Title
Industrial, Building, Plumbing, Electrical, and HVAC Supplies and Materials - Requirements Contract (Ordinance S-46753)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Border States Industries, Inc.; Voss Lighting; Electric Supply, Inc.; Rexel USA, Inc.; Lighting Unlimited, Inc.; Ledergy Lighting, LLC, to provide essential maintenance, repair, and operational supplies required by all Citywide departments in an amount not to exceed $7,000,000 over five years, or approximately $1,400,000 annually. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
Adopting the new State of Arizona cooperative contract will allow the City to purchase maintenance, repair, and operational (MRO) supplies, from local small businesses, which support the needs of City employees, facilities, department warehouses, as well as the general public. MRO supplies include, but are not limited to: electrical supplies, including wire and cable for the City's traffic signals and street lights, and communication infrastructure citywide; lighting, motors, pumps, HVAC equipment, test instruments, safety equipment, and a wide variety of goods required for the City to remain operational on a daily basis. The primary departments utilizing the contracts are: Aviation, Fire, Phoenix Convention Center, Public Works, Street Transportation, and Water Services. Approximately 87 percent of the contract spend is used by enterprise funds.
Procurement Information
In accordance with Administrative Regulation 3.10, a participating agreement is required when the City uses a cooperative agreement from another public agency. The contract was awarded through competitive processes consistent with the City's procurement processes, as set forth in the Phoenix City Code, Chapter 43.
The State of Arizona contract covers the purchase of MRO supplies as required by departments citywide. The State of Arizona contract was awarded on Jan. 1, 2020. The use of this cooperative will provide the City with Statewide discounts on these products.
Contract Term
The five-year contract period for these vendors will begin July 1, 2020.
Financial Impact
The aggregate five-year contract value shall not exceed $7,000,000, or approximately $1,400,000 annually. The contract value is based on historical spend. Funds are available in all City of Phoenix departments' budgets.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.