Agenda 09/14/2010 Item #16E 2
Agenda Item No. 16E2
September 14, 2010
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation to reject award for Invitation to Bid (ITB) 10-5511 for Hardware and Related
Items.
OBJECTIVE: To reject ITB 10-5511 for hardware and related supplies and allow departments to
purchase hardware and related items per the Board's purchasing policy.
CONSIDERATIONS: The County Manager's Agency continuously examines its processes to reduce
expense to the agency 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 spent, or
added (but "hidden") expense. One such situation was our approach for purchasing hardware related
items. As such we are proposing a different approach that will net an estimated $15,000 - $25,000 in
benefits (a combination of increased revenue and reduced cost)s to the agency annually as compared
with the originally approach.
Specifically, departments purchased hardware related items on previous County contracts for repair
and maintenance. Agency-wide spending is approximately $450,000 annually, but on average only
$600 per order. The County's current contract vendors are Grainger Industrial Supplies (Ft. Myers)
and Sunshine Ace Hardware (Naples). In order to comply with the contract, staff often drives right
past non-contract hardware stores to purchase from contract vendors. This is the first "hidden"
expense, lost productivity time. The second "hidden" cost is the additional cost of gas, maintenance,
etc. on the fleet.
The advantage the County was attempting to obtain involved contracted vendors providing for a
"percentage discount off' list price for hardware categories (Le. lighting, tools, hardware supplies, all
of which receive a different discount). "Percentage discount off' contracts have been difficult to
administer. Vendors, field personnel and administrative staff often do not understand the varying
levels of discounts and how they are applied to the supply category that is purchased at the time of
the sale.
The third and most quantifiable "hidden" expense is the result of the discount not being applied
properly. When that occurs, there is additional lost productivity due to "back-end process re-work" of
the transaction, timeliness of payment to the vendor and accuracy of the County's operating and
capital financial records. On average, staff spends approximately two (2) hours to rework a
transaction (salary and benefit burden: $72 per transaction). Annually, the cost of rework is
approximately $20,000 (280 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" using the multi-level discount strategy.
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 ITS opening, Purchasing staff declared
both vendors' bids (Sunshine Ace Hardware and Sames Distribution) as non-responsive; Barnes
Distribution would not agree to the County's terms and conditions, and Sunshine Ace Hardware did
not provide the required documentation.
Agenda Item No. 16E2
September 14, 2010
Page 2 of 5
After reviewing the County's spending patterns; analyzing productivity time, effort and costs
associated with the process re-work effort; studying current market trends; and determining that three
of the four local and direct retail hardware companies did not participate in the competitive solicitation
process, the Purchasing staff recommends that the Board:
1. Rejects the bids received; and
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 hardware
store (e.g. Ace Hardware, Home Depot, Lowe's and Sears) according to the Board's
purchasing policy (Section III Purchases Not Exceeding $3,000). Due to the nature of these
small purchases and the way departments purchase hardware, these transactions will be
managed on an individual basis and not a cumulative basis by vendor. Individual purchases
which exceed $3,000 (which would be rare) would be competitively let in accordance with the
purchasing policy. With no contractual discounts, it is expected that there will be an out of
pocket increase of approximately $10,000 annually (or 2.2% increase).
Purchasing further recommends that Departments should use the County's purchasing card 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 700 hours annually, which is
conservatively estimated to be worth at least $19,500 annually. Also, use of the p-cards for the
majority of these transactions has the potential to return to the organization approximately $6,100 in
additional revenue annually.
The Purchasing staff will endeavor to negotiate an additional discount for large purchases (up to
$3,000) made at the "contractor's desk" at the local hardware stores and will reassess future
hardware and related supplies market conditions in fiscal year 2011.
FISCAL IMPACT: Departments have budgeted for hardware and related supplies in their 2010 and
2011 budgets; there is no new budget impact.
GROWTH MANAGEMENT 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.
RECOMMENDATIONS: 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.
PREPARED BY: Joanne Markiewicz, Acquisitions Manager
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 16E2
September 14, 2010
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16E2
Recommendation to reject award for Invitation to Sid (ITS) 10-5511 for Hardware and
Related Items.
9/14/20109:00:00 AM
Prepared By
Joanne Markiewicz
Administrative Services
Division
Manager - Purchasing Acquisition
Date
Purchasing & General Services
8/11/20103:50:18 PM
Approved By
Scott R. Teach
County Attorney
Deputy County Attorney
Date
County Attorney
8/19/2010 1 :23 PM
Approved By
Skip Camp, C.F.M.
Administrative Services
Division
Director - Facilities Management
Date
Facilities Management
8/26/2010 2:49 PM
Approved By
Steve Carnell
Administrative Services
Division
Director - Purchasing/General Services
Date
Purchasing & General Services
8/30/20103:18 PM
Approved By
Len Golden Price
Administrative Services
Division
Administrator - Administrative Services
Date
Administrative Services Division
8/31/20101:46 PM
Approved By
OMB Coordinator
County Manager's Office
Date
Office of Management & Budget
9/1/20102:02 PM
Approved By
Therese Stanley
Office of Management &
Budget
Manager - Operations Support - Trans
Date
Office of Management & Budget
9/3/2010 1 :01 PM
Approved By
Mark Isackson
Office of Management &
Budget
Management/Budget Analyst, Senior
Date
Office of Management & Budget
91712010 3:40 PM
Project Manager: Dennis linguidi
Collier County
10-5511
Hardware and Related Items
Revised Tab Sheet
Age~'~1~tm N~L1P.E2
S t~lno~P~if,I'Zdffl
Solicita ions Dqwc'jl~itfCOj6~
Bidders: 2
No Bidders: 2
lied Sin Ie Rebate
1 3/8 x 4 foot x 8 foot rated plywood sheathing
2 Arrow heavy-duty staple tacker gun or equivalent
3 Arrow Fastener 3/8 In. Powers hot Heavy Duty Staples or
equivalent
4 Rubbermaid 32-Gallon Brute Trash Can wlLid or
equivalent
5 Bounty 6-Pack 147-Count Mega Roll Select A Size
Paper Towels
6 Sellars 200-Pack Paper Towels or equivalent
7 The Hillman Group Wet Floor "A" Frame Sign or
equivalent
8 UltrasacC 42 Gal. Extra Heavy Duty Contractor Bags, 50
ct. or equivaoent
9 Porter-Cable 7-1/4" 15-Amp Laser-Guided Circular Saw
or equivalent
10 Makita Reclpro Saw Variable Speed or equivalent
11 2 In. x 4 In. x 12 Ft. Kiln Dried Dimensional Lumber
12 Trubord 7/16 In. x 4 Ft. x 8 Ft. OSB Sheathing
13 Toggler, pack of 50,318 In. Dia.Flushmount A10 Solid
Wall Anchor
14 #8 x 1-3/4 in. Wood Screw, Flat Head, Zinc (Pk of 100)
15 #14 x 2-1/2 in. Wood Screw, Flat Head, Zinc (Pk of 25)
16 #12 x 1-1/4 in. Wood Screw, Flat Head, Zinc (Pk of 50)
17 1-Lb Box of 266 1-1/4 In. Drywall Screw Coarse Grip-rite
Fastener
18 t#3 x 1/2 in. Wood Screw, Flat Head, Brass (Pk of 100)
19 Werner 24 Ft. Aluminum Extension Ladder With Built In
Leveling System, Type II 225 Lbs Load Capacity or
equivalent
20 Wemer 8 Ft. Fiberglass Stepladder Type lA, 300 Lbs
Load Capacity or equivalent
21 Werner 6 Ft. Fiberglass Stepladder Type IA 300 Lbs.
Load Capacit or equivalent
22 Clorox Clorox@ Commercial Solutions@ Germicidal
Bleach 96 Oz. or equivalent
23 Custom Building Products VersaBond Fortified Thin-Set
Mortar White 50 Lb. or equivalent
24 Custom Building Products AcrylPro Ceramic Tile
Adhesive 3.5 Gallon or equivalent
25 Kidde RecreationaI1A-10B:C Extinguisher or equivalent
263M Clear Plastic Chemical Splash Impact Goggle or
equivalent
27 Rubbermaid@ 281/8 Quart Black Wastebasket or
equivalent
28 Stanley 20oz. Smooth Hammer with Angle Handle pr
eqivalent
29 GE Energy Smart 50-Watt Replacement Indoor
Floodlight R20 6-Year Life CFL Bulbs or equivalent
Project Manager: Dennis Linguidi
Collier County
10-5511
Hardware and Related Items
Revised Tab Sheet
Age~~1~tm Nt:L1~
S ti:!lno~p~tf,r'lctffl
Solicita ions D9W~~~<oj6!l
Bidders: 2
No Bidders: 2
30 Genova 1/2" CPVC Tee or equivalent
31 Charlotte Pipe 3" PVC 90. Elbow or equivalent
32 Charlotte Pipe 3/4" x 10' Schedule 40 Plain End Pipe or
equivalent
33 Gold Bond 1/2" x 8' x 4' Drywall or equivalent
34 SHEETROCK Brand 45 lb. Pail Light Weight All
Purpose D all Joint Compound or equivalent
35 Warner Blue Steel Taping Knife or equivalent
363M 10-Pack N95 Drywall Sanding Respirator with Valve
or e uivalent
37 Kobalt 10-Piece SAE Hex Wrench Set or equivalent
38 Shop-Vac 12 Gallon 5.5 HP (Peak) Wet Dry Vacuum or
equivalent
393M Synthetic Steel Wool- 6 Pack or equivalent
40 Polaraire@ Industrial Drum Fan or equivalent
TOTAL
FINAL PRICE PAID BY COLLIER COUNTY AFTER REBATE
Attachment 1: Vendor's Check List Not provided Yes
Attachment 2: Bid Resoonse Form Not provided Yes
Florida Certificate of Authoritv Document Number Not orovided P07211
Federal Tax Identification Number Not provided 60247840
Attachment 3: Insurance and Bondina Requirements Not provided Yes
Attachment 4: Local Vendor Preferences Not provided No
Attachment 5: Immiaration 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-Resoonsive 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