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Home My WebLink AboutResolutions - 2015.08.13 - 21960MISCELLANEOUS RESOLUTION #15212 August 13, 2015 BY: Finance Committee, Tom Middleton Chairperson IN RE: COMPLIANCE OFFICE/PURCHASING UNIT — TWO-YEAR CONTRACT EXTENSION WITH OFFICEMAX OF NORTH AMERICA, INC. (June 1, 2016 - May 31, 2018) To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Purchasing Unit, in conjunction with eight other Michigan government entities, issued an REP for the procurement and desktop delivery of office supplies in February of 2011; and WHEREAS OfficeMax North America was awarded the contract for the supply and delivery of office supplies until May 31, 2016; and WHEREAS the contract contains cooperative language that allows any government entity in North America to utilize the same pricing matrix and delivery services as Oakland County through the "America Saves" program which has approximately 1,100 participants; and WHEREAS as the result of this contract, the County has earned an average of $230,000 each year from rebates on County office supply purchases, and "America Saves" program administrative fees that are budgeted as County General Fund income; and WHEREAS the merger of Office Depot and OfficeMax North America in November 2013 into Office Depot, Inc. reduced competition in the office supply industry; and WHEREAS in February 2015, Staples and Office Depot, Inc. announced an agreement to merge which would further reduce competition in the office supply industry creating future uncertainty for the long-term continuation of the "America Saves" program; and WHEREAS OfficeMax North America, a division of Office Depot, Inc., has offered to extend the current contract for two years. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves a two-year extension of the current contract for the term 6/1/2016 through 5/31/2018 with OfficeMax North America and authorizes the Compliance Office Purchasing Unit to issue a contract amendment for the two-year extension, BE IT FURTHER RESOLVED that there is no budget amendment necessary for the OfficeMax North America two-year contract extension. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO NICL,, 45,559A (7) 'Fakzat- CONTRACT Contract ID 0000000000000000000003557 Contract Dates 06/01/2011 to 05/31/2016 Buyer Phone Dispatch via Print Page 1 of 2 F.O.B. Terms DEST NET 30 Email Scott Guzzy 248/858-54841 jov.com Description: Contract Maximum Office Supplies - COOP - P 5,333,790.81 Vendor ID 0000005228 Phone: Matthew A Drawbaugh Fax: 800/921-2222 matthewdrawbaugh@officemax.c, L. BROOKS PATTERSON - OAKLAND COUNTY EXECUTIVE e* OAKLAND COUNTY / PURCHASING DIVISION Executive Office Building 41 West 2100 Pontiac Lake Rd. Lower Level Waterford MI 48328-0462 Main Phone 248/858-0511 www.oakgov.com/purchasing/ OfficeMax North America Inc Matthew A Drawbaugh 13301 Stephens Rd Warren MI 48089 Tax Exempt ID: 30 -6004876 Pne # Item Number Item/Description 1 000000000000030943 Office Supplies America Saves Agreement Category Co Item UOM Contract Price 44120000 EA 1.00 2012/08/02 CJB CO 02X The County will assign a new contract number to current contract #003209. By signing this amendment, you are giving confirmation of new tax ID #34-1573735, official name change of "OfficeMax North America, Inc." and new address located at 260 Shuman Blvd,, Naperville, IL., 60553. All terms, conditions, exhibits and amendments incorporated in contract #003209 will now be incorporated into the new contract number #003557. Going forward, all future documentation will show "OfficeMax North America Inc." 2012/08/02 CJB Re-issued Contract 2012/08/23 CJB CO 03 Add the following language to the contract: By Amendment 01 dated February 14,2012 the parties replaced a paragraph on page 19, Exhibit IF with the following paragraph: "Pricing for off-core items appearing in the full line OfficeMax catalog will range in discount from current manufacturers list from 30% to 50% as listed in the following table. The discounts quoted will be honored on every item with the exception of items that fall below a 10% margin floor." The County and Contractor acknowledge and agree that a sentence was omitted from the paragraph. Therefore, the parties agree to add the following sentence at the end of said paragraph effective retroactive to the effective date of Amendment 01 (February 14, 2012): "Note: List price can change at any time. This amendment includes Attachment A , America Saves Core List 3Q Adjustments 7-12 , titled Oakland County Core Items -07-01-2012. This includes items that prices were: increased, decreased, or deleted and replaced. This list is effective 07-01-2012. Oakland County issued RFP-Event # 002200 for system furniture and accessories. OfficeMax responded and was considered. The County has added the response pricing to the America Saves contract as Attachment B, titled OM Workspace Furniture Price List. All brands and lines listed maintain a minimum of a 52% discount from current list price for small quantity purchases. Additional discounts can be negotiated on larger purchases. This attachment also includes hourly rates for design and installation, and includes warehouse storage rates. Entities are to contact their local OfficeMax representative for final pricing discounts and logistics. Special terms applicable to all furniture orders shall be included with each OM Workspace furniture proposal." 2013/04/15 CLA CO 04 Extended the contract expiration date from 05-31-2014 to 05-31-2016. The Contractor shall maintain pricing on all Core office supply items until 12/31/13 as described in Attachment A, Core Pricing Sheet 1-1-13.This excludes core items beginning with the Merchandise Class Prefix's P1, 51 & 55. These are paper, paper related and toner products. These items will be reviewed in July. If a core office supply item cost decreases in the July review; the item price shall decrease also at that time. Normal six month Core Pricing office adjustments shall start again on 1-1-2014. Non-Core or Off Contract pricing effective 1-1-2013 is described in Attachment B — Off Contract Pricing List 1-1-13, Authorized Signature L. BROOKS PATTERSON - OAKLAND COUNTY EXECUTIVE or OAKLAND COUNTY PURCHASING DIVISION Executive Office Building 41 West 2100 Pontiac Lake Rd. Lower Level Waterford Ml 48328-0462 Main Phone 248/858-0511 www.oakgov.corn/purchasing/ OfficeMax North America Inc Matthew A Drawbaugh 13301 Stephens Rd Warren MI 48089 CONTRACT Dispatch via Print Contract ID Page 0000000000000000000003557 2 of 2 Contract Dates F.O.B. Terms 06/01/2011 to 05/31/2016 DEST NET 30 Buyer Phone Email Scott Guzzy 248/858-541 ..14r4oakgov.com Description: Contract Maximum Office Supplies - COOP - P 5,333,790.81 Vendor ID 0000005228 Phone: Matthew A Drawbaugh Fax 800/921-2222 matthewdrawbaugh@officemax.ci Tax Exempt ID: 38-6004E176 Line # Item Number Item/Description Category Co Item UOIVI Contract Price 2013/06/20 CJB CO 05 Add a new price list to the contract: This amendment and Attachment A, titled America Saves- Base Core Items, only includes price decreases, additions, deletions and replacement items to the base core list, effective 07-01-2013 . The remainder of the list stays the same. 2014/02/21 CJB CO 06 The County and the Contractor through negotiations have made the following changes to the contract to for 2014. These changes take effect on 01-01-14, The Amendment includes and incorporates Attachment A titled "2014 1st Quarter Core List" and Attachment B "Core Items Removed for 2014" A. Due to catalog and stocking changes, approximately 30 items will be removed from the Core Items list in Attachment B titled " Core Items Removed for 2014" B. Approximately 96 items on the Core Item list will be increased as agreed upon. C. Copy paper items for this quarter will remain the same. D. Approximately 31 new technology products will be added to the Core Items list. E. Approximately 14 off core items will be added to the Core Items list. F. Approximately 17 alternate products are being added as less expensive alternates. Paper market changes are being addressed in this amendment for 2014. The Contractor may adjust the cost of paper items of America Saves clients who have paper items priced lower than the main core list of pricing. These cost changes will NOT go higher than the main core list pricing for paper. For any America Saves clients who have customer specific core items NOT on the main core list of Oakland County/America Saves, the Contractor may request a change to the price to better align with the actual cost. All requests for these price changes have to be agreed upon by the America Saves client prior to implementation. 2014108/05 CJB CO 07 The County and the Contractor through negotiations have made the following changes to the contract for 2014. These changes take effect on 07-13-14. The Amendment includes and incorporates Attachment A titled "2014 3rd Quarter Core List' and Attachment B "Core Items Removed for 2014, 3rd and 4th quarters. The item P10X9001CTN, 20Ib Copy Paper, will be priced $32.70/CT on October 1, 2014 The pricing for the 5 new furniture skus are for basic dock or just inside main entrance delivery only. No installation or removal from container delivery is included in the price. Please call your America Saves representative for a quote if removal, special delivery, or installation is required. Authorized Signature Resolution #15212 August 13, 2015 Moved by Spisz supported by McGillivray the resolutions (with fiscal notes attached) on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Fleming, Gershenson, Gingell, Gosselin, Hoffman, Jackson, KowaII, Long, Matis, McGillivray, Middleton, Quarles, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bowman, Dwyer (20) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended Consent Agenda were adopted (with accompanying reports being accepted). STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August 13, 2015, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 13 th day of August 2015. Lisa Brown, Oakland County