CC MEETING: June 25, 2024
DATE: June 11, 2024
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Chrystal Davis, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into An Agreement With Amazon Business, LLC Through An Interlocal Cooperative Agreement With Omnia Purchasing Cooperative In An Amount Not To Exceed $303,500 Annually.
Body
BACKGROUND:
The Finance Department - Purchasing & General Services Division recently completed its Managed Competition review where the division was found to be "substantially competitive". However, the review also identified the opportunities to establish more city-wide contracts that would take advantage of economies of scale. In addition to the Managed Competition review, a recent purchasing card spend review reinforced the need to establish citywide contracts to purchase goods and services that affect multiple departments, specifically identifying the use of Amazon Prime.
Amazon Business, LLC through the Omnia Public Sector purchasing cooperative, provides employees access to a curated selection of items on Amazon that can be purchased that meet the day-to-day needs of the City. The convenience that Amazon provides has made it the go-to solution for employees to order and receive goods that range from office supplies and furniture to technology equipment and accessories. A citywide Amazon Business Prime account will consolidate individual accounts to one city-wide managed account, increase the ability to track spend, receive annual rebates, and conduct analysis over the contract term to ensure compliance with City policies, overall enhancing internal controls.
The annual cost of membership is $3,500, and we expect to spend approximately $300,000 annually through various city-wide purchases, for a total requested amount for approval of $303,500.
FINANCIAL IMPLICATIONS:
The Amazon Business membership will be maintained by the Finance Department's budget ...
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