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HomeMy WebLinkAboutContract 57630-A3CSC No. 57630-A3 AMENDMENT NO.3 TO CITY OF FORT WORTH CONTRACT 57630 This Amendment is entered into by and between the City of Fort Worth (hereafter "City"), and W. W. Grainger, Inc., ("Vendor"). City and Vendor may be referred to individually as a Party and collectively as the Parties. WHEREAS, on May 31, 2022, the Parties entered into City Secretary Contract 57630 for Vendor to provide for maintenance, repair and operating supplies, parts, equipment materials and related services for all City departments. ("Agreement"); WHEREAS, the Parties wish to amend the Agreement to increase the total compensation amount allowed under the Agreement by $3,900,000.00 for a new total amount up to $6,300,000.00, as authorized by Mayor and Council Communication No. 24-0471 (06/11/24). NOW, THEREFORE, the Parties, acting herein by the through their duly authorized representatives, enter into the following agreement: 1. AMENDMENTS Paragraph 4, the Compensation provision of the Agreement, shall be deleted in its entirety and amended to read as follows: City shall pay Vendor in accordance with the fee schedule in Exhibit A and in accordance with the provisions of this Agreement. Total payment made under this Agreement shall not exceed Six Million Three Hundred Thousand Dollars ($6,300,000.00). Vendor shall not provide any additional items or services or bill for expenses incurred for City not specified by this Agreement unless City requests and approves in writing the additional costs for such services. City shall not be liable for any additional expenses of Vendor not specified by this Agreement unless City first approves such expenses in writing. 2. ALL OTHER TERMS SHALL REMAIN THE SAME All other provisions of the Agreement which are not expressly amended herein shall remain in full force and effect. 3. ELECTRONIC SIGNATURE This Amendment may be executed in multiple counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. A facsimile copy or computer image, such as a PDF or tiff image, or a signature, shall be treated as and shall have the same effect as anoriginal. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX ACCEPTED AND AGREED: CITY OF FORT WORTH: ter,, 4C. By: Name: Fernando Costa Title: Assistant City Manager Date: .tun 18, 2024 APPROVAL RECOMMENDED: CGt���ttodGte� �taY�fe� By: Christopher Har r (Jun 18, 2024 10:14 CDT) Name: Chris Harder Title: Water Director ATTEST:"io90 gd444dR� a F FORT °°a p-o ° o A ..Tgas�a Oaan nEzo?4pp By: Name: Jannette Goodall Title: City Secretary Vendor: W.W. Grainger, Inc By: Kimberly SaraEi (Jun 18,209:'<e CDT) Name: Kimberly Sarafidis Title: Account Manager CONTRACT COMPLIANCE MANAGER: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. sr't�'s a-76..z By: r Name: Shatabya Bergland Title: Contract Compliance Specialist APPROVED AS TO FORM AND LEGALITY: uJ By: Name: Jessika Williams Title: Assistant City Attorney CONTRACT AUTHORIZATION: M&C: 24-0471 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX City of Fort Worth, Texas Mayor and Council Communication DATE: 06/11/24 M&C FILE NUMBER: M&C 24-0471 LOG NAME: 13PAMEND 16-0448 MRO EQUIPMENT MJR CITY HO WTR SUBJECT (ALL) Authorize Execution of Amendment to the Purchase Agreement with W.W. Grainger, Inc. Using Omnia Partners Cooperative Agreement 192163 to Increase the Authorized Annual Amount by $4,000,000.00 for a New Annual Amount Up to $6,300,000.00 for Maintenance, Repair and Operating Supplies, Parts, Equipment, Materials and Related Services for All City Departments RECOMMENDATION: It is recommended that the City Council authorize the execution of an amendment to the purchase agreement with W.W. Grainger, Inc. using Omnia Partners Cooperative Agreement 192163 to increase the authorized annual amount by $4,000,000.00 for a new annual amount up to $6,300,000.00 for maintenance, repair and operating supplies, parts, equipment, materials and related services for all City departments. DISCUSSION: On October 18, 2016, the City Council approved Mayor and Council Communication (M&C) P-11954, which authorized an agreement with W.W. Grainger, Inc. in the annual amount of $1,500,000.00 for industrial maintenance, repair and operating supplies through December 14, 2019, with three one-year renewals. On December 14, 2019, the City Council approved M&C 21-0959 which increased the authorized annual amount by $300,000.00 for a new annual amount up to $1,800,000.00 and added two one-year renewal options. On May 21, 2024, the City Council approved M&C 24-0445 which increased the authorized annual amount by $500,000.00 for a new annual amount up to $2,300,00.00. However, after completion of M&C 24-0445, it was discovered that due to newer initiatives and programs, the City's expected spending with W.W. Grainger would be increased. This agreement is utilized by various departments to purchase maintenance, repair, and operating (MRO) supplies that consist of parts, equipment, materials, and related services. Some examples include saw blades, work gloves, deep impact sockets, hammers, pliers, flexible tap saddles, and lubricants for diesel engines. W.W. Grainger, Inc. also recently started offering a vendor -managed service free of charge that several departments are utilizing. While there is no cost for the program or the equipment for the program, this has resulted in more strategic ordering. Through this program, W.W. Grainger, Inc. provides the MRO supplies through a vending system and manages the inventory for the City department; the City department sets the minimum and maximums for each item included in the vending machine and the program tracks each item to a specific employee. Other City departments use W.W. Grainger Inc.'s on -site service reps who manage the inventory on a bi-weekly basis. These vendor -managed services are saving the departments time and ensuring the departments have the products they need to operate. Based on current spending and forecasting, the City is seeking to increase the authorized spend amount by $4,000,000.00 for a new annual amount up to $6,300,000.00 to accommodate the departments' increasing demand for MRO supplies. COOPERATIVE PURCHASE - State law provides that a local government purchasing items under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for the purchase of the item. Omnia Partners Cooperative Agreement 192163 was competitively bid to increase and simplify the purchasing power of government entities across the State of Texas. AGREEMENT TERMS: The current term of this agreement will expire on December 31, 2024, with no renewal options remaining. DVIN-BE: Business Equity: A M/WBE goal is not assigned when purchasing from an approved purchasing cooperative or public entity. Funding: The maximum amount allowed under this agreement will be $6,300,000.00; however, the actual amount used will be based on the need of each department and available budget. This amendment will not change any other agreement terms. This project will serve ALL COUNCIL DISTRICTS. 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: W. W. Grainger, Inc FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the participating departments' Operating Funds to support the approval of the above recommendation and execution of the amendment to the agreement. Prior to any expenditure being incurred, the participating departments have the responsibility to validate the availability of funds. Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517 Fernando Costa 6122 Oriainatina Business Unit Head: Reginald Zeno 8517 Christopher Harder 5020 Additional Information Contact: Jo Ann Gunn 8338 Heather Oakes 8354 Expedited Signature:SoU`,1 Email: allison.tidwell@fortworthtexas.gov