Subject:
Title
Increase to the purchase authorization with Amazon.com Services LLC for online Marketplace services.
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Recommended Action:
Recommended Action
Approve the increase to the purchase authorization with Amazon.com Services LLC (Amazon) for online Marketplace services.
• This purchase authorization provides oversight and control of the procurement of a wide range of commodities including but not limited to; education, IT, maintenance, repair and operating items, and office supplies utilizing Amazon’s online Marketplace services. Pricing, terms, and conditions are per OMNIA Public Sector Contract MA3457 through 5/5/2025
• This request increases the purchase authorization $966,998.00 to provide funding through the end of the OMNIA contract term. The increase results in an estimated average annual expenditure of $481,749.50 and total not to exceed expenditure of $1,926,998.00 through May 5, 2025.
• This increase includes an annual Amazon Prime for Business membership in the amount of $3,499.00 per year allowing the County to control spending with policy that guide staff to the right buying choices.
• The County originally received a free one-year trial of Amazon Prime for Business on August 2, 2022. During this trial period, the County has achieved the following savings:
a.) Shipping savings - $ 6,123.49
b.) Quantity Discount/Business Price savings - $14,593.93
• Amazon Prime membership provides the County the ability to track small and diverse business spending. Over the past 12 months, the County has spent $131,462.96 with registered small and diverse businesses.
• As part of the membership, the Purchasing and Risk Division is migrating all valid County ship-to addresses in Amazon.com so only established County locations can be selected via a dropdown menu and the end-user cannot add new ship-to locations, creating greater control and enhanced auditing function.
• On February 19, 2021, the County Administrator approved this purchase authorization in the amount of $240,000.00 for a twelve-month term. Current purchases have exceeded the County Administrator’s delegated authority and this requested increase is presented for Board of County Commission consideration.
• This purchase authorization is not specifically budgeted for in Fiscal Year (FY) 2023 or FY24, instead the items to be purchased should be budgeted for in the operating budgets of requesting departments
Contract No. 21-0238-PB increase to the purchase authorization in the amount of $966,998.00, for a revised not to exceed amount of $1,926,998.00 or an estimated annual expenditure of $481,749.50, effective through May 5, 2025.
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Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
5.3 Ensure effective and efficient delivery of county services and support
Summary:
Summary
This purchase authorization provides a centralized platform capable of oversight and control of the procurement of a variety of commodities including education, IT, maintenance, repair and operating items, and office supplies using Amazon’s Online Marketplace services with dynamic pricing.
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Background Information:
Pricing, terms and conditions are per the OMNIA Contract No. MA3457 through May 5, 2025.
On February 19, 2021, the County Administrator approved this purchase authorization in the amount of $240,000.00 for a twelve-month period. On November 29, 2021, the County Administrator approved an extension to the purchase authorization to May 5, 2025, and an increase of $720,000.00
Fiscal Impact:
Current purchase authorization: $ 960,000.00
Increase: $ 966,998.00
Total not-to-exceed: $1,926,998.00
This purchase authorization is not specifically budgeted for in FY23 or FY24, instead the items to be purchased should be budgeted for in the operating budgets of requesting departments. Multiple funds, centers, accounts, and programs may be used and whether funding is available will need to be made on a department-by-department basis before purchase.
Staff Member Responsible:
Merry Celeste, Division Director, Purchasing and Risk Division, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
N/A