
$97,002.19 |
DBB but not cheaper than cooperative quote |
|
Decima, LLC |
$140,690.53 |
Not a DBB/DRB and not cheaper than cooperative |
|
Image Printing |
N/A |
Did not submit a bid |
SUMMARY
A. Contract Numbers: 6002616
B. Contractor: Staples Contract & Commercial LLC
C. Contract Term: 2/24/20 - 5/31/22, with two 1-year renewal options
D. Contract Amount: $1,500,000
E. Fiscal Year Breakdown: FY 20: $117,647.06
FY 21: $352,941.18
FY 22: $339,622.64
FY 23: $352,941.18 (optional year)
FY 24: $323,529.41 (optional year)
F. Funding Source: O&M Funds
This proposed contract was presented to the DWSD Finance Committee on January 7, 2020. Per the DWSD Procurement Policy, Post FRC Mayoral review may be required.