Approve the Blanket Purchase Agreement with the Hon Company #8041-EST (Business Division)

On March 14, 2007, April 5, 2005, and April 4, 2006, the Board approved a one year Blanket Purchase Agreement with the Hon Company to maximize the discounts offered for Hon furniture. For tracking purposes, the agreement has been assigned a bid number, 8041-EST. Knowing the volume of yearly furniture purchases, we contacted Hon again to continue to secure a more favorable percentage discount than offered on the State of Florida contract. Hon Company has offered aggressive discounts under a blanket agreement that stipulates that the District will purchase one million ($1,000,000) dollars (based on list price) over the period of April 1, 2008, to March 31, 2009. The discounts offered, including installation, range from 44.6% to 75.3%. 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 Company may choose to not extend the agreement beyond March 31, 2009. 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 $60,000. Hon is not an OSD supplier.

As stated in OPPAGA report: “Efficient purchasing and warehousing require that management processes be in place to ensure that supplies, equipment, and services vital to the school’s education mission are purchased from a competitive source, in the right quantity, delivered timely to the correct location, and stored in a secure location. These criteria should be met for each purchase without sacrificing quality.”

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.