FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT:
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COOPERATIVE PROCUREMENT WITH W.W. GRAINGER
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve a Blanket Purchase Order with W.W. Grainger, Inc. for the purchase of maintenance tools and supplies, in accordance with Ordinance No. OCSD-52, Section 2.03(B): Cooperative Procurement; for the period beginning March 1, 2020 through February 28, 2021, with two one-year renewal options, for a total amount not to exceed $275,000 per year.
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BACKGROUND
In order to properly maintain and repair Orange County Sanitation District (Sanitation District) facilities, the Operations and Maintenance Department requires miscellaneous parts and supplies which may be one-time purchases, or purchased infrequently such that it is not appropriate to stock them in the Sanitation District's warehouse.
RELEVANT STANDARDS
* Participate in local, state, and national cooperative purchasing programs
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
The current Blanket Purchase Order with W.W. Grainger, Inc. (Grainger) expires February 29, 2020. Without this agreement in place, procurement of parts and supplies necessary for day-to-day repairs could be delayed and could result in higher individual procurement costs.
PROPOSED SOLUTION
Approve a Blanket Purchase Order with Grainger thereby allowing quick procurement and stable pricing of necessary small tools and equipment for day to day repairs.
TIMING CONCERNS
The current Blanket Purchase Order contract for Grainger expires on February 29, 2020. Approval of a new contract with Grainger, proposed to start on March 1, 2020, will alleviate the burden on Purchasing and Maintenance to individually procure miscellaneous parts and supplies.
RAMIFICATIONS OF NOT TAKING ACTION
Increas...
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