Business Services Action Item

DATE:	Tuesday, May 7, 2019
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 Contract for Furniture: Office and Files #425-001-12-1 (Business Services Division)
EXECUTIVE SUMMARY
The district has standardized on HON furniture for a variety of chairs, teacher desks, and office furniture. This blanket purchase agreement with HON maximizes the discounts offered for HON office furniture. HON has offered aggressive discounts under this 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, 2019, through April 30, 2020. 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 districts fails to meet the annual purchase minimum, HON may choose not to extend the agreement beyond April 30, 2020. If this situation occurs, the district may opt to solicit and contract with alternate manufacturers.
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 $360,000. Because this product is ordered districtwide, there is not one specific project number assigned for these purchases.
EVALUATION
Contract administration and evaluation is performed by the Project Manager (the "End User") and the Procurement Officer, who function as a team, by utilizing an online vendor performance report or via in-person reviews. The evaluation consists of an assessment of the vendor-provided goods and services, deliverables, and compliance with contractual requirements. The resulting data will support renewal decisions and/or alterations to a new agreement.
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
		B 6.29
Hillsborough County Public Schools (Florida) * Mtg.#20190507_923 (Board Meeting followed by Public Hearing) * Section B Item# 6.29