Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
title
A. MOTION TO APPROVE six open-end contracts to the awarded vendors, subject to execution of the applicable Participating Addendum per Motion B: 1) Fastenal Company; 2) Motion Industries, Inc.; 3) Sid Tool Co., dba MSC Industrial Supply Co.; 4) W.W. Grainger Inc.; 5) WESCO Distribution, Inc.; and 6) White Cap, L.P.; under the Sourcewell Contract No. 091422, for Facility MRO, Industrial, and Building-Related Supplies and Equipment; for all Broward County agencies, in the estimated aggregate amount of $10, 875,000 for the remainder of the initial two-years-and-five-months contract term, from July 1, 2024 through November 8, 2026; and authorize the Director of Purchasing to renew the contracts, as renewed by Sourcewell, for two additional one-year periods in the annual potential estimated amount of $4,500,000, for a potential four-years-and-five-months term ending November 8, 2028, for a total potential estimated amount of $19,875,000.
ACTION: (T-11:38 AM) Approved.
VOTE: 9-0.
B. MOTION TO AUTHORIZE Director of Purchasing to negotiate, approve, and execute Participating Addenda between Broward County and the six vendors awarded to Sourcewell Contract No. 091422: 1) Fastenal Company; 2) Motion Industries, Inc.; 3) Sid Tool Co., dba MSC Industrial Supply Co.; 4) W.W. Grainger Inc.; 5) WESCO Distribution, Inc.; and 6) White Cap, L.P., subject to review of the Participating Addenda by the County Attorney’s Office for legal sufficiency.
ACTION: (T-11:38 AM) Approved.
VOTE: 9-0.
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Why Action is Necessary
MOTION A: In accordance with Broward County Procurement Code Section 21.27, Purchases from Other Government Contracts, the Director of Purchasing may purchase goods or services under any procurement contract held by a governmental agency or nonprofit entity.
MOTION B: In accordance with Broward County Procurement Code Section 21.47(a), Award and Execution Authority, Board approval is required for awards exceeding $500,000, inclusive of the value of any renewals or extensions provided for in the contract. Additionally, in accordance with Broward County Procurement Code Section 21.53(a), Duration of Contracts, a County contract shall not exceed five years in duration without the express approval of the Board.
What Action Accomplishes
Provides for the purchase of facility maintenance, repair and operations (MRO) and industrial supplies and equipment for all Broward County agencies.
Goal Related Icon(s)
☐County Commission
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Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development did not reserve this project for Small Business Enterprises or assign County Business Enterprise participation goals based on the review of products requested (Exhibit 1).
The purpose of this item is to utilize a contract from another government entity; Sourcewell, a State of Minnesota local government unit and service cooperative, Contract No. 091422, for the procurement of facilities maintenance, repairs, operations (MRO) industrial, and building related supplies and equipment for all County agencies, to ensure continuity of operations and flexibility. Sourcewell is a government organization that provides contracts for government, education, nonprofit, tribal government, and other public agencies, to achieve economies of scale through volume discount pricing for its Participating Entities.
Request for Proposal (RFP) No. 091422 was competitively solicited by Sourcewell on July 27, 2022, and opened September 14, 2022, with 20 responses (Exhibit 2). Sourcewell awarded Contract No. 091422 to six vendors: 1) Fastenal Company; 2) Motion Industries, Inc.; 3) Sid Tool Co., dba MSC Industrial Supply Co.; 4) W.W. Grainger Inc.; 5) WESCO Distribution, Inc.; and 6) White Cap, L.P., through November 8, 2026, with an option to extend for two additional one-year periods (Exhibit 3).
The Purchasing Division has determined that Sourcewell Contract No. 091422 will provide cost-effective pricing, and streamlined source of supply to maintain Broward County operations from the six awarded vendors:
- Fastenal Company offers an assortment of facilities maintenance equipment and supplies, including online catalog ordering solutions.
- Motion Industries, Inc. distributes industrial products, replacement parts, related supplies, such as bearings, mechanical and electrical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, safety supplies, and material handling products.
- Sid Tool Co., Inc., dba MSC Industrial Supply Co., distributes industrial and MRO name-brand, exclusive-brand, and generic-brand products.
- W.W. Grainger Inc. offers a comprehensive MRO product line.
- WESCO Distribution, Inc. is a distributor of facility MRO products, industrial supplies, electrical and lighting products, and electric power transmission products.
- White Cap, L.P. is a facility MRO and construction product supplier with an inventory of brand name and proprietary products.
The Purchasing Division has reviewed the awarded vendors’ offered discounts and found them to be fair and reasonable, taking which will allow Broward County to take advantage of lower costs based on large volume discounts and economies of scales, while reducing administrative and shipping costs. (Exhibit 4).
A survey was conducted to determine County-wide usage of the contract to establish an estimated annual amount for all awarded contracts (Exhibit 5).
This item seeks Board approval for the initial two-years-and-five-months term from July 1, 2024 to November 8, 2026, for all awarded vendors on Sourcewell contracts, in the estimated initial term amount of $10,875,000. If Sourcewell exercises the two additional one-year extensions, this item authorizes the Director of Purchasing to renew the contracts in the estimated aggregate annual amount of $4,500,000 for all awarded contracts, for a potential estimated amount of $19,875,000.
The existing Contracts No. BLD3116000020G1 with W.W. Grainger Inc. and Fastenal Company, for facilities maintenance, repairs, operations, industrial, and building-related supplies and equipment, started on July 6, 2020 and November 8, 2023, respectively, and expire on June 30, 2024. Aggregate expenditures to date: $7,670,174.
The amounts referenced in this agenda item were rounded to the nearest whole dollar.
Source of Additional Information
Robert E. Gleason, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
The open-end contract has an estimated amount of $19,875,000 over a potential four-years-and-five-months period. The funds estimated for the current Fiscal Year are included in the current Fiscal Year budget.