Title
MOTION TO APPROVE THE PURCHASE OF THREE HUNDRED AND TWO (302) GALVANNEALED STEEL LOCKERS FOR THE ACADEMIC VILLAGE CAMPUS FROM STORAGECRAFT, FOR A TOTAL AMOUNT NOT TO EXCEED $33,960.78 UTILIZING PRICING ESTABLISHED BY THE ST. JOHNS COUNTY SCHOOL DISTRICT BID # 2023-04, PURSUANT TO SECTION 35.18(C)(5) 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)(5) states, “Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States Government, are exempt from the competitive procurement process.”
- 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 $25,000, 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 Academic Village Campus is requesting authorization to purchase 302 Lockers for the girl's locker room utilizing pricing established by St. Johns County School District bid no.: 2023-04.
2. The current Academic Village Campus girls’ lockers have reached the end of their life expectancy. Several lockers are no longer functional or safe.
3. On January 11, 2023, the St. Johns County School District released bid no.: 2023-04 "Lockers", which was awarded to Storagecraft and became effective April 15, 2023, through April 14, 2024.
4. On November 1, 2023, the St. Johns County School District exercised their option to renew the contract for one (1) year period, April 15, 2024, through April 14, 2025 with the same terms and condition.
5. The lockers are manufactured by List Industries, a Florida-based manufacturer and a division of Storagecraft.
6. The Public Services Department researched their options and chose to obtain quotes for lockers made with galvannealed steel.
7. Galvannealed steel, used in the manufacturing of the lockers, has a matte, uniform grey color that can be easily painted, providing excellent protection against corrosion for the underlying base material.
8. Per the contract, we are required to obtain a 58% discount off the MSRP or Manufacturers Total List Price (for the total order). Per the pricing matrix, our material cost prior to the addition of galvannealed steel is $69,627.19, thereby the discount we received is 58%, resulting in our net material cost to be $29,243.41.
Moreover, per the contract, corrosion resistant galvannealed steel components incur a 15% markup to the net material value with a net minimum addition of $1,000. 15% of our net material value ($29,243.41) would be $4,386.51, however, we were offered a better price and quoted a pass-through cost of $2,917.37 (a 9.98% markup) for the galvannealed steel. Bringing the total material cost to $32,160.78.
In addition to material cost, the contract allows for freight cost at market value. The freight cost for this order is $1,800, which brings the Order Total to $33,960.78.
9. Motion to approve the purchase of three hundred and two (302) galvannealed steel lockers for the Academic Village Campus from Storagecraft, for a total amount not to exceed $33,960.78, utilizing pricing established by the St. Johns County School District bid # 2023-04, pursuant to Section 35.18(C)(5) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $33,960.78
b) Amount budgeted for this item in Account No: Funds are available within the AVCS 2023-24 Adopted budget under the R&M Land Bldg. & Improvement account- 172-569-5053-546150-7900-350-0000-
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project Not Applicable.
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? Yes, The Public Services Department will install the lockers.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? $5,522.44 in labor cost is being saved by assembling in house. We are also receiving unknown saving in freight charges because additional freight charges apply for assembled orders.