HomeMy WebLinkAbout(0013) M&C 22-0108City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/22/22 M&C FILE NUMBER: M&C 22-0108
LOG NAME: 13P AMEND COOP AMAZON FMS MG
SUBJECT
(ALL) Authorize an Increase to the Cooperative Agreement with Amazon Services, LLC dba Amazon Business, using OMNIA Partners Purchasing
Agreement R-TC-17006 for the Purchase of Goods in the Amount of $200,000.00, for a Total Annual Amount Up to $500,000.00 for Each Year of
the Term, Authorize Two Two -Year Renewal Options in an Annual Amount Up to $500,000.00 for Each Year of the Renewal Term, and Ratify
Expenditures in an Amount Up to $20,000.00 for All City Departments
RECOMMENDATION:
It is recommended that the City Council authorize an increase to the Cooperative Agreement with Amazon Services, LLC dba Amazon Business,
using OMNIA Partners Purchasing Agreement R-TC-17006 for the purchase of goods in the amount of $200,000.00, for a total annual amount up
to $500,000.00 for each year of the term, authorize two two-year renewal options in an annual amount up to $500,000.00 for each year in the
renewal term, and ratify expenditures in an amount up to $20,000.00 for all City Departments.
DISCUSSION:
On February 18, 2020, Mayor and Council approved an agreement with Amazon Business (M&C 20-0076) in an annual amount of $300,000.00
through OMNIA Partners Cooperative Contract R-TC-17006. Under the cooperative agreement, federal and local governments are able to
purchase goods through Amazon under Business Prime which offers free standard shipping for orders over $25.00 and next day shipping on
items that are in stock.
Staff is requesting that the spending authority for this agreement be increased to $500,000.00 annually and authorize two two-year renewal options
in accordance with the terms of the OMNIA Partners cooperative contract. The OMNIA Partners cooperative contract began on January 19, 2017
and will expire on January 18, 2022 with three additional two-year renewal periods through January 18, 2028. The increase in the spending
authority is requested so that Departments will be able to have an additional supplier for a variety of items due to current supply chain issues.
The maximum amount allowed under this agreement will be $500,000.00 annually, however the actual amount used will be based on needs of the
department and available budget.
The City's current agreement with Amazon Business expired on January 18, 2022. It is requested that City Council approve ratification of
expenditures up to $20,000.00 for any purchases made between January 19, 2022 and the execution of the renewal agreement in February.
COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a Cooperative Purchasing Agreement
satisfies state laws requiring that the local government seek competitive bids for purchase of the item. OMNIA Partners Cooperative contracts are
competitively bid to increase and simplify the purchasing power of government entities across the State of Texas.
ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to
maximum allowed under state law and the City Code and does not require specific City Council approval as long as sufficient funds have been
appropriated.
AGREEMENT TERM -This Agreement will commence upon City Council approval and end on January 18, 2024 to coincide with OMNIA Partners
contract dates.
RENEWAL OPTIONS - This Agreement may be renewed for two additional two-year periods in accordance with the terms of the OMNIA Partners
contract. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the
City's obligations during the renewal term.
BUSINESS EQUITY- A MBE goal is not assigned when purchasing from an approved purchasing cooperative or public entity.
A Form 1295 is not required because: This contract will be with a publicly -traded business entity or a wholly -owned subsidiary of a publicly -traded
business entity: Amazon Services LLC
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budgets, as previously appropriated, in the participating
departments' Operating Funds to support the approval of the above recommendation and execution of the purchase agreement. Prior to any
expenditure being incurred, the participating departments have the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Reginald Zeno 8517
Originating Business Unit Head: Anthony Rousseau 8338
Additional Information Contact: Cynthia Garcia 8525
Michelle Green 2058