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Agenda 10/12/2010 Item #16E 2 lL:;;il r o. 1 t)~2 ,]:tc~'er 2, 2,~)iO Pc\ (; 1 of 5 EXECUTIVE SUMMARY Recommendation to reject award for Invitation to Bid (ITB) 10.5511 for Hardware and Related Items and authorize staff to purchase hardware through more efficient and effective means. OBJECTIVE: To maximize staff resources required for these purchases in a more efficient and effective man ner. CONSIDERATIONS: The County Manager's Agency continuously examines its processes to reduce cost and increase efficiency in meeting the needs of the community. On occasion, what has been established as an approach to reduce expense has actually resulted in additional staff time that reduces or exceeds perceived savings. One such situation is the County's approach for purchasing hardware related items. Specifically, departments purchase hardware related items using County contracts with negotiated discounts of 10% off retail prices (former contracts that expired on 9/11/10 were held by Grainger, Ft. Myers and Sunshine Ace Hardware, Naples). In order to comply with the contract, staff often drives past non- contract hardware stores to purchase from contract vendors. This results in lost productive time and the additional cost of gas, maintenance, etc. incurred by County vehicles. Hardware related items such as these (ranging from fasteners to misc. repair supplies, building materials and small tools) are typically purchased by a number of field personnel throughout the agency. As such, there are times in which the discount is not properly applied at the time of purchase. When this occurs, fiscal staff processing payments must perform additional "back-end process re-work" to correct the transaction for timely payment and accurate record keeping. On average, staff spends approximately two (2) hours to rework a transaction (salclry and benefit burden: $70 per transaction). Annually, the cost of rework is estimated at a minimum of $35,000 (calculated as 15% of annual purchases or 500 transactions). In short, there are many opportunities under the current process for failure, confusion and delay. In May 2010, the Purchasing Department met with a number of hardware suppliers to determine a more effective method to reduce 'back-end process re-work." After much discussion, the Purchasing Department issued ITB 10-5511 for Hardware and Related Items, which eliminated the discount per hardware category, and instead identified a 'rebate" returned to the County on a quarterly basis. Notices were sent to 285 vendor email addresses; 68 suppliers requested the ITB packages. Two (2) "no-bids" and two (2) bids were submitted. Subsequent to the ITB opening, Purchasing staff declared both vendors' bids (Sunshine Ace Hardware and Barnes Distribution) as non-responsive; Barnes Distribution would not agree to the County's tel'ms and conditions, and Sunshine Ace Hardware did not provide the required documentation. As a result, the Purchasing Department conducted an analysis comparing prices aiTIong local retailers and suppliers. The findings conclude that the pricing from large retailers is generally the same or lower than the discounted pricing from previous contract suppliers. Additionally, a recent survey of peer counties (Charlotie, Lee, Sarasota and St. Lucie) determined that they do not issue central contracts for hardware purchases. Charlotte, Sarasota, and St. Lucie Counties permit staff to purchase these items without quotes or contracts up to their minimum purchasing thresholds ($3,000 - $5,000) per individual purchase. Lee County opts to utilize the state contract provider (Grainger, which has no outlets in Collisr County) and the US Communities cooperative purchasing agreement. a !t:':;tT, ""', ""<:~:I ~.~ :..: cC. J :' )[ In an effort to continue to increase efficiency, reduce lost productivity time, and provide flexible purchasing tools for low dollar hardware purchases, staff is proposing a change to its approach toward these purchases. The Purchasing staff recommends that the Board: 1. Rejects the bids received. 2. Allows the purchase of department-specific hardware and related supply transactions, including, but not limited to fasteners, hand tools, power tools, keys, locks, hinges, chains, plumbing and electrical supplies, cleaning products, housewares, tools, utensils, paint, and lawn and garden products, and other related items directly to the County from any local hardware store (e.g. Ace Hardware, B & L Hardware (Immokalee), Home Depot, Jack & Ann's (Immokalee), Lowe's and Sears) according to the Board's purchasing policy for each individual purchase (Section III Purchases Not Exceeding $3,000). Individual purchases that exceed $3,000 (which would be rare) wouid be competiiively let in accordance with the purchasing policy. It should be noted that the value of the average hardware purchase over the last three years is approximately $600. 3. Allows departments to use either the County's purchasing card or purchase orders for these purchases, thus increasing administrative efficiency, reducing process re-work, and increasing the County's rebate dollars returned to the General fund. Purchasing staff estimates that the recommended approach will reduce agency staff time by at least 850 hours annually, which is conservatively estimated to be worth at least $35,000 annually. The use of the p-cards for the majority of these transactions has the potential to return to the organization approximately $4,400 in additional revenue annually. FiSCAL iMPACT: Departments have budgeted for hardware and related supplies in their 2011 budgets; there is no new budget impact. GROWTH MANAGEr"'ENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient for Board action-SRT. R!::COMMENDATIONS: That the Board 1.) rejects ITB 10-5511 for Hardware and Related Items, and 2.) allows departments to purchase hardware and related supplies, including, but not limited to hardware, tools, building supplies, and other related items available through any hardware stores (e.g. Ace Hardware, Home Depot, Lowe's and Sears) according to the Board's purchasing policy and with the use of either a County purchasing card or purchase order. PREPAR!::D BY: Joanne Markiewicz, Acquisitions Manager Item Number: Item Summary: Meeting Date: ;~;;enda It.;;rn NO.1 SE2 Octcber 12. 2010 Pa,;]s 3 of 5 COLLIER COUNTY BOAR:> OF :OUI-.iTY COrii'!M:SSIOI'~::RS 1GE2 Recommendation to ;ejec~ award for lnvitattoll to Bid (ITB) 105511 for Hardware and Pelated Items and authorize staff to pur:hase hardware throu.;th more efficient 8nd effective means. 1 O/i 2/201 0 900:00 AIv1 Prepared By Joanne rv,arkiewi:z Administrative Services Division f;.~anager - PurchasinG l,cquis:tion ~ate Purchasing 6. General Services 8/11i~01C 2:5C:i8 PI'iIl Approved By Skip 83mp. C.F.M. tdministrative Scrvt::es ;:'i\"!S:i~n :)irector - F.s::iiities fJianat:emcnt Date F c::.ilities fJ;2nagernent 8!2C/20'iG 2:L!S; PM A rrroved Ry St9\'e ::arnell J-,::hnrn'S::T:!iv(:; Se:'vices D'\'i~i(l!1 Director - P:l"'ch2,:"m;;!:':;s-n0:-a: :>2,' :c.!O's :";aw Pur~ni:3sir:r; :. .3,,'~'c:-a: SC~V:C0S 8/::;0i~C'::O ::~'S: ;:1rl~ Arrroved Ry .. . ~c:r. ..:,U:;;S'. :. :':::i;: ;:',:;r;;:1":5:,'2': "S Scr\ :;;~s :'1\' Ii' I~r!) h~;~);; ::S:~;';i::;r - ;':_:.;F,i~' ::'.,z;:il', c" "_,'.;s :,;3,C i,d0:i~:f,t'.:: "{, :"'2"\ :~." " 'IS,Vin C'.:,,-,cr>r,', Approved By S:>:~7: R. "7>,.;',:. i :t;;~n~~v r~'Ep;::j :r\_,' M;. ''T,~V ",e:;'" i:".: -"',_~1: ;'2C/::C'~ ::00 ::-;~,1 Aprroved By ;'::C ::: :>:>lV,:\' h'1;;;-;:;;ns(c :.;f r,,,, '>:::, :!"fi:::c ::f ;'/"'3 ,~\,:;:,: t '!:: ~J~t S'3(<;0~( '~.'::- ~jl: Approyed By ,"(!':"S:;';:,,-in:ey ,,~"" .." V,a;,af'e :':,,'n, G C-~~: :f;'2t i",Si<2C1::". . -, \~;~:-; :> ."" .... f ,.'-' C"fii:::f. ;J' 1:;',2: ,;,-,,,r~''''n~ [, _ ij~'0t 9'3:,:::::-',[ :.:::;z: ?i\'j Approved By ~SG E.J::C,E. Jr. _c,~:r;t). h,',::nagers:Jff::9 c::~1'1:; [,':0'.:,2["",1' J~':S ,-,Dun,; ~/Z:-',2;:'ers 0':f:~:!?: :E,(j?,flt ,'c,'-""" ., ~- ,',' ,~ Project Manager: Dennis Linguidi Collier County 10'5511 Hardware and Related Items Revised Tab Sheet )<c:.::'r 'I:.: :'~'~"T1 f\J'l 'i (:: t:::') - Notlf!C2.t1ons.S;mLLB"S "j~,,)lJ~1 ,,,-_.:...v 10 Solicitations Dqvln~,-~q~~;:6~ 'Bidders: 2 No Bidders: 2 Sunshine Ace Barnes Distribution Item Description Quantity Hardware Cleveland, Ohio Naples, FL Aoplied Sinale Rebate Non-responsive r~on -responsive 1 3/8 x 4 foot x 8 foot rated plywood sheathing 1 NOIl-I-esponsive Non-resPOllSi\Ie 2 Arrow heavy-duty staple tacker gun or equivalent 1 r~on-resPOllsive NOli-responsive 3 Arrow Fastener 3/8 In, Powershot Heavy Duty Staples or equivalent 1 hJun-r'cspolIsi'.;e Non-responsive 4 Rubbermaid 32-GaJJon Brute Trash Can w/Ud or equivalent 1 r'Jon - r-cspon:,ivC' Non-re:;vJnsive 5 Bounty 6-Pack 147-Count Mega Roll Select A Size Paper Towels 1 Non-responsive Non-responsive 6 Sellars 200-Pack Paper Towels or equivalent 1 Non-respon"ive Non-responsive 7 The Hillman Group Wet Floor "A" Frame Sign or equivalent 1 N ~_~ , r-C:,DOIl:,iVC ',I~", ",' _," ".~, ,,," ""'''''\C,_H-'L',L''VL 8 UltrasacC 42 Gal Extra Heavy Duty Contractor 8ags, 50 Ct. or equivaoent 1 Non rc',pOIl:,lve Non-,rC'SDOIY,ive 9 Porter-Cable 7-1/4" 15-Amp Laser-Guided Circular Saw I or eqUivalent 1 i'Jorl-rc';rol1sivc Non'r0spon~ive 10 Makita Reclpro Saw Variable Speed or eqUivalent I 1 NOIHC~,pollsive NDn- r(,,;ponsive 11121n, x4ln. x 12 Ft Kiln Dried Dimensional Lumber ! 1 h!url-reS;Jonsive [\lon-re:;oollsive 12iTrubord 7/16 In, x 4 Ft. x 8 Ft. OS8 Sheathing 1 i,Ln',-) ~~ POlL~lve r~OIH f~spon.sive 13 Toggler, pack of 50, 3/8 tn Dla.Flushmount A10 Solid Wall Anchor 1 I-Jon-r' srOllsrve NOllr-C,;80n~,ive 14 #8 x 1-3/4 in. Wood Screw, Flat Head, llnc (Pk of 100) I 1 f',lon.r-osPUll',ive hlc'II-:j'SPCln',ivc 151#14 x 2-1/2 In Wood Screw, Flat Head, ZinC (Pk of 25) I 1 i 1\!uI1-u'slJollsive ['Jon.r-c" DClilSivE' 161#12 x 1-1/4 In. Wood Screw, Flat Head. Zinc (Pk of 50) I 1] rhll i I I " ' :lurL-i\'(-' hli1n-"7c:-;;Y'lbIV(' 1711-Lb Box of 266 1-1/4 In. Dryvvall Screw Coarse Grip-rite ! iF astener 1 I, ,i ( ~ ; I _ , ::'c,:"O:biVC !\i;Jil-r'c:';pon"i\'C' 18 #6 x 1/2 in_ Wood Screw, Fiat Head, Brass (pk of 1 DO) 1 1 1 !'Jcn-r( 5,,::-'1-',,1'.,'0 i\JC1I1IT~t)Dr;',ivl' 19 Werner 24 Ft. Aluminum ExtenSion Ladder With Built In I Leveling System, Type II 225 Lbs Lead CaiJ3c:ty or , ieauivalent i 1 :'I~T' crn:\"\'(, IJmi-' [SOUl" ... 20IV\.rerneI8 FL Fiberglass Stepladder TY;:>8 lA, 300 Lbs I , Load Capacity or eqUivalent 1 "ril-I :-;: ~iJ:)11 '1'.If~ ,,'011 ,-,,' ,;)0'1':-.1\":: I 21 Werner 6 Ft Fiberglass Stepladder TYPE-: LA 3UU :....bs. I 11 Load Capacity or equivalent I , " I':"''', I,: r~ ) I, '(c ,:1;\, ,,[,./(, 22! Clorox Clorox@ Commercial Solullons~.p,: G8rrillCldai I ~ I ""CI i Bleach 96 Oz. or eqUivalent 'I :~ ""'. ',,'c' 1 'oJl-re:" :_'0() 1-: " I 'c-' ~-, 231Custom Building Products VersaBond Fortified Thin-Set r",~uf(al- White 50 Lb_ or 80ulvalent 1 " ,): I - I ~- ':'!-I',\" '.. ""','I'e' I ,,'-, I 241Custom BUilding Products AcrylPro Ceramic He , i i iAclnesrve 3,5 Gallon or eqUivalent 1 1\]Yl- ,'-',;'; 'j' 1\-'[: h!':,1;-1(",;)')" ,I'_"~ 25 Kidde Recreational 1 A-1 OB:C Extinguisher or eqUivalent I , I l' \',:-,1'1 - ,i}lHl ,1'/(; rJC1n-1fCSIJD11_ 1\'(-' I 26 3M Clear Plastic Chemical Splash Impact Goggle or equivalent 1 I'J:;'1', i'.c:-::JOlj:;I\'(; "I':>I\-:PSDUII:i\.'e 27 Rubbermaid@ 28118 Quart Black Wastebasket or eculvalent 1 ,'!()iH,;S:JUIISivl.' f'J on-',; :,DO r-,:.ivo 281 Stanley 200z Smooth Hammel- with Angle Handle pr I eqlvalent I 1 Ij~'ll-r~';,rKln', .. ,'JCiI1 'esponSIVf-" 29 GE Energy Smart 50-Watt Replacement Indoor I Floodlight R20 6- Year Life CFL Bulbs or eauivalent 1 1'---'" "-,i.'C1r::'\"- r'I:)!, '-G~':-",!\,n Project Manager: Dennis Linguidi Collier County 10-5511 Hardware and Related Items Revised Tab Sheet /\g~'N:dt1t!~~Wrin~~;J?~ '.NIJdel ._ .;...fro Solicitations Dqv"flJ~q~~~j;6~ '~Bidder5: 2 No Bidders: 2 Sunshine Ace Barnes Distribution Item Description Quantity Hardware Cleveland, Ohio Naples, FL 30 Genova 1/2" CPVC Tee or equivalent 1 Non-respon:,ive Non-responsive 31 Charlotte Pipe 3" PVC 900 Elbow or equivalent 1 Non-respomive Non-responsive 32 Charlotte Pipe 3/4" x 10' Schedule 40 Plain End Pipe or equivalent 1 hJon-re~ponsive Non-respollsive 33 Gold Bond 1/2" x 8' x 4' Drywall or equivalent 1 Non-responsive Non-reSDonsive 34 SHEETROCK Brand 45 lb. Pail light Weight All Purpose Dryvvall Joint Compound or equivalent 1 Non-responsive Non-responsive 35 Warner Blue Steel Taping Knife or equivalent 1 Non-res[Jonsive Non-responsive 36 3M 1 O-Pack N95 Drywall Sanding Respirator with Valve or equivalent 1 Non-resPollsive Non-respomive 37 Kobal! 1 O~Piece SAE Hex Wrench Set or equivalent 1 Non-re~,poll:;ive Non-resrJOllsive 38 Shop-Vac 12 Gallon 5.5 HP (Peak) We! Dry Vacuum or equivalent 1 hlon-responsive Non-responsive 39 3M Synthetic Steel Wool ~ 6 Pack or equivalent 1 Non-responsive r~on -re~:Donsive 40 Polaraire@ Industrial Drum Fan or equivalent 1 Non-responsive Non-re;:f)onsive TOTAL $ - $ - FINAL PRICE PAID BY COLLIER COUNTY AFTER REBATE Attachment 1: Vendor's Check List Not provided Yes Attachment 2: Bid ResDonse Form Not Drovided Yes Florida Certificate of Author:!v Document Number Not provided P07211 Federal Tax Identification Number Not provided 60247840 Attachment 3: Insurance and Bonding Requirements Not provided Yes ,A.ttachment 4: Local Vendor Preferences Not provided No Attachment 5: Immiqration Affidavit Not provided Yes Exceptions to PO terms Miscellaneous and Conditions Barnes did not bid quantity as directed; refused to accept Missing Attachments County's PO Terms and Vendor Declared Non-Responsive 1 - 5 Conditions No Bids: Dade Paper and Bag Company, C & H Distributors Opened by: Joanne Markiewicz, 7/8/10, Noon Witnessed by: Brenda Reaves