Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Records, Taxes, and Treasury
Information
Requested Action
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MOTION TO APPROVE threshold increase for open-end Contract No. OPN2122785B2_2, Tax Related Printing and Mailing Services, with Postal Center International, Inc, for pass-thru postage included in the contract for the printing and mailing of property tax bills and other tax-related items, for various Broward County agencies, in the estimated amount of $400,000 for the current contract period ending October 15, 2024, and $400,000 for the contract period ending October 15, 2025, for a total increase of $800,000.
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Why Action is Necessary
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.
What Action Accomplishes
Provides sufficient pass-thru postage threshold available on the contract to accommodate the mailing needs of County agencies, including the Records, Taxes and Treasury Division (RTT), for property tax bill and vehicle and vessel registration renewals, and the Accounting Division, for annual W-2 and 1099 forms, among others.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE RECORDS, TAXES, AND TREASURY DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
The purpose of this threshold increase is to provide sufficient pass-thru postage for tax-related mailings conducted by County agencies.
On July 7, 2021, the Purchasing Division advertised Bid OPN2122785B1, Tax Related Printing and Mailing Services. On October 17, 2021, a Low Bid procurement was awarded to Arrowmail Presort Company, Inc. d/b/a Arrowmail Print and Mail Services, in the annual amount of $519,604, including $450,000 per renewal year for pass-thru postage, for a five-year potential amount of $2,598,023.
On January 5, 2022, the contract was assigned to Postal Center International, Inc. (PCI), due to its acquisition of Arrowmail Presort Company.
Most of the pass-thru postage used on the contract is incurred by the Record, Taxes, and Treasury Division (RTT) for daily outgoing mail related to vehicle and vessel registration renewals processed in RTT’s Plantation Auto Tag facility. In addition, foreign mail which cannot be assigned postage using a postal permit is metered by the mailing vendor and charged back as pass-thru postage.
Since 2021, expenditures under this contract have predominantly been affected by multiple increases in United States Postal Service costs and higher volume of online renewals. Postage costs have increased by a total of 10 cents, equating to approximately 17%. Online renewal transactions which required more mailings also increased by 17%. The increase in postage costs coupled with the increase in online renewal transactions has contributed to a faster reduction in the yearly threshold amount.
RTT paid PCI invoices of approximately $692,000 in Fiscal Year 2022 and approximately $791,000 in Fiscal Year 2023. The current fiscal year expenditures are approximately $558,000.
Source of Additional Information
Thomas Kennedy, Director | Records, Taxes, and Treasury Division, (954) 357-5777
Fiscal Impact
Fiscal Impact/Cost Summary
The open-end contract increase has a not-to-exceed amount of $800,000 over an estimated year-and-a-half period. The funds estimated for the current fiscal year are included in the current fiscal year budget, which is refunded as a pass-thru from taxpayers upon renewal and/or payment of the taxes owed.