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SR 06-27-2017 3G Ci ty Council Report City Council Meeting : June 27, 2017 Agenda Item: 3.G 1 of 3 To: Mayor and City Council From: Gigi Decavalles -Hughes, Director , Finance Department, Procurement Subject: Award Bid for Purchase of Citywide Recycled Content Copy Paper Recommended Action Staff recommends that the City Council : 1. Award Bid #4267 to Xped ex, a California -based company, for the purchase and delivery of recycled content office copy paper; and 2. A uthorize the Purchasing Services Manager to issue purchase orders with Xpedex for the purchase and delivery of office copy paper in an amount not to e xceed $393 ,000, including a 10% contingency, over a five -year period, with future funding contingent on Council budget approval. Executive Summary The City purchases recycled content copy paper for all 26 City facilities and locations. The City’s current contract with Liberty Paper will expire on June 30, 2017. In May 2017, the City conducted a formal bid process for recycled content copy paper and received four bids. After reviewing the bids, staff recommends Xpedex as the best bidder for an amount not to exceed $393 ,000 , including a 10% contingency, over a five - year period. Background The City purchases recycled content copy paper for use at all City locations in adherence with the City’s Administrative Instruction on Office Paper dated October 20, 20 08 . This policy requires 20 lb. paper with 100% post -consumer waste (PCW) recycled content. The C ity currently buys approximately 1700 cases of letter size paper and 15 cases of legal size paper annually. Although the City aims to reduce the use of offi ce paper in the future, current procedures require the use of hard copy documents resulting in the continued purchase of office copy paper. Discussion Vendor Selection On May 9, 2017, the City published Notices Inviting Bids to furnish and deliver recycle d 2 of 3 content copy paper in accordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Six hundred ten (610) vendors were notified, and a total of 28 vendors downloaded the bid. Four bids were received and publicly opened on May 25, 2017 as shown in the table below. Xpedex DD Office Products Broadline Distributing Office Depot Item Unit Cost Cost Cost Co st Letter Size Paper 8 ½ x 11 (10 Reams x 500 Sheets) case $41.50 $54.50 $47.30 $24.99 *Pricing valid 05/01/17 – 09/30/17 Legal Size Paper 8 ½ x 14 (10 Reams x 500 Sheets) case $56.00 $64.50 $60.00 $24.99 *Pricing valid 05/01/17 -09/30/17 Post -Consumer W aste Recycled Content 100% 100% 30% No response Staff in Finance and the Office of Sustainability and the Environment (OSE ) evaluated bids based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of produ ct, and compliance with City specifications. Of the four bids received , two were considered non -compliant (Broadline Distributing and Office Depot). Broadline Distributing offered product with only 30% post -consumer recycled content, and Office Depot p rovided pricing for only a five -month period and did not submit responses to the required supplemental questions. Both Xpedex and DD Office Products proposals met City specifications. However, Xpedex offered the most competitive pricing. Based on the cr iteria above, Xpedex is recommended as the best bidder. 3 of 3 Financial Impacts and Budget Actions Purchase orders will be entered by individual departments for a cumulative total not to exceed $393 ,000 , including a 10% contingency, over a five -year period. Fu nds are included in the FY 2017 -19 P roposed Biennial B udget in the individual departments. Future year funding is contingent on Council budget approval. Prepared By: Kellee MacDonald, Senior Buyer Approved Forwarded to Council Attachments: A. Xpedex Oaks Initiative Form