Title
Staff Report for a Resolution of the City of San Leandro City Council to Approve a Non-Professional Services Agreement with Krueger International, Inc. for Procurement and Installation of Furniture in the Amount of $211,928 for the Police Building and South Office Modifications Project, Project No. 2014.0481
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends approval of the Non-Professional Services Agreement (NPSA) with Krueger International, Inc. for the procurement and installation of new furniture associated with the subject project.
BACKGROUND
The Police Building and South Office Modifications Project is currently under construction. The scope of work includes tenant improvements at the South Office Building and two-thirds of the first floor of the Public Safety Building. The renovated portions of the buildings require new tables, desks, chairs, and other typical office furniture.
Analysis
Furniture purchase is not well suited to competitive bidding. Materials, patterns, styles, quality, and durability are not identical between furniture manufacturers. Specifying particular items restricts bidding to only one manufacturer. When only one manufacturer can bid without competition, there is no incentive to provide low prices. Specifying general requirements for furniture fosters competition but quality and design are hard to judge and the process can result in low quality items or items that do not meet functional design standards.
Public agencies commonly purchase furniture through multi-agency negotiated contracts. These contracts are commitments to provide specific items at set prices. The evaluation process varies depending on the products supplied; in general, bidders are evaluated based on pricing and quality. Contracts are typically one or two years in duration. The City successfully used multi-agency negotiated contracts for the kitchen renovations at the Marina Community Center and the purchase of a fire engine.
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