Title
Contract #: RFB -1105
Just-In-Time Maintenance, Repair and Operations (MRO) - Contract
Body
Agenda of: July 25, 2018
Item No.:
Amount: Not to exceed $ 1,832,703.72 Two Years
$ 916,351.86 First Year Renewal Option
$ 916,351.86 Second Year Renewal Option
$ 3,665,407.44
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 25, 2018
RE: Contract No.: RFB -1105
Just-In-Time Maintenance, Repair and Operations (MRO)
Vendor: W. W. Grainger, Inc.
MOTION
Upon recommendation of Gaylor Johnson, Chief Procurement Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. RFB-1105, “Just-In-Time Maintenance, Repair and Operations (MRO)” with W. W. Grainger, Inc., at a cost not to exceed $1,832,703.72 for a duration of two years with two one-year renewal options at $916,351.86 per year; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (GLWA) has determined that it is in the best interest of the organization to continue with the Desktop Delivery of Maintenance, Repair and Operation (MRO) supplies. Since the original MRO contract began in 2014, GLWA has been able to remove obsolete and slow-moving stock items that occupied warehouse space unnecessarily.
The average cost of MRO supplies stored in the warehouse represented approximately 2% of the current inventory stored. The various MRO supplies ordered will be used throughout all GLWA plants and facilities.
JUSTIFICATION
The continuation of this MRO contract will allow the organization to operate in an efficient manner. The MRO contract will allow GLWA to continue to optimize valuable warehouse space, provide delivery of items not frequently ordered and delivery of special order type items to the various GLWA end users.
FINANCIAL PLAN IMPACT
These items are expensed throughout GLWA’s Operations and related budget. These items are small dollar purchases limited to $2,000 per order and subject to a GLWA automated approval process with internal controls between the operational requisitioner and the authorized, independent Logistics & Materials team member.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
This award of this contract continues the optimal practice of just in time delivery of recurring, low dollar, and in some instances, high volume purchases.
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors for consideration.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.