HomeMy WebLinkAboutMINUTES - 07102012 - HA C.06RECOMMENDATIONS
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or his designee, to execute a
three-year contract with HD Supply to provide the Housing Authority with maintenance materials and supplies in an
amount not to exceed $500,000.
BACKGROUND
HACCC's contract for materials and supplies used by the Maintenance Department to complete work orders,
maintain the grounds and perform preventive maintenance at HACCC's public housing properties has expired. In
preparing to bid this contract out again, staff determined that significantly more advantageous pricing than would be
available to HACCC on its own could be obtained by linking to a contract for maintenance materials and supplies
between Maricopa County, AZ and HD Supply.
HUD requires housing authorities to competitively procure goods and services, a process normally undertaken by
each individual agency. However, HUD permits housing authorities to award contracts to firms selected by a state or
local governmental agency in a competitive solicitation process. The state or local government's selection process
must meet HUD's procurement guidelines and
Action of Board On: 07/10/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, District I
Commissioner
Candace Andersen, District II
Commissioner
Mary N. Piepho, District III
Commissioner
Karen Mitchoff, District IV
Commissioner
Federal D. Glover, District V
Commissioner
Geneva Green, Tenant Seat
Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: July 10, 2012
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C. 6
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Executive Director
Date:July 10, 2012
Contra
Costa
County
Subject:HD Supply Contract 2012
BACKGROUND (CONT'D)
must have been for the same goods and services sought by the housing authority. HUD encourages housing
authorities to procure goods and services in this manner in order to "foster greater economy and efficiency..."
HD Supply was awarded a contract to provide maintenance materials and supplies to Maricopa County from August
1, 2011 through July 31, 2014 with one year renewal options extending until 2017. Maricopa County awarded their
contract via the U.S. Communities Government Purchasing Alliance, a government purchasing cooperative with over
44,000 registered agencies. Maricopa County solicited fifteen proposals from vendors and received six responses.
Their bidding process meets HUD's guidelines.
HD Supply has served as HACCC’s primary maintenance materials and supplies vendor for over ten years. At
present, HACCC receives a 12% discount off the published catalog price for what HD Supply terms Tier 1 items and
a 12% discount off the published catalog price for Tier 2 items. By utilizing Maricopa County's procurement,
HACCC's discount will jump to 31% for Tier 1 items (+19%) and 25% for Tier 2 items (+13%).
Staff is recommending that HACCC award a contract to HD Supply to provide maintenance materials and supplies
for three years. The total cost of the proposed three year contract will not exceed $500,000 without additional Board
approval.
FISCAL IMPACT
The cost for these materials and supplies will not exceed $500,000 and is funded by the Housing Authority’s
(HACCC) Operating Subsidy grant received from HUD. The anticipated yearly amount of the contract falls within
the amount presently budgeted for this purpose.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to award the contract to HD Supply, HACCC will be required to go out
to bid for maintenance materials and supplies. This process will be lengthy and expensive. Also, because the volume
of HACCC's purchases as a solo agency will not match the expected purchases by Maricopa County in combination
with the other agencies that can access their procurement via the U.S. Communities Government Purchasing Alliance,
HACCC will likely have to pay more for maintenance materials and supplies than if HACCC contracted with HD
Supply under the terms obtained by Maricopa County.