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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Todd Mills, Director of Supply Chain |
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TITLE:
title
Contract: Vendor Managed Shop Supplies (Grainger Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Authorize the use of Grainger State of Utah Contract #MA4601 as a Negotiated Price Discount (NPD) agreement to obtain shop supplies and vendor managed shop supply services for all UTA maintenance and operations locations with an estimated total spend of $6,000,000 over a period of up to five (5) years.
BACKGROUND:
UTA maintenance and operations departments consume a wide variety of shop supplies for daily operations. Items such as safety PPE, greases & lubricants, electrical, tools, janitorial supplies, and other items. UTA also requires vendor managed dispensing systems of shop supplies to nine (9) UTA maintenance locations. Dispensing systems will dispense frequently used industrial supplies and other specialized maintenance, repair, and operations inventory items and equipment at point of use locations throughout UTA’s maintenance and operations facilities. This use of the above-refenced State of Utah contract to obtain these supplies and services at a NPD (Negotiated Price Discount) will commence upon approval and will expire approximately June 30, 2029.
DISCUSSION:
After a thorough review of current contract performance UTA management has made the decision to contract with the incumbent vendor through the existing state contract MA4601. This approach will achieve significant cost savings while ensuring continuity of service. UTA Staff is requesting approval of NPD 24-03863 with Grainger, Inc. with an estimated total spend of $6,000,000 over a period of up to five (5) years. Payments will be made by P-card from each of the 9 UTA maintenance locations and other operations facilities. Annually Supply Chain management will provide a P-card total spend report with Grainger Inc. for the previous 12 months. Last year UTA spent $1,060,933 with Grainger.
CONTRACT SUMMARY:
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Contractor Name: |
Grainger Inc. |
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Contract Number: |
UTA Contract #24-03863, State Contract #MA4601 |
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Base Contract Effective Dates: |
State Contract effective 7/1/2024 - 6/30/2029 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$6,000,000 (estimate only, not an NTE) |
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Procurement Method: |
State of Utah Contract |
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Budget Authority: |
Approved 2024 Operating Budget |
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ALTERNATIVES:
UTA could opt to issue an RFP of its own, instead of using the state contract.
FISCAL IMPACT:
Funds are budgeted into the Operating Expense maintenance “shop supplies” budget. Payments will be made by P-card from each of the 9 UTA maintenance locations and other operations facilities. In previous shop supply contracts this has been found to be the most accurate and efficient payment method for this type of contract.
ATTACHMENTS:
1) Link to State Contract MA4601 <https://statecontracts.utah.gov/Contract/Details/MA4601-Construction-Supplies-and-Equipment%7C4c11c3f5-d523-40a4-95db-700e2cbdd6ed>