HCPS FL Logo Business
Action Item
DATE: Tuesday, March 15, 2011
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Blanket Purchase Agreement with The HON Company (HON) Utilizing the State of Florida Division of Management Services (DMS) Furniture: Office and Files Contract 425-001-06-1 (Business Division)
EXECUTIVE SUMMARY
The Board annually approves a one-year blanket purchase agreement with HON to maximize the discounts offered for HON office furniture.  Applicable Florida Department of Education (FLDOE) 6A1.012 and district policy allows purchases from contracts awarded by other government agencies, district school boards, Department of Management Services (DMS), etc., at or below specified prices.  This is the second renewal of the agreement, effective March 2, 2011 through March 1, 2012. 

Knowing the volume of annual furniture purchases, we contacted HON again this year 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 (based on list price) over the period of April 1, 2011 through March 31, 2012.  These are the deepest discounts available, and range from 58.2% to 74.5%.  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 March 31, 2012, although we do expect to satisfy the purchasing requirements of the blanket purchasing agreement.  Previous estimates show that this agreement could afford the district an annual savings of $600,000. 

STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Based on the previous year's net expenditures, we estimate approximately $1,000,000 will be available in the General and Capital funds. 
EVALUATION
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.
SUBMITTED BY:  Corey Murphy, Senior Procurement Officer, Procurement Department
Jean Bowman   Gretchen Saunders
General Manager, Procurement Department
(813) 272-4374
  Chief Business Officer
(813) 272-4270
    A 5.07
Hillsborough County Public Schools (Florida) * Mtg.#20110315_456 (Board Meeting) * Section A Item# 5.07