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Agenda 07/22/2008 Item # 9EAgenda Item No. 9E July 22, 2008 Page 1 of 5 EXECUTIVE SUMMARY THAT THE BOARD OF COUNTY COMMISSIONERS ACCEPTS THE FINDINGS OF THE PRODUCTIVITY COMMITTEE REGARDING OFFICE FURNITURE PROCUREMENT. REQUEST THE PRODUCTIVITY COMMITTEE'S LIAISON, COMMISSIONER FIALA, TO DELIVER THE COMMITTEE FINDINGS. OBJECTIVE: That the Board of County Commissioners accepts the findings of the Productivity Committee regarding office furniture procurement. Request the Productivity Committee Liaison, Commissioner Fiala, to deliver the committee findings. CONSIDERATIONS: At the Board of County Con mission meeting of May 27, 2008, Mr. Dustin Tidwell of Marco Office Supply, under Public Petition, presented a Petition and Report of Current Furniture Vendor, prepared by himself. The Board members unanimously directed the Productivity Committee and the Purchasing Department to review this issue and bring it back to the Board at a future meeting. The Productivity Committee discussed this matter, with the participation of Steve Carnell, Purchasing Director, as well as input from Mr. Tidwell, at their meeting of June 18, 2008. A report of the findings, dated June 23, 2008, of the review at that meeting is attached. Summarily, the Productivity Committee finds that "...the County has a sound approach to planning and acquiring office furniture that is consistent with widely established practices of government and business. " FISCAL IMPACT: None. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: None. RECOMMENDATION: That the Board of County Commissioners accept the findings — as final - of the Productivity Committee on furniture procurement. Prepared by: Commissioner Tom Henning Page 1 of 1 Agenda Item No. 9E July 22, 2008 Page 2 of 5 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 9E Item Summary: That the Board of County Commissioners accepts the findings of the Productivity Committee regarding office funiture procurement. Request the Productivity Committee's liaison, Commissioner Fiala, to deliver the committee findings. Meeting Date: 7/22/2008 9.00.00 AM Prepared By Sam Tucker Executive Aide to the BCC Date Board of County BCC Office 7/10200610:52:15 AM Commissioners Approved By Sue Filson Executive Manager to the BCC Date Board of County BCC Office 7/1112008 10:54 AM Commissioners Approved By John A. Yonkosky Director of the Office of Management Date County Manager's Office Office of Management & Budget 711412008 8:05 AM Approved By James V. Mudd County Manager Date Board of County County Manager's Office 7/1412008 11:33 AM Commissioners file: / /C:\AgendaTest \Export\ 1 1 1- July% 2022,% 202008 \09. %20BOARD %200F %2000UNT... 7/15/2008 EACH COW. RECD DF FH V)F( K Memorandum To: Collier County Board of Commissioners From: Mike Sheffield, Staff- Liaison to the Productivity Committee Date: June 23, 2008 soaro of County : ;omnusmnem Subject: Furniture Procurement Review conducted by the Productivity Committee At the request of the Board of County Commissioners, the Productivity Committee recently conducted a review of the cost effectiveness and efficiencies of the County's office furniture procurements. At their meeting held on June 18, 2008, the Productivity Committee heard presentations from Mr. Tidwell of Marco Office Supply and from Steve Carnell, Director of the Purchasing Department. In addition, the Productivity Committee reviewed a great deal of material submitted by Mr. Tidwell and county staff, as well as material submitted by county vendors. Attached you will find the letter to the Board of County Commissioners submitted by the Chairman of the Productivity Committee, Larry Baytos. The letter contains a summary of their unanimously approved findings and recommendations. Should you have any questions, please do not hesitate to contact me. Cc: Jim Mudd, County Manager Leo Ochs Jr., Deputy County Manager Len Golden -Price, Administrator - Administrative Services Division Agenda Item No. 9E July 22, 2008 Page 4 of 5 June 23, 2008 To: Board of County Commissioners Collier County At your request the Productivity Committee undertook a priority review of Mr. Tidwell's recent criticisms of County office furniture purchasing practices. He maintained that the County paid excessive prices for office furniture, refused to consider a competitive bid from his employer, wasted money for outside office layout design services and other issues. Committee members reviewed a great amount of written materials and at our June 18 meeting spent nearly two hours hearing remarks from interested parties and discussing the issues. In short, we concluded that the County has a sound approach to planning and acquiring office furniture that is consistent with widely established practices of government and business. There is no evidence of malfeasance by staff or suppliers nor is there evidence of gross waste of County funds. The Productivity Committee sees no purpose to study the vendor protest further. Purchasing Strategy and Policy To put Mr. Tidwell's criticisms in context it is necessary to understand the current County policy for purchasing office furniture. The BCC established the standards for office furniture through a deliberate and competitive process. Herman Miller and Steelcase subsequently were selected as primary suppliers. Advantages of focusing on a limited number of suppliers include: • Provides for consistent office furnishing throughout county government, facilitating interchange of furniture between departments and divisions due to reorganizations or new and reconfigured buildings. Examples of savings in recent projects were cited. • A systems approach reduces the staffing required to purchase office furniture. • Due to an umbrella purchasing agreement negotiated by State, prices paid by Collier County for the selected furniture are the lowest available nationally and within the state. The Collier County policy of focusing on two brands is a mainstream management practice used by Florida government agencies. For example, Lee, Charlotte, Sarasota, Broward counties use the same furniture brands and often similar price level products as Collier does. It is always possible to buy cheaper office furniture, but price is only one factor. Furniture should be ergonomically sound as it may affect employee health and productivity. An estimated 85% of the population will experience low back pain in their lifetimes. Higher quality furniture often comes with longer term and/or broader warranties than brands sold primarily on price. The downsides of a focus on a few brands is that it may generate resentment among local merchants who are not franchised to sell the equipment specified, vigilance is required to assure that the County obtains all the discounts and services that it should, and the potential for using newer and/or less expensive brands may be undervalued. However, these risks are manageable and are outweighed by the benefits of the policy. Design Services Mr. Tidwell stated that he could provide office layout design services to the County for little or no fee. He retracted his offer of design services after learning that neither he, nor his employer, meets the professional licensing requirements for that activity under Florida law. In any event, prudent use of outside office layout design services is a reasonable and customary procedure that provides access to skills that are impractical to retain on county staff due to the specialized and periodic nature of the work. Also, an independent professional viewpoint can be helpful to avoid pressure from departments for more or better furniture than the County standard. Jun 23 08 01:24p Agenda Item No. 9E July 22. 2008 Page 5 of 5 Tie Glass Reception Desk Much attention has focused on a 510,000 glass desk sitting in a warehouse. We now know that the unit was purchased last year for installation in a public area of the new Emergency Operations Center. Perhaps a modest premium was paid to achieve aesthetic goals, but economic pressures will undoubtedly result in a more utilitarian approach going forward Evidence that a frugal mindset is now in place are efforts reported by staff to redeploy substantial amounts of existing furniture to new facilities and a variety of expense reduction initiatives incorporated in the budgets now under development Options for Policy & Procedures Any policy in effect for many years should be challenged periodically even if it is a normative government practice; the office furniture policy is no exception. The current fiscal squeeze lends urgency to critical review. In a quest for continuous improvement, the following initiatives should be carefully evaluated. 1. Conduct a market review to identify if there are credible alternatives to Herman Miller and Steelcase. Consider the delivered price of the product line, but also evaluate product quality/warranties, compatibility with the furniture currently installed, existence of a Collier location and service and design capability of supplier. 2. Verify that all services provided under existing purchase agreements are being provided at the lowest price available. Determine if there ate other Steelcase and Herman Miller dealers in the region who can provide better or less expensive service. 3. To control future office funiture investments, evaluate the potential savings for "hoteling" office employees and controlled expansion of the work at home programs. 4. The review of the office furniture policy might benefit by formation of a Committee representing various functional groups within the BCC departments as well as representatives from the constitutional officers. Staff indicated that they welcome the opportunity to address these challenges. Thank you for the opportunity to address this vendor protest Please advise if you have any questions regarding these findings and recommendations that have received the unanimous support of the Productivity Committee. Sincerely, ►a