HCPS FL Logo Business Services
Action Item
DATE: Tuesday, May 15, 2018
TO: School Board Members
FROM: Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Blanket Purchase Agreement with The HON Company (HON) Utilizing the State of Florida Division of Management Services (DMS) Contract for Furniture: Office and Files #425-001-12-1 (Business Services Division)
EXECUTIVE SUMMARY
The district has standardized HON furniture for a variety of chairs, teacher desks, and office furniture. We are requesting the Board approve a one year blanket purchase agreement with HON to maximize the discounts offered for HON office furniture. This blanket purchase agreement secures more favorable percentage discounts. HON has offered aggressive discounts under a blanket purchase agreement that stipulates the district will purchase a minimum of $1,000,000 (based on list price) over the period of May 1, 2018, through April 30, 2019. These are the deepest discounts available, ranging from 61.7 percent to 74 percent. Utilizing the average discount rate of 64 percent, the district will need to spend at least $360,000 per year, which we have met each year. This agreement allows all schools and departments the higher discount percentages regardless of the purchase order amount. In the event the district fails to meet the annual purchase minimum, HON may choose to extend the agreement beyond April 30, 2019.  If this situation occurs, the district may opt to solicit and contract with alternate manufacturers.

The term of the State of Florida DMS contract for office furniture is from March 2, 2016, through March 1, 2020. Piggyback agreements may be terminated at any time.

In accordance with the Florida Department of Education Purchasing Policy 6A-1.0125(5), as required by Section 1001.42(10)(j), F.S., the district school board shall receive and give consideration to the prices available to it under the rules of the Department of Management Services, Division of Purchasing.
STRATEGIC OBJECTIVES
• Establish a strong foundation of financial stewardship
FINANCIAL IMPACT (Budgeted:  Yes)
Based on prior year spend and upcoming projects, annual expenditures are estimated to be approximately $250,000. Because this product is ordered districtwide, there is not one specific project number assigned for these purchases.
EVALUATION
Contract administration or evaluation is performed by the Project Manager (end user) and Procurement Officer, who function as a team. Reviews are performed annually, or by utilizing an online vendor performance report. Prior to soliciting a new contract, the Contract Administration team must first give consideration to the specifications and supporting date of the expiring contract.
SUBMITTED BY:  Christine Jones, Senior Procurement Officer, Procurement Services
Corey A. Murphy   Gretchen Saunders
General Manager, Procurement Services
813-272-4374
  Chief Business Officer
(813) 272-4270
    C 6.16
Hillsborough County Public Schools (Florida) * Mtg.#20180515_878 (Board Meeting followed by Public Hearing) * Section C Item# 6.16