Action Item
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Business
Action Item |
| DATE: | Tuesday, May 17, 2011 |
| TO: | School Board Members |
| FROM: | MaryEllen Elia, Superintendent |
| SUBJECT / RECOMMENDATIONS | |
| Accept Cost-Cutting Alternatives Established in Conjunction with Current Piggyback Contract Between Office Depot and the State of Florida Division of Management Services (DMS), Utilizing the Office and Educational Consumables Contract 618-000-11-1 (Business Division) | |
| EXECUTIVE SUMMARY | |
| On January 18, 2011, the Board approved a piggyback agreement between Office Depot and the State of Florida Division of Management Services. At that time, we estimated an annual savings of $246,358; however, in the first four months of the contract Hillsborough County Public Schools (HCPS) has saved $249,272. Because prices are updated quarterly, we anticipate some increases and are requesting the Board take measures to ensure HCPS continues to benefit by cost reductions.
HCPS has activated an electronic ordering feature offered by Office Depot that suggests alternative products during the ordering process. This feature, called "Smart Cart," is triggered when a customer adds an item to their shopping list or cart and a lower cost alternative is available. It identifies the alternative product, provides comparative specifications and dollars saved. Customers make the appropriate choice and their cart is updated. Historically, our employees make the most economic choices. Attached is a sample list of 20 high-volume items. The Procurement Department has ensured there are no significant changes in specifications between products. We recommend forced substitution on these items for an additional annual savings of $86,454. The additional savings have been estimated based on 2010/2011 school year quantities and HCPS current pricing. We request that the Board allow the Procurement Department to continue on this path of making adjustments on a quarterly basis. |
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| STRATEGIC OBJECTIVES | |
| • Align financial resources to support the district’s strategic goals • Demonstrate best financial practices | |
| FINANCIAL IMPACT (Budgeted: Yes) | |
| EVALUATION | |
| 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 |
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| A 5.32 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20110517_459 (Board Meeting) * Section A Item# 5.32 | ||