AGENDA MEMORANDUM

 

 

Meeting Date:           November 10, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing an agreement with Capital Office Products, Inc. to provide office products and supplies as needed

 

 

Staff Recommendation:

Staff recommends approval of the resolution authorizing an agreement with Capital Office Products, Inc. to provide office products and supplies, as needed.

 

Analysis:

Departments within the City of Leesburg have the need to purchase office products and supplies necessary to their regular operation.  The purpose of this agreement is to contract with an interested and qualified company to provide office products and supplies at the quoted unit prices and discount percentages.

 

This solicitation was issued as a cooperative effort between Lake County Procurement Services and the City of Leesburg.  The City’s participation in this solicitation with Lake County allows us to benefit from their higher usage of this commodity.  The pooled usage of both agencies will result in lower pricing than the City could obtain on our own.

 

On June 13, 2008 Lake County Procurement Services issued county Request for Proposal (RFP) 08-0616.  On July 9, 2008 the county received three responses to the RFP.

 

Three Lake County staff members and I evaluated the proposals from interested firms. The committee determined that Capital Office Products offered the best pricing as well as meeting all the requirements for service, on-line ordering, and reporting.

 

This agenda item was initially presented to the commission on September 8, 2008.  At that time the Commission identified several concerns about unit prices on the Core Item Pricing list.  I have renegotiated pricing on those items whose prices seemed high.  I either requested the vendor to submit a revised price or propose an equivalent item having better pricing.  The attached revised Core Item Pricing list reflects the new pricing as well as new total cost based on estimated annual quantities.

 

In order to receive the best pricing, an office product contract for large organizations typically includes a core list and a discount percent off other categories not in the core list.  The core list is defined by the City and will include the City’s high use items.  The vendor is able to give the best pricing on the core list of known items.  Departments are encouraged to use items from the core list as much as possible to realize the biggest savings.  The Purchasing Division will monitor City purchases and adjust the Core Product List based on actual usage.  The City can remove items no longer used and add items used more frequently.  Active management of the Core List and encouraging departments to purchase items on the Core List is the key to controlling costs for office products.

 

Discounts on printer toner and ink cartridges are an additional component to this contract.  Capital Office Products was very aggressive in their discount provided for printer cartridges.  Authorized wholesalers receive rebates from Hewlett Packard based on their sales volume.  Capital has added these rebate amounts into the discount they are offering.  Printers are used by city departments on a daily basis and the cost of printer supplies has increased substantially in the past several years.  The 60% discount on new cartridges offered by Capital will result in significant savings to the City.  A price comparison sheet is attached for your review.  This sheet lists each model and quantity of printer currently used by the City.

 

Included here is a summary of the attached detailed price comparison sheets.

 

Category

Capital Office Products

Ernie Morris Enterprises

Core Item Listing

$51,278.31

$61,542.69

Toner Cartridges

$9,140.88

$13,546.78

Non Core Discount

60% Off

55.1% Off

Office Furniture Discount

55% Off

46.7% Off

Office Machines

40% Off

28.2% Off

 

Evaluation items to note:

 

 

 

Several departments within the City of Leesburg have been approved to use Capital Office Products for about six months.  At that time, and currently, Capital offered better pricing than Office Depot on copy paper and many other items.  The departments using Capital office products have been very satisfied with their pricing and service.  In one instance, the Finance Department solicited quotes from both Capital Office Products and Ernie Morris Enterprises on the purchase of four items.  Capital Office Products was $34.34 less than Ernie Morris Enterprises.

 

The initial term of the contract will be for one year from the date of execution and provides for four  one-year renewals.

 

Options:

1.  Approve execution of the agreement with Capital Office Products, Inc.; or

2.  Direct the Purchasing Manager to withdraw from participation in the listed RFP and issue an

     Invitation to Bid (ITB) for the purchase of office supplies.

 

Fiscal Impact

The exact fiscal impact is unknown as it depends on actual purchases by departments throughout the term of the contract.  Based on the significant discount percentages, the City should realize a cost savings with this new contract.

 

Submission Date and Time:    11/6/2008 5:07 PM____

 

Department: _Finance________________

Prepared by:  _Mike Thornton__________                     

Attachments:         Yes__X_   No ______

Advertised:   X___Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. ___________JB______                                     

                              

Deputy C.M. ________EFS_________                                                                         

Submitted by:

City Manager ___________________

 

Account No. ____NA__________

 

Project No. _____NA__________

 

WF No. ________NA___________

 

Budget  ________NA___________

 

Available _______NA___________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH CAPITAL OFFICE PRODUCTS, INC. FOR PROVIDING OFFICE PRODUCTS AND SUPPLIES; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with CAPITAL OFFICE PRODUCTS whose address is 700 Ballough Rd., Daytona Beach, Florida 32114-2210 for providing office products and supplies on an as needed basis pursuant to Lake County and City of Leesburg cooperative Request for Proposal 08-0616.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __10th___ day of __November__ 2008.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

___________________________________

City Clerk