SR-205-003 (375)
e
e
b-J
MAR 8 1988
Zt?5'-007
PURCH:EOB:PW:klc
Council Meeting: March 8, 1988
Santa Monica, California
TO:
Mayor and City council
FROM:
City staff
SUBJECT: Recommendation to Award Bid for Duplicating Paper
Supplies, Bid #2162
INTRODUCTION
This report concerns award of bid to furnish and deliver miscel-
laneous duplicating paper for a one-year period at specified unit
prices and carton price break for items not listed on the bid,
plus applicable sales tax, and renewal options for two additional
years.
On January 27, 1987, council approved a bid award for one year to
provide duplicating paper supplies. At that time, Council also
directed staff to explore the possibility of purchasing recycled
paper.
Subsequently, Council was informed that staff had
purchased some recycled paper, the recycled paper had been
successfully used in the City's bond paper copiers, and that the
quality of the recycled paper was adequate for many of the City's
needs. However, staff also informed Council that at that time
recycled paper cost more than virgin pulp paper, but that staff
would search for more cost-effective recycled paper. Therefore,
the current bid request asked for recycled paper prices in
addition to virgin paper prices for selected paper items.
- 1 -
~JB
e
e
BACKGROUND
In response to published Notices Inviting Bids (published
January 19 and 20, 1988) to furnish and deliver duplicating paper
in accordance with city specifications, bids were received and
publicly opened and read on February 9, 1988.
Proposal forms
were mailed to nine vendors and notices were advertised in
accordance with City Charter and Municipal Code provisions. Four
proposals were received as follows:
A. Bid #1 - Virgin Pulp (cost of a representative array of
duplicating paper)
Kirk Paper Co.
$164,137.93
Kelly Paper
$168,904,20
Zellerbach Paper
$173,720.84
Singjoy Paper Co. (WMBE)
$183,779.79
B. Carton price break for paper required, other than those
listed on bid:
Kirk Paper Co.
*(10,000
published
ordered. )
lb. price break
price regardless
*10,000 Ibs.
*10,000 lbs.
*10,000 lbs.
No Bid
is the distributors lowest
of the number of cartons
Kelly Paper
Zellerbach Paper
Singjoy Paper Co.
In accordance with the request of City Council, staff has
evaluated bid #2 for recycled paper versus virgin pulp. Only one
bid was received and analyzed as follows:
- 2 -
e
e
Bid #2 - Recycled Paper
Conservatree Paper Co. (items 1-4 only)
ESTIMATED PRICE TOTAL
DESCRIPTION CONSUMPTION PER CASE EST. COST
1. 8 1/2 x 11 - White 2,500 $32.88 $82,200.00
2. 8 1/2 x 11 - Colors 150 $38.88 $5,832.00
3. 8 1/2 x 14 - White 350 $41. 52 $14,532.00
4. 8 1/2 x 14 - Colors 75 $49.44 $3,708.00
TOTAL $106,272.00
Bid #1 - Virgin Pulp
Kirk Paper Co. (items 1-4 only)
DIFFERENTIAL
EST. PRICE TOTAL FROM VIRGIN
DESCRIPTION CONSUMP. PER CASE EST. COST PULP EST. COST
1. 8 1/2 x 11
White 2,500 $23.58 $58,950.00 + $23,250.00
2. 8 1/2 x 11
Colors 150 $27.31 4,096.50 + 1,735.50
3. 8 1/2 x 14
White 350 $29.99 10,496.50 + 4,035.50
4. 8 1/2 x 14
Colors 75 $34.79 2,609.25 + 1,098.75
TOTAL $76,152.25 + $30,119.75
Conservatree Paper Co. did not bid on the other thirteen items in
the bid. The above analysis clearly shows that it would cost the
City substantially more to purchase recycled paper versus virgin
pulp. In addition, the delivery time for recycled paper is 45
days after receipt of order versus two days on virgin pulp.
- 3 -
.
, .
e
e
staff has evaluated the low bid from Kirk Paper Co. and finds
that it meets city specifications.
A bid was received from Unisource Corp. but it did not comply
with the specifications.
They require large shipments to be
released at one time and only agreed to hold their prices firm
for 90 days on items 1-4 rather than our request for six months.
Because of our limited storage space and the bidder's failure to
submit firm prices for a six month period of time, their bid
could not be considered.
BUDGETARY/FINANCIAL IMPACT
Fiscal Year 1987/88 appropriation authority for this purchase is
in the maintenance accounts of various departments.
As the
materials are drawn out of inventory, they will be expensed
against available FY 1987/88 appropriation authority.
For the
period July 1, 1988, through February 28, 1989, appropriation
authority will be as set forth in the FY 1988/89 budget.
RECOMMENDATION
It is recommended that the award of Bid #2162 be made to Kirk
Paper Co. for a one-year period at specified unit prices and
carton price break for items not listed on the bid, plus
applicable sales tax, and renewal options for two additional
years, as the lowest and best bidder.
Prepared By:
E. O. Barnes, Purchasing Agent
Pam Wortham, Assistant Purchasing Agent
f2162cc-03/02/88
- 4 -