|DATE:||Tuesday, March 24, 2015|
|TO:||School Board Members|
|FROM:||Jeff Eakins, Acting 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)|
|For years, the district has standardized on HON furniture for a variety of chairs, teachers' 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, 2015, through March 31, 2016. These are the deepest discounts available, ranging from 59.7 percent to 74 percent. Utilizing the average discount rate of 62 percent, our district will need to spend at least $380,000 per year, which we have met every year. 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, 2016; however, we expect to satisfy the purchasing requirements of the blanket agreement.
In accordance with the Florida Department of Education, Purchasing Policy 6A-1.012(5), as required by Section 1001.42(10)(j), F.S., the district school board shall receive and give consideration to the prices available to it under rules of the Department of Management Services, Division of Purchasing.
|• Align financial resources to support the districts strategic goals • Demonstrate best financial practices|
|FINANCIAL IMPACT (Budgeted: Yes)|
|Year-to-date expenditures for 2014/2015 are $393,006 and $487,992 for 2013/2014.|
|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
|Chief Business Officer
|Hillsborough County Public Schools (Florida) * Mtg.#20150324_686 (Board Meeting) * Section A Item# 6.15R|