On April 5, 2005, April 4, 2006, March 14, 2007, April 15, 2008, and March 10, 2009, the Board approved a one-year blanket purchase agreement with HON to maximize the discounts offered for HON furniture. For tracking purposes, the agreement has been assigned a bid number, 10030-EST. Knowing the volume of annual furniture purchases, we contacted HON again to continue to secure a more favorable percentage discount than offered on the Contract GS-27F-0015S, by and between HON and the General Services Administration (GSA), referred to as the "HON GSA Contract".

HON has offered aggressive discounts under a blanket agreement that stipulates the district will purchase $1,000,000 (based on list price) over the period of April 1, 2010 to March 31, 2011. The discounts offered, including installation, range from 58.2% to 74.5%. This agreement allows all schools and departments to receive the higher discount percentages regardless of purchase order amount. In the event the district fails to meet the annual purchase minimum, HON may choose to not extend the agreement beyond March 31, 2013. We expect to satisfy the purchasing requirements of the blanket purchase agreement. Previous estimates show that this agreement could afford the district an annual savings of $600,000. HON is not an OSD supplier.

* Align financial resources to support the district’s strategic goals, * Demonstrate best financial practices

This item is funded in the various school or department budgets in the amount of approximately $500,000. This amount assumes not less than 50% discount off manufacturer’s list price.

Contract administration or evaluation is performed by the Project Manager (end user) and Procurement Officer, who function as a team. Reviews are conducted face to face, typically quarterly, 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.