TITLE
Consider a memorandum/resolution to enter into an interlocal agreement with OMNIA Partners purchasing cooperative.
SUMMARY
DATE: April 28, 2020
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Interlocal Agreement with OMNIA Partners Purchasing Cooperative
BACKGROUND AND FINDINGS:
In accordance with Texas Local Government Code, Section 271.102, Subchapter F, a local government may participate in a cooperative purchasing program which will satisfy any state law requiring the local government to seek competitive bids for the purchase of goods or services. In addition, purchasing through a cooperative program enhances the City’s buying power and can lower costs.
On August 12, 2013 the City of Killeen entered into an interlocal agreement to utilize The Cooperative Purchasing Network (TCPN) through City Council Resolution 13-008R. In December 2018, TCPN and U.S. Communities, another purchasing cooperative, merged and became OMNIA Partners. OMNIA Partners contracts are awarded by a government entity utilizing industry best practices, processes and procedures while adhering to the requirements of the law. OMNIA Partners provides access to vendors for goods and services pertaining to facilities, information technology, fleet, public safety, office supplies and more.
The table below shows the City’s annual expenses for the past three (3) years under the TCPN cooperative. Major contracts such as FuelMan, the program the City uses to fuel City vehicles, and Xerox copier leases are included in the totals below.
|
Year |
Expenses through TCPN Cooperative |
|
2017 |
$2,069,325 |
|
2018 |
$2,061,809 |
|
2019 |
$3,438,974 |
Due to TCPN and U.S. Communities merging to form OMNIA Partners, the City will need to enter into an interlocal agreement with OMNIA Partners to have continued access to the vendors used through TCPN cooperative. Joining OMNIA Partners cooperative will also allow the City to utilize new contracts established through OMNIA Partners.
THE ALTERNATIVES CONSIDERED:
1. Do not approve the interlocal agreement with OMNIA Partners purchasing cooperative.
2. Approve the interlocal agreement with OMNIA Partners purchasing cooperative.
Which alternative is recommended? Why?
The second alternative is recommended for the City of Killeen to have continued access to more than 300 contracts that have already been competitively procured.
CONFORMITY TO CITY POLICY:
The interlocal agreement between the City of Killeen and OMNIA Partners conforms to City policy and the Texas Local Government Code, Section 271.102, Subchapter F.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
There is no cost to join the OMNIA Partners purchasing cooperative.
Is this a one-time or recurring expenditure?
N/A
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
N/A
RECOMMENDATION:
City Council approve the interlocal agreement with OMNIA Partners purchasing cooperative and authorize the City Manager or designee to execute the interlocal agreement and any supplemental agreement as allowed by state and local law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Interlocal Agreement