REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: MELISSA PERALES, Purchasing Manager General Services Department, Purchasing Division SUBJECT ..Title Approve the award of a citywide requirements contract to W.W. Grainger, Inc. for five years with two one-year optional extensions for the purchase of maintenance and operations supplies, parts, equipment, and materials, in the amount of $600,000 per year plus annual CPI increases. (Bid File 9667) ..Body RECOMMENDATION Staff recommends Council approve the award of a citywide requirements contract to W.W. Grainger, Inc. for five years with two one-year optional extensions for the purchase of maintenance and operations supplies, parts, equipment, and materials, in the amount of $600,000 per year plus annual CPI increases. EXECUTIVE SUMMARY The General Services Department, Purchasing Division is recommending a cooperative purchase agreement with W.W. Grainger, Inc. for the purchase of maintenance and operations supplies, parts, equipment, and materials to be utilized by various City departments on an as-needed basis. The cooperative purchase agreement will be authorized through a competitively solicited cooperative procurement process administered by the City of Tucson, Arizona in partnership with Omnia Partners. BACKGROUND The General Services Department, Purchasing Division is responsible for administering the citywide agreement for maintenance and operations supplies, parts, equipment, and materials. The supplies purchased through this cooperative purchase agreement will be ordered and utilized by various City departments on an as-needed basis. Utilizing the cooperative contract was determined to be the most cost-effective method and overall best value for obtaining maintenance and operations supplies, parts, equipment, and materials for the City. W.W. Grainger, Inc. has one store within the City of Fresno, located at 1335 Tuolumne Street (near the Municipal Service Center), for departments to utilize at a discounted rate when same-day needs arise. The store also provides benefits to the City in terms of both employment and tax revenue. The City will receive an average discounted rate of 16%, based on individual product categories. The City is currently using pricing from a California contracted pricing list and as such, all rebates are currently going to the state. Under the new cooperative purchase agreement, the City will receive rebates at a rate of 2% on the City's net annual spend. The contract allows for a custom core list of the City's most-used and highest-spend items to be targeted for additional discounts. The supplies will be purchased through a competitively solicited cooperative purchase agreement with the City of Tucson, Arizona. The City Attorney has reviewed and approved the contract to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. Under the City of Fresno's AO 8-13, City's Use of Environmentally Preferable Products, all applicable "green" alternatives will be considered prior to the purchase of supplies and accessories. LOCAL PREFERENCE Local preference is not applicable. The City is not issuing a request for proposals for this cooperative purchase agreement. FISCAL IMPACT The funding has been included in each departments' line-item budget as part of the FY2023 adopted budget to cover the cost of maintenance and operations supplies, parts, equipment, and materials. Attachments: Cooperative Purchase Agreement Combined Ads Grainger Contract Proposal Evaluation Original RFP