SR 12-18-2018 3U
City Council
Report
City Council Meeting: December 18, 2018
Agenda Item: 3.U
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Procurement
Subject: Authorization to Purchase from Six Vendors Through an Internal
Online/Electronic Marketplace
Recommended Action
Staff recommends that the City Council:
1. Authorize the Procurement Manager to purchase goods and services though an
internal online/electronic marketplace with CDW-G, an Illinois-based company;
Grainger, an Illinois-based company; Ricoh, an Ōta, Tokyo, Japan-based
company; Royal Corporation, a California-based company; Supply Works, a
Georgia-based company; and Waxie Sanitary Supply, a California-based
company;
2. Authorize purchases of goods and services through an internal online/electronic
marketplace as an exception to the competitive bidding process pursuant to
Section 2.24.080 (b) where the City would purchase from cooperative purchasing
agreements for a total amount not to exceed $3,235,400 over a five-year period
with CDW-G, an Illinois-based company; Grainger, an Illinois-based company;
and Ricoh, an Ōta, Tokyo, Japan-based company; and
3. Authorize purchases of goods and services for a total amount not to exceed
$1,659,400 over a two-year period as an extension of existing City solicitations
with Royal Corporation, a California-based company; Supply Works, a Georgia-
based company; and Waxie Sanitary Supply, a California-based company, for a
total amount not to exceed $4,894,800, with future year funding contingent on
Council budget approval.
Summary
The City is continually striving to make its procurement processes more efficient, attract
the most bidders, and encourage participation among locally-owned, minority-owned
and women-owned businesses. In an effort to make many day-to-day purchases more
efficient, staff seek to implement an eProcurement/eMarketplace customized “Amazon”-
type site (eMarketplace). This eMarketplace would make goods and services for which
the City has already conducted a competitive bidding process or for which contracts
exist with other cooperative purchasing entities available for purchase by City
departments.
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Discussion
In October 2017, staff solicited three quotes and entered into a contract with
eProcurement and Spend Management Solutions (ESM Solutions) to implement an
eMarketplace for the City. The anticipated launch date is February 4, 2019, and staff is
requesting authority to purchase with the following vendors:
Vendor Name State Based Good/Service Term
(Years)
Total
1) CDW-G Illinois Computer supplies, parts, and
accessories
5 $414,500
2) Grainger Illinois Industrial supplies and equipment 5 $748,300
3) Ricoh Ōta, Tokyo,
Japan
Parts, labor, and toner for all Ricoh
multifunction machines (Excludes
Paper)
5 $2,072,600
4) Royal Corporation California Custodial supplies 2 $488,200
5) Supply Works Georgia Custodial supplies 2 $468,600
6) Waxie Sanitary
Supply
California Custodial supplies 2 $702,600
Total $ 4,894,800
eMarketplace
Staff’s implementation of an eMarketplace site utilizing the purchasing power of the
cooperative purchasing agreements and City solicited bids for goods and/or services
would create an automatic approval workflow, improve compliance and potentially lower
costs by using a standard set of catalogs and pricing, and increase transparency as
spending data and analytic information could easily be converted to management
reports. This method could also tie most purchases to the City’s purchasing card,
reducing cost and time for check printing, improving cash management, including
increasing the amount of the rebates earned on purchasing card transactions.
The goods and/or services that would be purchased using eMarketplace are for
frequently purchased goods and/or services that are already budgeted. No additional
budget would need to be appropriated to implement eMarketplace with the
recommended vendors. Staff currently purchase these items via direct invoice or
blanket purchase order and do so with no guarantee they are getting accurate pricing.
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Currently, the Procurement Division processes an average of 1,400 Blanket Purchase
Orders (BPOs) each fiscal year. BPOs are used for the purchase of specific goods
and/or services on a demand basis over one fiscal year. No quantities are specified or
guaranteed. The Accounts Payable section of the Finance Department processes an
average of 120,000 invoices and issues an average of 25,000 checks each fiscal year.
A total of 173 BPOs, 5,905 invoices, and 520 checks were issued to the 16 vendors
recommended for inclusion in the eMarketplace last fiscal year (FY 2017-18).
As shown in Figures 1 and 2 below, significant staff time and steps would be saved in
the Procurement Division, Accounts Payable section, and user departments by
eliminating the need for BPOs, invoices, and checks for these 16 vendors.
Fig. 1 Existing process currently followed to purchase goods and/or services from recommended vendors.
Fig. 2 Recommended and significantly minimized process using eMarketplace to purchase goods and/or services from
recommended vendors.
Piggybacking/Cooperative Procurement
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Many governments across the country use cooperative procurement to achieve greater
value in their purchases. Joining with other entities can significantly reduce
administrative costs and leverage the benefits of economies of scale. The City has
already been using cooperative procurement as part of its toolkit. Two existing
examples include piggybacking off other public agency competitive bids as well as
purchasing goods and services off CMAS (and perhaps other) contracts where a
consortium competitively bids prices for various products and services which are then
guaranteed to the consortium’s members.
Cooperatives can substantially reduce the administrative costs associated with the
creation and award of solicitations and can reduce the time between the department’s
request for a good and/or service and delivery, especially for very common items like
the goods and/or services recommended for use in eMarketplace. These items have
already been bid and contracted by so many different entities using cooperatives that it
would be very hard to get better pricing if the City bid these items on its own.
The use of cooperatives would allow staff to focus on more complex solicitations
associated with many stakeholders that may require forward-thinking solutions, carry
greater consequences, or support the City’s strategic goals.
Vendor Selection
CDW-G, Grainger, and Ricoh have cooperative purchasing agreements which require
Council authority. All agreements were reviewed by the Procurement Manager to verify
that best practices and SMMC policies and procedures were followed. The cooperative
solicitation process and contract were approved as valid. Royal Corporation and Supply
Works (previously Clean Source) have been awarded citywide bids but now require
Council approval for increased authority (Attachment A & B).
A summary of each vendor included in this request for authority is detailed in the tables
below including information about the authority requested, the good and/or service, the
solicitation, and the justification where applicable.
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Authority Requested via Cooperative Piggyback for Five Years
Vendor Good/Service Solicitation/Pricing Justification Authority
Requested
CDW-G Computer
supplies, parts &
accessories
Piggyback off
Sourcewell
(previously National
Joint Powers
Alliance (NJPA))
Contract #100614-
CDW
Adding this vendor to eMarketplace
would eliminate the issuance of at
least one BPO, the processing of at
least seven invoices, and the
processing of at least five checks.
$ 414,500
Grainger Industrial supplies
& equipment
Piggyback off
National
Association of State
Procurement
Officials (NASPO)
ValuePoint Master
Agreement No.
8496
Adding this vendor to eMarketplace
would eliminate the issuance of at
least nine BPOs, the processing of
at least 283 invoices, and the
issuance of at least 61 checks.
$ 748,300
Ricoh Multi-function
machines Parts,
labor, and toner
for all Ricoh
multifunction
machines
(Excludes Paper)
Piggyback off
NASPO ValuePoint
Master Agreement
No. 3091. PA No. 7-
15-70-25.
Staff utilize this vendor for parts,
labor, and toner for all existing
Ricoh multifunction machines,
excluding paper. The agreement
would only cover existing
equipment, no new equipment.
Staff plan to go out to bid for
managed print services soon.
Adding this vendor to eMarketplace
would eliminate the issuance of at
least 30 BPOs, the processing of at
least 481 invoices, and the
issuance of at least 56 checks.
$ 2,072,600
Total $ 3,235,400
Authority Requested to Extend Existing City Agreement Two Years
Vendor Good/Service Solicitation/Pricing Justification Authority
Requested
Royal
Corporation
Custodial
supplies
City of Santa Monica
Bid No. 4179
approved by Council
March 23, 2015
(Attachment B).
Staff is requesting additional funding
to cover the two additional years.
Adding this vendor to eMarketplace
would eliminate the issuance of at
least five BPOs, the processing of at
least 61 invoices, and the issuance
of at least 29 checks.
$ 488,200
Supply
Works
(Clean
Source)
Custodial
supplies
City of Santa Monica
Bid No. 4179
approved by Council
March 23, 2015
(Attachment B).
Staff is requesting additional funding
to cover the two additional years.
Adding this vendor to eMarketplace
would eliminate the issuance of at
least three BPOs, the processing of
at least 110 invoices, and the
issuance of at least 32 checks.
$ 468,600
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Waxie
Sanitary
Supply
Custodial
supplies
City of Santa Monica
Bid No. 4179
approved by Council
March 23, 2015
(Attachment B).
Staff is requesting additional funding
to cover the two additional years.
Adding this vendor to eMarketplace
would eliminate the issuance of at
least 13 BPOs, the processing of at
least 509 invoices, and the issuance
of at least 48 checks.
$ 702,600
Total $1,659,400
Past Council Actions
Meeting Date Description
06/09/15 (Attachment A) Award Bid #4179 for Custodial Supplies.
07/25/17 (Attachment B) Purchase of Citywide Printing Equipment and related
Support and Maintenance Services
Financial Impacts and Budget Actions
Staff seeks authority to purchase with the vendors mentioned above through an internal,
online, electronic marketplace for the goods and services mentioned herein.
Purchase Request
Request Amount FY 2018-19 Budget
Department/CIP Account #
Total Contract Amount
$1,294,700 Various $4,894,800
Future year funding is contingent on Council budget approval. No additional budget
would need to be appropriated.
Prepared By: Heidi Duran, Senior Procurement Analyst
Approved
Forwarded to Council
Attachments:
A. June 9, 2015 Award Bid #4179 for Custodial Supplies (Web Link)
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B. July 25, 2017 Purchase of Citywide Printing Equipment and related Support and
Maintenance Services (Web Link)
C. Ricoh Oaks Form
D. Waxie Oaks Form
E. Royal Corporation Oaks Form
F. CDW-G Oaks Form
G. Supply Works Oaks Form
H. Grainger Oaks Form
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5.Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________