Broward County Commission Regular Meeting


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AI-26146 26.       
Meeting Date: 02/27/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Purchasing

Information
Requested Action

MOTION TO AWARD open-end contract to Home Depot, U.S.A., Inc. under the U.S. Communities Contract No. 16154-RFP, Maintenance, Repair, Operating Supplies (MRO), Industrial Supplies, and Related Products and Services; Broward County Procurement Contract No. BLD2115682G1, for the purchase of MRO supplies for the Parks and Recreation Division, in the estimated amount of $1,841,424 for the remainder of the initial term effective through December 31, 2021, with the option to renew for an additional five one-year renewals. The contract shall begin on the date of award and terminate on December 31, 2021.

ACTION:  (T-10:50 AM)  Approved.
 
VOTE: 7-0.  Commissioner Holness appeared telephonically and voted in the affirmative.  Commissioners Geller and LaMarca appeared telephonically but were inaudible during the vote.

Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.36, the Director of Purchasing may purchase directly from federal, state or local contracts.

In accordance with the Broward County Procurement Code, Section 21.31.a.4, the Board is required to approve all purchases exceeding $250,000 per annum or $400,000 in a multi-year period.
What Action Accomplishes
Provides maintenance, repair, operating, and industrial supplies for renovation projects and emergency repairs as needed for the Parks and Recreation Division.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE PARKS AND RECREATION DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.

The Office of Economic and Small Business Development (OESBD) did not reserve this project for Small Business Enterprises under the Sheltered Market Program, or assign County Business Enterprise participation goals based upon the review of the scope of work submitted to the OESBD by the Parks and Recreation Division (Exhibit 2).

The purpose of this contract is to provide maintenance, repair, operating and industrial supplies for approximately 20 renovation projects planned by the Parks and Recreation Division through fiscal year 2022 (Exhibit 1). The project list is subject to change depending on the needs of the Parks and Recreation Division. In addition to the planned projects, this contract will also be utilized for needed materials for unanticipated emergency repairs as required throughout park locations maintained and operated by Broward County.  The contract provides a complete offering of retail MRO supplies, such as building materials, hardware, HVAC, kitchen and bath cabinets, janitorial supplies, landscaping equipment and supplies, motors, pumps, paints and coatings, plumbing, pool supplies, hand-held general purpose tools, power tools, flooring, window coverings, and other miscellaneous MRO supplies.  The contract is for materials only; certified County personnel in the Parks Maintenance Group will complete all renovations and repairs. 

On January 11, 2017, the lead agency for the U.S. Communities cooperative purchasing program, Maricopa County, located in Phoenix, Arizona, awarded U.S. Communities Contract No. 16154-RFP, Maintenance, Repair, Operating Supplies, Industrial Supplies, and Related Products and Services to Home Depot U.S.A., Inc. The U.S. Communities Contract No. 16154-RFP was awarded through a competitively bid process. The basis of the Request for Proposals (RFP) award was to the responsible, responsive proposers meeting the criteria outlined in the RFP, in addition to offering the overall best value. The initial five-year contract term began on February 1, 2017 and expires on December 31, 2021, with the option to renew for an additional five one-year renewals.

The U.S. Communities is a cooperative purchasing program, providing government procurement resources and solutions to local and state government agencies, school districts (K-12), higher education institutions, and nonprofits looking for the best overall supplier government pricing by providing cooperative purchasing in which quantities for the same item are combined in order to achieve economies of scale through volume discount pricing. 

There are no performance evaluations for Home Depot U.S.A., Inc.

The Parks and Recreation Division previously utilized U.S. Communities Contract No. 11016-RFP (Procurement Contract No. L1224010G1) for similar renovation projects for fiscal years 2014 – 2016 (approved by the Board on May 13, 2014, Item No. 27). Procurement Contract No. L1224010G1 expired on July 31, 2017. As a result of utilizing U.S. Communities Contract No. 11016-RFP, Broward County received a rebate of $14,934 (3% of total expenditures) for calendar year 2016 and is expected to receive an additional rebate for calendar year 2017 in the amount of 5% of the total expenditures made over $100,000. 

Using U.S. Communities Contract No. 16154-RFP, Broward County will benefit from receiving rebates through the Rebate Program implemented through this contract.  The amount of the rebate that Broward County receives is based upon annual net purchases; $10,000 to $25,000 = 1%; $25,000 to $100,000 = 2%; and over $100,000 = 5%.  The estimated expenditures are $1,841,424 for fiscal years 2018 - 2022; therefore, the estimated rebate for Broward County over the three-year and ten-month contract term is approximately $92,000 (5% of total expenditures).
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070

Fiscal Impact
Fiscal Impact/Cost Summary:
Each procurement processed against this open-end contract will be funded by the appropriate source at the time of release.

Requisition No. PRA0002080
Attachments
Exhibit 1 - Parks and Recreation Division estimated Project List FY18-FY22
Exhibit 2 - Goal Memorandum dated October 27, 2017


    

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