Title
Maintenance, Repair and Operational Supplies with W.W. Grainger, Inc. (Ordinance S-45093)
Description
Request authorization for the City Manager, or his designee, to increase funding for Cooperative Purchasing Agreement 146460-0 (National Intergovernmental Purchasing Alliance Cooperative Contract 141003) by $4.8 million to continue to provide essential maintenance, repair and operational supplies required by all City of Phoenix departments through Dec. 31, 2020. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
This contract is used to purchase maintenance, repair and operational (MRO) supplies which support the needs of City employees, facilities, and warehouses, as well as the general public. MRO supplies include, but are not limited to: motors, electrical supplies, lighting, hand and power tools, safety equipment and clothing, pumps, material handling equipment, pneumatic equipment, machining/cutting tools, HVAC equipment and supplies, test instruments and a wide variety of goods required for the City to remain operational on a daily basis. This contract is open and used by all City departments.
The City of Phoenix Police Department has recently utilized this agreement (partially funded through the Police Department's Records Management System grant) to replace its entire stock of gas masks and accessories for police officers. This special project reduced the available 2018 funding by approximately $650,000, with the potential for another $650,000 expenditure in early 2019 to complete the $1.3 million project. Additionally, the Aviation, Parks and Recreation and Water departments utilize approximately 50 percent of the total contract spend, and their use of the contract has increased because of tools, supplies and safety equipment that is at end of life. The remaining balance will be utilized by the other large users of this contract, which include Fire, Convention Center, Street Transportation and Public Works to provide operational supplies and equipment to support their departments.
Contract Term
The original term of this contract is Sept. 2, 2015 through Dec. 31, 2017, with three options to extend. As originally approved by City Council, the contract options have been exercised annually and the contract will expire Dec. 31, 2020.
Financial Impact
Initial funding for this contract was originally approved through City Council on Payment Ordinance S-41999 and S-42565-ac, with a total expenditure of $9,165,000. Increasing the contracts value by $4,800,000 will bring the total amount, not to exceed, to $13,965,000.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.