HomeMy WebLinkAboutIR 8741INFORMAL REPORT TO CITY COUNCIL MEMBERS
di TSB To the Mayor and Members of the City Council
SUBJECT: Office Supplies Contract
f4"S
No. 8741
Date:
January 19, 2006
Page 1 of 2
In September 2005, the Purchasing Division issued a Request for Information (RFI) for catalogue discount
pricing for office supplies from vendors which are known to be cooperative contract holders. Purchasing
cooperatives are formed by public agencies to utilize the increased economic purchasing power of multiple
entities. Three responses were received: Corporate Express (current vendor), Office Depot and Staples.
The RFI required vendors to complete two forms. One form requested information regarding electronic
ordering and billing information, and the other form asked the vendor to insert discount percentages and
prices for a lengthy list of office supplies. Corporate Express did not submit the second form requiring the
discount prices, nor the actual costs for the City's 110 highest -use items. In deference to their current vendor
status, Purchasing staff called Corporate Express for the discounts and actual costs and was advised by
Corporate Express to use the current pricing from the Tarrant County Office Supplies Agreement, the
agreement from which the City has been buying for several years.
chasing staff evaluated the three responses, using Corporate Express' verbal response as to discount
ture. The summarized annual costs are shown below:
Office Depot $591,000 (low bidder)
Corporate Express $700,000 ( +$109,000 / 18.4% higher than low bidder)
Staples $798,000 ( +$207,000 / 35% higher than low bidder)
On Friday, November 25, after M &C * *P -10272 appeared on the City Council agenda, recommending the
award to Office Depot, Corporate Express contacted Purchasing and stated the City had used the incorrect
discount figure for the "Big Book" of supplies, claiming their discount was 80 %, rather than the 65% used in
the Tarrant County contract. Since the Corporate Express discount information had not been submitted in
their response to the RFI, and was taken verbally, Purchasing had no way to prove or refute the claim made
by Corporate Express.
As a consequence of the Corporate Express claim, Purchasing requested M &C * *P -10272 be withdrawn from
the City Council agenda of Tuesday, November 29, for further evaluation.
This evaluation revealed that only a very few items from Corporate Express' Big Book are discounted at
80 %, are not commonly used by the City, and would be insufficient to overcome the bid difference of
$109,000.
As a result, Purchasing will be resubmitting an M &C recommending an award to Office Depot, using the US
C p unities office supplies contract. (US Communities is a purchasing cooperative which the City joined on
w st county or municipal office supplies bid in the United States), The bids for this 2005 contract ranged
}m $14,000,000 to $18,00€1,000 for Los Angeles County alone, creating the largest economies of scale for
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8741
these products. At $14.1 million, Office Depot was the low bidder. The Corporate Express bid was $15.1
million, or 7% higher than the low bid.
The discount prices from Office Depot on the US Communities bid award are the prices the City of Fort
Worth will receive if the proposed M&C is approved.
Both Corporate Express and Office Depot offer identical electronic enhancements such as password-protected
online ordering and customized electronic billing. However, only Office Depot offers local stores, allowing
same day order and pickup by City employees, The local store purchases will be accomplished via City
purchasing card, and pricing is identical to the proposed contract.
Staff recommends approval of the proposed M&C, awarding the office supplies contract to Office Depot via
the City's membership in the US Communities purchasing cooperative. The M&C will be scheduled for the
January 24, 2006 City Council agenda. In the interim, should you have any questions, please contact Robert
Combs, Purchasing Manager at 392-8357, or Jim Keyes, Finance Director, at 392-8517
Charles R. Boswell
City Manager
iq-qi wn RY THE CITY MANAGER FORT' T, TEXAS