HCPS FL Logo Business
Action Item
DATE: Tuesday, March 19, 2013
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 #425-001-12-1 (Business Division)
EXECUTIVE SUMMARY
For years the district has standardized on HON furniture for a variety of chairs, teacher's desks, and office furniture.  We are requesting the Board approve a one-year blanket purchase agreement with HON to maximize the discounts offered for HON office furniture. 

Knowing the volume of annual furniture purchases, we contacted HON 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, 2013 through March 31, 2014.  These are the deepest discounts available, and range from 58.2 percent to 74.5 percent.  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, 2014, although we do expect to satisfy the purchasing requirements of the blanket agreement.

Applicable Florida Department of Education (FLDOE) rule 6A-1.012 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.

STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Expenditures were $949,151 for fiscal year 2011-2012, and are $431,897 year-to-date.  Based on this year's net expenditures, we estimate approximately $720,000 will be available in various departments' General Fund budgets.  Estimates show that this agreement could afford the district an annual savings of $432,000 off manufacturer list pricing.
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:  Kenneth Gerhart, Senior Procurement Officer, Procurement Department
Jean Bowman   Gretchen Saunders
General Manager, Procurement Department
(813) 272-4374
  Chief Business Officer
(813) 272-4270
    A 5.10
Hillsborough County Public Schools (Florida) * Mtg.#20130319_557 (Board Meeting) * Section A Item# 5.10