REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: MELISSA PERALES, Purchasing Manager General Services Department, Purchasing Division SUBJECT ..Title Reject the proposal received for a requirements contract for uniform and linen services (Bid File 9687) (Citywide) ..Body RECOMMENDATION Staff recommends Council reject the sole proposal received for a citywide requirements contract for uniform and linen services. EXECUTIVE SUMMARY The General Services Department, Purchasing Division, conducted a competitive solicitation for uniform and linen services. The Request for Proposals (RFP) was publicly advertised on July 12, 2024, and proposals were due September 3, 2024. Despite extensive outreach, Purchasing received only one proposal, submitted by Mission Linen Supply. Following a thorough evaluation, the selection committee determined that while the proposer demonstrated industry experience and service capabilities, the proposed pricing would result in a significant increase in costs for affected departments and City employees. The proposal is approximately 79% higher than the City's current contracted rates. Given the lack of competition and financial impact, the committee recommended rejecting the sole proposal. BACKGROUND The General Services Department, Purchasing Division is responsible for administering the citywide agreement for uniform and linen services. As part of this requirements contract, the City provides uniforms to its employees using a cost-sharing model as per the citywide uniform program as outlined in Administrative Order 3-6. The RFP sought proposals for a two-year contract with four (4) optional one-year extensions. The RFP was publicly advertised on Planet Bids on July 12, 2024, notifying 497 potential proposers, 21 of which downloaded the RFP documents. Only one proposal from Mission Linen Supply was received by the September 3, 2024 deadline. To ensure a fair and thorough evaluation, a selection committee was formed with representatives from the Department of Public Utilities, Fire Department, Police Department, PARCS, and the General Services Department. Proposals were evaluated based on the following criteria: 1) Cost as shown on the Cost Proposal Worksheet. 2) Ability to meet the stated service requirements. 3) Past Performance and Experience based on References and experience. 4) Conformance to the terms and conditions of the RFP. 5) Other related information. Following its review, the committee determined that while Mission Linen Supply met service requirements, the proposed pricing was approximately 79% higher than the City's current contracted rates. When asked to submit a Best and Final Offer (BAFO), Mission Linen Supply confirmed that its original pricing was firm. Administrative Order (AO) 3-6 Uniform Program establishes the cost-sharing requirements for uniforms, including rental fees, laundering, and related expenses. Under this policy, the total program cost is split evenly between the City and the employee, with the employee's share deducted directly from their paycheck. Due to the significant financial impact and lack of competitive proposals, the committee recommended rejecting the sole proposal to consider alternative procurement options. The Purchasing Division will proceed with either reissuing the RFP or pursuing a cooperative purchase agreement to secure the best value for City departments and employees. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all proposals does not qualify as a "project" for the purposes of CEQA requirements. LOCAL PREFERENCE Local preference was considered during the evaluation but is not required in recommending a rejection of all bids. FISCAL IMPACT This request to reject all proposals will have no fiscal impact. Attachments: Bid Evaluation and Committee Report