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C7R-Participate In Southeast Florida Governmental Purchasing Co-OperativeCUMMI!:iSION III::M !:iUMMA~Y Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO PARTICIPATE IN THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING CO-OPERATIVE FOR THE PURCHASE OF COMPETITIVELY BID ROUTINE OPERATIONAL REQUIREMENTS, AND WAIVING BY 5/7TH VOTE, THE CITY'S FORMAL COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY. At the commencement of every fiscal year, beginning October 1, the City releases purchase orders for routine operational requirements that support the maintenance and operations of numerous departments and facilities. These routine requirements may include items as detailed on the attached memo. The need for these routine operational requirements is not limited to the City and is typical for almost every municipal government Like the City, many governments typically purchase these items through a quote process based on the need at the time of purchase. However, several years ago, many local governments realized that by aggregating the volume of many agencies, their buying power could be increased. As a result, the Southeast Florida Governmental Purchasing Co-operative (the "Co-op") was formed. The purpose of the Co-op is to work together to aggregate the volume of each agency for those routine items used by all members in an effort to maximum price discounts and operational efficiencies for each agency. The members of the Co-op include: City of Miami, Miami-Dade County, Miami-Dade County Schools, as well as approximately 50 other municipalities and public agencies in the Southeast Florida region. The memo provides further details on the benefits of co-operative purchases. As one example of the aggregated buying power of the Co-op supply agreements, the City has an annual requirement of irrigation repair parts and equipment of approximately $40,000, which is usually purchased on an as needed basis. Conversely, the Co-op has established, through a competitive process, discount pricing for the same items based on an annual volume of its members totaling approximately $700,000. The resulting Co-op supply agreements for these items include discounts as deep as 65% off of manufacturer list price for many of the same items utilized by the City to maintain irrigation systems in City parks. By participating in the Co-op, the City can benefit from the aggregated volume pricing (i.e., buying power) which is much greater than the City's resulting in significant discounted pricing on routine requirements. The benefits of co-operative purchases are widely recognized nationally. The U.S. Conference of Mayors, the National Association of State Procurement Officials and the General Services Administration of the U.S. Government, as well as other national organizations, support co-operative purchases. Through Co-op agreements for routine operational requirements, the City can take advantage of discounted pricing based on the aggregated volume of many governmental agencies across South Florida many times greater than that of the City and maximize operational efficiencies by providing a means for expeditiously acquiring items that support the operations of numerous City departments and facilities. RECOMMENATION It is recommended that the Mayor and City Commission approve a resolution authorizing the City Manager to participate in the Southeast Florida Governmental Purchasing Co-Operative for the purchase of competitively bid routine operational requirements, and waiving by 5/ih vote, the city's formal competitive bidding requirements, find in such waiver to be in the best interest of the cit . Advisory Board Recommendation: Financial Information: Source of Amount Account Funds: 1 NA NA I I 2 OBPI Total Financial Impact Summary: Expenditures are contingent upon approved budgeted funds. City Clerk's Office Legislative Tracking: Alex Denis, Extension 6641 S1 n-Offs: Departme T:\AGENDA\2013 MIAMI BEACH 398 AGENDA ITEM ___;C=--.;..7...:..8-'-=_ DATE /0-/6-12 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISS ON MEMORANDUM TO: FROM: Jimmy L. Morales City Manager DATE: October 16, 2013 SUBJECT: A RESOLUTION OF THE MA RAND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO PARTICIPATE IN THE SOUTHEAST FLORIDA GOVERNMENTAL PURCHASING CO-OPERATIVE FOR THE PURCHASE OF COMPETITIVELY BID ROUTINE OPERATIONAL REQUIREMENTS, AND WAIVING BY 5/7TH VOTE, THE CITY'S FORMAL COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY. ADMINISTRATION RECOMMENDATION Approve the recommendation. KEY INTENDED OUTCOME Maximize Efficient Delivery of Services BACKGROUND At the commencement of every fiscal year, beginning October 1, the City releases purchase orders for routine operational requirements that support the maintenance and operations of numerous departments and facilities. These routine requirements may include items required throughout the fiscal year, such as: • Aggregates, Top Soils and Sand • Red Clay/Sand & Silica Sand, • Automotive Oils, Lubricants & Baseball Infield Greases • Roof Tarps • Barricade and Flasher Rentals • Security & Sports Lighting Systems • Electrical Supplies Maintenance • Fertilizers & Horticultural Chemicals • Sod and Sod Installation • Fire Extinguisher Service • Swimming Pool Chemicals • Irrigation Supplies • Sports Field Dressings • Landscaping & Grounds • Automotive Parts, Supplies and Maintenance OEM Repair Parts, Related Items Small Engine Parts, Supplies & • Water Meter Fittings & Water Line Related Items Accessories • Mulch • Plumbing Parts and Supplies 399 2 I Approval of Resolution to Participate in Southeast Florida Governmental Purchasing Cooperative The need for these routine operational requirements is not limited to the City and is typical for almost every municipal government. Like the City, many governments typically purchase these items through a quote process based on the need at the time of purchase. However, several years ago, many local governments realized that by aggregating the volume of many agencies, their buying power could be increased. As a result, the Southeast Florida Governmental Purchasing Co-operative (the "Co-op") was formed. The purpose of the Co-op is to work together to aggregate the volume of each agency for those routine items used by all members in an effort to maximum price discounts and operational efficiencies for each agency. The members of the Co-op include: City of Aventura City of Miami City of Miami Gardens City of Miami Springs City of North Miami City of North Miami Beach Miami-Dade County Miami-Dade County Schools City of Boca Raton City of Boynton Beach City of Coconut Creek City of Cooper City City of Coral Springs City of Dania Beach City of Deerfield Beach City of Fort Lauderdale City of Greenacres City of Hallandale Beach City of Hollywood City of Lantana City of Lauderdale Lakes City of Lauderhill City of Lighthouse Point City of Margate City of Miramar City of North Lauderdale City of Oakland Park City of Parkland City of Pembroke Park City of Pembroke Pines City of Plantation City of Pompano Beach City of Riviera Beach City of Sunrise City of Tamarac City of Weston City of Wilton Manors Broward College Broward County Broward County School Board Broward Sheriffs Office Children's Services Council, Palm Beach County Palm Beach County SFRT A!TRI-RAIL South Central Regional Wastewater Facility Town of Davie Town of Lauderdale-By- The-Sea Town of Palm Beach Village of Palm Springs Village of Wellington As one example of the aggregated buying power of the Co-op supply agreements, the City has an annual requirement of irrigation repair parts and equipment of approximately $40,000, which is usually purchased on an as needed basis. Conversely, the Co-op has established, through a competitive process, discount pricing for the same items based on an annual volume of its members totaling approximately $700,000. The resulting Co- op supply agreements for these items include discounts as deep as 65% off of manufacturer list price for many of the same items utilized by the City to maintain irrigation systems in City parks. By participating in the Co-op, the City can benefit from the aggregated volume pricing (i.e., buying power) which is much greater than the City's resulting in significant discounted pricing on routine requirements. CONCLUSION The benefits of co-operative purchases are widely recognized nationally. The U.S. Conference of Mayors, the National Association of State Procurement Officials and the General Services Administration of the U.S. Government, as well as other national organizations, support co-operative purchases. Through Co-op agreements for routine operational requirements, the City can take advantage of discounted pricing based on the aggregated volume of many governmental agencies across South Florida many times greater than that of the City and maximize operational efficiencies by providing a 400 3 I Approval of Resolution to Participate in Southeast Florida Governmental Purchasing Cooperative means for expeditiously acquiring items that support the operations of numerous City departments and facilities. RECOMMENATION It is recommended that the Mayor and City Commission approve a resolution authorizing the City Manager to participate in the Southeast Florida Governmental Purchasing Co-Operative for the purchase of competitively bid routine operational requirements, and waiving by snth vote, the city's formal competitive bidding requirements, finding such waiver to be in the best interest of the city. JLM: KGB: AD 401 Southeast Florida Governmental Purchasing Cooperative of the Southeast Florida Chapter of the National Institute for Governmental Procurement The Southeast Florida Governmental Purchasing Co-operative Group is comprised of government entities from throughout the region to provide cost savings and cost avoidances to member entities by utilizing the buying power of combined requirements for common basic items. Membership in the Co-op is open to governmental agencies in Miami-Dade, Broward and Palm Beach counties. If your entity is not currently a member, we invite you to join us. Contact us at coop@nigpsefl.org for more information. The Co-op meeting schedule is published in the Meetings area of the SEFL NIGP web site. Each participating governmental entity is responsible for utilizing the available contract(s), issuing their own purchase orders, and for order placement(s). Each participating entity will require separate billings, be responsible for payment to the contractor(s) and issue its own tax exemption certificates. The contract/purchase order terms of each entity will prevail for the individual participating entity. Invoicing instructions, delivery locations and insurance requirements will be in accordance with the respective agency requirements. Municipalities and other governmental entities which are not members of the Southeast Florida Governmental Purchasing Co-operative Group are strictly prohibited from utilizing any contract or purchase order resulting from these awards. However, any new or active Southeast Florida Governmental Purchasing Co-operative Group member entity may participate in these contracts for new usage during the contract term( s) if approved by the lead agency. All questions concerning procurements should be addressed to the originating agency. 2012 Co-operative Group Officers: Chair /ve/sa Guzman City of North Lauderdale (954) 722-0900 iguzman@nlauderdale. org Vice-Chair David Santucci City of Deerfield Beach (954) 480-4380 dsantucci@deerfield-beach.com 402 Co-Secretary (Correspondence) lndra Sarju City of AVentura (305) 466-8925 sarjui@citvofaventura.com RESOLUTION TO BE SUBMITTED 403