Title
MOTION TO APPROVE THE PURCHASE OF MAINTENANCE, REPAIR, OPERATING SUPPLIES, INDUSTRIAL SUPPLIES, AND RELATED PRODUCTS AND SERVICES ON AN AS NEEDED BASIS FROM HOME DEPOT USA, INC., UTILIZING OMNIA PARTNERS, PUBLIC SECTOR CONTRACT # 260006-03 FOR AN ESTIMATED ANNUAL AMOUNT OF $650,000, PURSUANT TO SECTION 35.18(C)(6) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18 (C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City of Pembroke Pines seeks to utilize Home Depot USA, Inc., cooperative purchasing contract to procure a wide variety of maintenance, repair, operating (MRO), and facility-related supplies required by City departments and Charter School operations.
2. Home Depot USA, Inc., through its e-procurement platform and in-store sales, has provided the City with access to an extensive inventory of products commonly used in the daily operations and maintenance of City facilities, parks, utilities, public services, and fleet. These products include, but are not limited to, building materials, plumbing supplies, electrical components, paint, hardware, tools, safety equipment, landscaping materials, janitorial supplies, and emergency response items.
3. The City Commission approved the use of the current cooperative contract with Home Depot USA, Inc.at its October 16, 2019 meeting and subsequently approved a renewal at its May 4, 2022 meeting, extending the contract term through December 31, 2026.
4. Maricopa County, Phoenix, Arizona, serving as the Lead Public Agency, competitively solicited and awarded a new cooperative purchasing contract to Home Depot USA, Inc., through OMNIA Partners, Public Sector. The initial five-year contract term commenced on February 11, 2026, and continues through January 31, 2031. The agreement includes renewal options for an anticipated total contract term of ten (10) years, extending through January 31, 2036.
5. City staff desire to utilize this competitively awarded cooperative contract to procure maintenance, repair, operating (MRO), and facility-related supplies required to support the City's daily operations. The contract provides the City with numerous benefits, including access to an extensive inventory of maintenance, repair, operating, and facility-related products, annual volume rebates on the City’s aggregate purchases, potential additional discounts on bulk orders, reduced administrative costs by eliminating the need to conduct a separate competitive solicitation, expedited procurement and delivery of products to support routine maintenance, capital improvement projects, and emergency response activities, and increased purchasing efficiency while maintaining compliance with applicable procurement requirements.
6. The Home Depot USA, Inc., contract offers the following annual volume rebate structure to registered public agencies, which includes the City:
- 1% annual rebate on annual net sales of $10,000 to $25,000
- 2% annual rebate on annual net sales of $25,000 to $100,000
- 5% annual rebate on annual net sales over $100,000
7. Additionally, bulk orders over $2,500 may qualify for additional incentives.
8. Request City Commission to approve the purchase of maintenance, repair, operating supplies, industrial supplies, and related products and services on an as needed basis from Home Depot USA, Inc., utilizing Omnia Partners, Public Sector contract # 260006-03 for an estimated annual amount of $650,000, pursuant to Section 35.18(C)(6) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $650,000 for all City departments and Charter Schools. Purchases will be made on an as-needed basis and are subject to approved budget appropriations. Actual annual expenditures may fluctuate above or below the estimated amount depending on operational requirements, maintenance activities, emergency response needs, and the availability of funding.
b) Amount budgeted for this item in Account No: Each department and charter school has a budget for purchasing maintenance and hardware supplies that is generally coded to object code # 546150 (R&M - Land, Building & Improvement).
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: Estimated annual expenditures of $650,000 per calendar year, with an anticipated annual rebate of 5% based on the current rebate structure. Actual expenditures may fluctuate from year to year and may be higher or lower than the estimated annual amount.
|
|
CY2027 |
CY2028 |
CY2029 |
CY2030 |
CY2031 |
|
Revenue |
$32,500 |
$32,500 |
$32,500 |
$32,500 |
$32,500 |
|
Expenditure |
$650,000 |
$650,000 |
$650,000 |
$650,000 |
$650,000 |
|
Net Expenditure |
$617,500 |
$617,500 |
$617,500 |
$617,500 |
$617,500 |
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.