HCPS FL Logo Business Services
Action Item
DATE: Tuesday, April 04, 2017
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
For years, the district has standardized on 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. 

Knowing the volume of annual furniture purchases, we contacted HON to continue to secure a more favorable percentage discount.  HON has offered aggressive discounts under a blanket agreement that stipulates the district will purchase a minimum of $1,000,000.00 (based on list price) over the period of May 1, 2017, through May 1, 2018. These are the deepest discounts available, ranging from 61.7 percent to 74 percent.  Utilizing the average discount rate of 64 percent, our district will need to spend at least $360,000.00 per year, which we have met each year.  This agreement allows all schools and departments to receive 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 not to extend the agreement beyond May 1, 2018; however, we expect to satisfy the purchasing requirements of the blanket agreement.

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-1.012(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 rules of the Department of Management Services, Division of Purchasing.

STRATEGIC OBJECTIVES
• Establish a strong foundation of financial stewardship
FINANCIAL IMPACT (Budgeted:  Yes)
Annual expenditures are estimated to be $450,000.00.  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 data of the expiring contract.
SUBMITTED BY:  Corey A. Murphy, General Manager, Procurement Services
Gretchen Saunders   Dr. Alberto Vázquez
Chief Business Officer
(813) 272-4270
  Chief of Staff
(813) 272-4986
    C 6.12
Hillsborough County Public Schools (Florida) * Mtg.#20170404_809 (Board Meeting) * Section C Item# 6.12