Report No:

Meeting Date:

Alameda-Contra Costa Transit District

STAFF REPORT TO: Operations Committee

AC Transit Board of Directors

FROM: David J. Armijo, General Manager

SUBJECT: Contract Award, Office Supplies Contract

ACTION ITEM

RECOMMENDED ACTION(S):

14-160

June 11, 2014

Consider approving the District to utilize a cooperative contract with Staples Advantage of Newark, California, for Office Supplies.

EXECUTIVE SUMMARY:

The District sought out competitive Cooperative Purchasing Office Supply Contracts through

informal requests from qualified firms to provide Office Supplies.

The goal of the effort was to obtain the lowest possible pricing and best services for office

supplies to support the District in its operations. Competitive cooperative contracts serve the

District by leveraging their increased purchasing and negotiating power. The use of such

competitively bid cooperative contracts reduces the amount of time and effort individual

organizations may put in to procurements More importantly, cooperative contracts in general,

receive more competitive pricing and better services for generic items, like office supplies, than

AC Transit is able to obtain through our own procurement efforts. Simply stated, our purchase

requirements alone are not enough to attract the level and breadth of pricing discounts

available to us that are contained in cooperative contracts where the expected annual buy can

be several times the spend of AC Transit. These cooperative contract purchasing opportunities

present both time and money savings for their users by consolidating numerous individually

prepared solicitations to one cooperatively shared process and by the aggregation of demand

from members nationwide. Cooperative purchasing laws create the authority for members to

work together. The District only needs to sign-up with a cooperative, given it is eligible, in order

to reap the benefits of its contracts.

BUDGETARY/FISCAL IMPACT:

This procurement will be funded from various sources utilizing District annual operating budgets.

Report No. 14-160 Page 2 of 3

BACKGROUND/RATIONALE:

In March of 2011, the District awarded an Office Supplies contract to Blaisdell's Office Products of San Leandro, CA for three (3) years. That Contract is set to expire June 30, 2014.

There were three (3) companies identified as competitive and eligible firms in possession of public cooperative contract awards, who were notified of the Districts intent to utilize a cooperative contract for office supplies. One of three companies is a small business enterprise (SBE). The District requested that any company responding should provide pricing, per each firm's most advantageous cooperative agreement, for our top two hundred fifty (250) most frequently purchased items from the past two (2) completed fiscal years. Two of the Top 2SO items were manufactured by Disadvantaged Business Enterprises (DBEs). The District also requested that a company should provide any applicable rebates, per the cooperative contracts being used in their response. A total of three (3) timely responses to the District's Informal Request were received.

The District reviewed all of the responses and found the best offer to be from Staples Advantage, of Newark, CA. The District found them to be both responsive and responsible.

BID SUBMISSIONS:

CONTRACTOR #OF LOWEST %of LOWEST TOTAL COST PERCENTAGE PRICED ITEMS PRICED ITEMS OF TOP 250 REBATES OUT OF THE OUT OF THE (QUANTITY OF OFFERED

TOP 250 TOP 250 ONE EACH) BASED UPON RECENT

EXPENDITURES

Staples Advantage 155 62% $ 1,483.47 1%

Blaisdell's Office 50 20% $1,710.16 0.5% Products

Office Depot 45 18% $2,675.97 1.5%

The Staff recommends award of the office supplies contract to Staples Advantage of Newark,

California, for as long as they hold the National Joint Powers Alliance (NJPA) Contract for Office

Supplies or up three (3) years, whichever expires first. AC Transit is a member of NJPA.

NJPA is public corporation or agency serving as a municipal contracting agency, operating under

the legislative authority of Minnesota Statute 123A.21. The NJPA creates national cooperative

contract purchasing opportunities and solutions on behalf of its members which include all

government, education and non-profit agencies nationwide. Eligible members include any unit

of government, education (private or public) or non-profit agencies nationwide. There is no-

cost, no-obligation or liability to join or participate in the NJPA contract purchasing program.

Report No. 14-160 Page 3 of 3

There are no minimum contract purchasing requirements or commitments for members' use of

NJPA contracts.

Additionally, three percent {3%) of the items available through the Staples Advantage NJPA

office supplies contract are manufactured or supplied by Disadvantaged Business Enterprises

(DBEs). Staples Advantage also currently provides access to more than 472 minority and women

owned business enterprise (MWBE) products in forty-nine {49) of its product categories.

ADVANTAGES/DISADVANTAGES:

Advantages of awarding AC Transit's Office Supply Contract to Staples Advantage include:

• Lower prices for the most frequently purchased office supplies • Tiered Rebates for yearly purchasing of office supplies • Free next-day shipping for orders placed before Spm Local Time • Over 20,000 office supply products available for purchase at reduced costs

Disadvantages of awarding AC Transit's Office Supply Contract to Staples Advantage include:

• There are currently no rebates for online ordering through Staples Advantage National Joint Power's Alliance Cooperative purchasing contract

ALTERNATIVES ANALYSIS:

Staff found no practical alternatives to the course of action recommended in this report.

• The District will have to procure an office supplies contract with only its own purchasing power to negotiate discounts.

• The District will have no contract in place and will pay full price for office supplies

PRIOR RELEVANT BOARD ACTIONS/POLICIES:

None

ATTACHMENTS:

1: Pricing of the 250 Items used Evaluate the Most Favorable Cooperative Contract and breakout by Cooperative Contract as to the Most Favored Pricing by Cooperative Contractor.

Department Head Approval: Thomas Prescott, Chief Performance Officer

Reviewed by: Denise C. Standridge, Interim General Counsel James Pachan, Chief Operating Officer

Prepared by: Jon Medwin, Director of Procurement and Materials

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BSN63108 PAPER,PAO,LEGAL,LTR, WE DZ $4.32 PIL26067 PEN,RB,RTR,V7,PV7R,FN,BLK EA $1.23 SWI35450 STAPLES,STO,SPDPT,SF4 BX $1.39

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UNVn210 CLIP,/t1,GEM,SMOOTH PK $0.99 UNV83412 TAPE,INVISIBLE,CLR PK $6.44 WW384448 BINOER,D·RG,VNL,Z"C,BLK EA $5.42 SAN35539 MARKER,PAINT,SHARPIE,FN,YEL EA $1.49 SAN65871 PEN,GEL,RTR,207 IMPACT,BLO,BLU EA $1.67

$5.26 $4.94 $5.16 $5.18

$24.63 $28.42 $1.10 $1.10 $6.95 $7.89 $2.05 $3.44 $1.97 $3.21 $1.25 $3.39 $0.46 $0.85 $1.06 $10.63

$2.60

$2.71 $3.22 $30.70 $10.26

$1.91 $28.99 $2.02 $22.99 $2.18 $22.99 $2.76 $2.50

$2.88 $7.34 $2.68 $6.99

$5.18 $4.87 $2.14 $25.19

$29.18 $5.75 $5.89 $5.99

$8.36 $7.06 $4.99 $2.43

$7.32 $4.40

$9.20 $3.03 $2.93 $28.99 $2.51 $4.71

$9.70 $10.34 $8.02 $3.77

$1.59 $13.33 $2.50 $2.73

$9.73 $10.88

$3.47 $5.49

$2.15 $0.69

$6.16 $5.14

$5.42 $5.30

$2.04 $5.87

$1.65 $20.45

VENDOR WITH LOWEST PRICE

STAPLES

BLAISDELL'S

STAPLES

B/ODM

STAPLES

STAPLES BLAISDELL'S BLAISDELL'S

BLAISDELL'S

STAPLES OFFICE DEPOT /MAX

BLAISDELL'S OFFICE DEPOT /MAX

STAPLES

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STAPLES STAPLES

STAPLES OFFICE DEPOT/MAX

STAPLES

STAPLES OFFICE DEPOT/MAX OFFICE DEPOT/MAX

OFFICE DEPOT/MAX STAPLES

STAPLES

STAPLES

OFFICE DEPOT/MAX

STAPLES STAPLES

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STAPLES

OFFICE DEPOT/MAX

OFFICE DEPOT/MAX

OFFICE DEPOT/MAX

STAPLES

BLAISDELL'S

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$1,483.47

VENDORS LOWEST PRICE {OUT OF 250 ITEMS)

STAPLES 155

BLAISDELL'S so OFFICE

DEPOT/MAX 45

$1.52 $3.29 $3.22 $14.37

$16.70 $6.75

$15.19 $15.59

$16.93 $18.41

$13.14 $12.15 $24.29

$4.64 $9.09

$13.17 $8.24 $35.01 $39.99

$1,710.16 $2,675.97

VENDOR WITH LOWEST PRICE

STAPLES

BLAISDELL'S

OFFICE DEPOT/MAX

BLAISDELL'S

STAPLES OFFICE DEPOT/MAX

STAPLES

STAPLES

OFFICE DEPOT/MAX

BLAISDELL'S

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