Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to modify six (6) existing Universal Term Contracts (UTC's) with Grainger, Inc. for the option to obtain Plumbing Supplies, Raingear and Winterwear, Small Tools, Small Electric Motors, Protective Safety Footwear and Personal Safety Products. These contracts provide for apparel, footwear, building and industrial supplies for a wide range of uses throughout the city departments. This modification is necessary due to a change in Grainger's pricing structure. These contracts are based on a discount off of list price and Grainger has instituted a revision of their base pricing structure which results in a change in the discount off of list for each of these contracts. A comparison has been made of the most frequently ordered items from each of these contracts and a lower price will be realized in 115 of the 136 items compared. The Purchasing Office recommends we revise the pricing structure as the new pricing will be in the best interest of the City and will result in overall cost savings. These contracts were established in accordance with Request for Quotations as follows:
Plumbing Supplies, PO017510, RFQ001557 expires 3/31/2019
Raingear and Winterwear, PO090104, RFQ006625 expires 9/320/2020
Small Tools, PO007797, SA006135 expires 5/31/2019
Small Electric Motors, PO008375, SA006141 expires 5/31/2019
Protective Safety Footwear, PO028540, RFQ001465 expires 7/31/2018
Personal Safety Products, PO076909, RFQ005418 expires 6/30/2020
Each department must obtain approval to expend from their own budgeted funds for their estimated expenditures from these option contracts. All of these contracts were originally competitively bid and this modification will result in lower overall costs. The Purchasing Office does not anticipate any better pricing if new bidding was to be conducted for these commodities.
FISCAL IMPACT: No funding is required to modify the option contracts. Oth...
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