Agenda Item Wording:
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Authorize the City Manager to award a city-wide contract with W.W. Grainger, Inc. by attaching to the Sourcewell contract no. 091422 to provide parts, equipment, and industrial supplies used for maintenance and repair operations city-wide with an annual not to exceed amount of $50,000, and a maximum of $250,000 over the life of the contract. This contract will have an initial 3-year term, which will expire Nov. 8, 2026, and may be extended for two additional 1-year terms, to align with the terms of the Sourcewell contract.
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Deadline for Action: 10/2/2023
Submitting Department: Public Works
Contact Name and Phone Number:
Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
Staff recommends that Council authorize the City Manager to award a city-wide contract with W.W. Grainger, Inc. by attaching to the Sourcewell contract no. 091422 to provide parts, equipment, industrial supplies used for maintenance and repair operations city-wide with an annual not to exceed amount of $50,000, and a maximum of $250,000 over the life of the contract. This contract will be for an initial 3-year term, which will expire on November 8, 2026, and may be extended for two additional 1-year terms, to align with the terms of the Sourcewell contract.
Background Discussion:
Various City Departments utilize W.W. Grainger to purchase supplies for typical operations and maintenance activities. As a well-known industrial supply company, W.W. Grainger supplies over 1.5 million different products and offers next-day delivery on most orders. They provide miscellaneous equipment, parts, and supplies from small electric motors and pumps to various fasteners and specialty tools, to personal protective and safety equipment.
The City’s Purchasing policy dictates that for cumulative purchases over $2,500 annually, a vendor contract must be established, and that the vendor selection be done through a competitive bidding process. Due to the large number and variety of parts, equipment and supplies used at various rates, bidding this specific contract would be complex. Sourcewell procures contracts nationally by soliciting bids through a competitive process that meets or exceeds local requirements. In turn, these contracts become available to local governments to utilize, or attach, which is allowed under the City’s Purchasing Policy.
This contract will help consolidate like-spending among the City’s departments into a single contract, where feasible, and allow for the lowest and best price for the parts and supplies needed.
Historical Spending:
FY2020-21 = $42,926
FY2021-22 = $34,149
FY2022-23 = $38,712
Fiscal Impact:
The pricing included in the Sourcewell contract has been competitively bid based on the supplier’s ability to offer discounted and customer specific pricing. Purchases under this contract will be paid for out of each division’s individual operating budget.
Prior Council Action:
N/A
Alternatives:
The Finance Department could issue a formal Request for Bids for the purchase of these supplies, parts, and equipment. This is not recommended as the purchase prices utilize the competitively bid Sourcewell contract, which represents significant savings off list prices.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to utilize Sourcewell Contract No 091422 with W.W. Grainger, Inc. to provide parts, equipment, and industrial supplies used for maintenance and repair operations city-wide. The contract will be not-to-exceed $50,000 per year, and a maximum of $250,000 over the life of the contract. This contract will have an initial 3-year term which will expire Nov. 8, 2026, and may be extended for two additional 1-year terms, to align with the terms of the Sourcewell contract.
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Attachments:
W.W. Grainger, Inc. - Sourcewell Contract
W.W. Grainger, Inc. - Pricing Information