SR-02-11-2014-3GCity Council Meeting: February 11, 2014
Agenda Item: 3® G
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Professional Services Agreement for Knoll Furniture Procurement and
Consulting Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Western Office Interiors, a California -
based company, to provide Knoll furniture procurement and consulting services for
three years in an amount not to exceed $620,000, with future year funding contingent
on Council budget approval.
Executive Summary
Over the past three fiscal years, the City has purchased approximately $620,000 in
office furniture with an annual average of $200,000 from Knoll authorized vendors. This
project would provide Knoll furniture and procurement consulting services for City office
furniture needs in an efficient and cost - effective manner. Staff recommends Western
Office Interiors to provide these services over three years for an amount not to exceed
$620,000.
Background
The City maintains approximately 170,000 square feet of municipal office space (leased
and City- owned) dispersed in one primary and multiple satellite offices. There are
approximately 2,000 full time and 500 temporary City employees. Over the past three
years, the City has spent approximately $620,000 on Knoll product bid competitively on
an as- needed basis. Office modernizations, moves, staffing changes and normal wear
and tear drive the need for furniture procurement and consulting services.
Recent and pending furniture requests include new furniture for divisions in Public
Works, the City Manager's Office, Planning and Community Development and Finance.
These orders vary in scope and size from two to eight work stations. Additionally, a
remodel of City Hall Room 110 is anticipated which would require approximately ten
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work stations. All projects are planned pending funding availability. The amount of
procurement services would vary based on City needs and funding which are difficult to
predict in the long term.
In 2013, the City implemented space planning and office design standards to guide the
ongoing development of City occupied office space. The City standard for workplace
furniture in all City offices is Knoll product (primarily the Morrison line). Knoll sells its
products only through authorized vendors in order to preserve warranty protections and
ensure the product meets City specifications. There are three Knoll authorized vendors
in the Greater Los Angeles region, two in Los Angeles County, and one in Orange
County.
Reorganizations, tenant improvements and personnel changes impact office setups and
result in furniture moves and realignments that usually require some new product to
integrate with existing stock. The City stores surplus Knoll furniture parts and pieces
which are utilized before the procurement of new furniture is authorized. All Knoll
furniture left over after a remodel is inventoried and stored in the City's warehouse for
future City use in order to increase sustainability and cost effectiveness.
Discussion
Furniture orders require long lead times due to manufacturing practices and
comprehensive design services (necessary to measure, design and specify products
and quantities). The process to bid out each order contributes to these delays,
especially given the high volume of smaller projects. By eliminating bid times, this three
year agreement would reduce staff time and costs in managing these projects, allowing
for smoother transitions as City staffing needs evolve.
Typical furniture procurement and consulting needs most often fall into the following
categories:
® Workstation reconfigurations with existing furniture
• Workstation reconfigurations with a blend of existing and new furniture
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® New workstations in existing office plans
• Comprehensive office remodel with newly procured furniture utilizing minimal
existing inventory
® Complete office remodels with newly procured furniture only
Consultant Selection
On November 13, 2013, the City published a Request for Proposals (RFP) to provide
Knoll furniture procurement and consulting services to the City over the next three
years. The RFP was posted on the City's online bidding website and published in the
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. A total of 17 firms obtained the RFP package. Two proposals were received.
Proposals were evaluated on criteria listed in the RFP, including price, successful prior
experience working on projects with the City and timely completion of prior City projects.
System Source, Inc. was the lowest bidder, but received lower scores on successful
prior experience and timely completion of City projects. Delays in furniture delivery can
postpone moves and create additional costs of rent and staff time.
Western Office Interiors, the second bidder, provided more relevant project experience
as well as a successful track record of previous work history with the City. Additionally,
Western Office Interiors offered a commitment to a response time for inquiries of two
business days during firm interviews. Based on these criteria and in accordance with
SMMC 2.24.072, staff recommends Western Office Interiors as the best bidder to
provide furniture procurement and consulting services.
The professional service agreement with Western Office Interiors would be for a total
amount not to exceed $620,000 over three years.
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Financial Impacts & Budget Actions
The professional services agreement to be awarded to Western Office Interiors is for a
total amount not to exceed $620,000 over three years. Funds are available in FY 2013-
14 in various capital improvement program budgets managed by divisions with furniture
needs. Services will be performed only if funds are available in the appropriate
accounts. Budget authority for subsequent years will be requested in each budget cycle
for Council approval. Future funding of purchases is contingent upon Council approval.
Prepared by: Jean Bellman, Architect
Approved:
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9873
(CCS)