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HomeMy WebLinkAboutItem 09 - Citywide Purchase Order Contract with Grainger, Inc. for Maintenance, Repair, and Operational Supplies Finance & Management Services www.santa-ana.org/finance Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 2, 2026 TOPIC: Citywide Maintenance, Repair, and Operational Supplies AGENDA TITLE Citywide Purchase Order Contract with Grainger, Inc. for Maintenance, Repair, and Operational Supplies (Specification No. 20-001) (Specification No. 25-048) (General Fund and Non-General Fund) RECOMMENDED ACTION Amend the Citywide Purchase Order Contract with Grainger, Inc. for maintenance, repair, and operational supplies by increasing the contract amount by $475,000, for a revised estimated annual amount of $500,000 for the remaining contract term expiring March 31, 2029, for a revised total amount not to exceed $2,075,000. GOVERNMENT CODE 484308 APPLIES: Yes DISCUSSION On April 1, 2025, the City Council awarded a Citywide Purchase Order Contract to Grainger, Inc. for maintenance, repair, and operational supplies in an amount not to exceed $1,600,000 for a contract term expiring March 31, 2029. Usage under this purchase order contract has increased and current operational needs now exceed the approved contract authority. Staff is requesting an additional $475,000 in contract authority to align with current operational usage for the remaining contract term. Following expiration of the prior purchase order contract and before the current purchase order contract became effective, City departments continued obtaining maintenance, repair, and operational supplies necessary to support ongoing operations and facility maintenance. Staff is requesting an additional $75,000 in contract authority to cover supplies received during that period. Approval of both requests would result in a revised total contract amount not to exceed $2,075,000. The Purchasing Division establishes annual Citywide purchase order contracts with vendors that provide goods and services required by multiple City departments on a recurring basis. These contracts provide an alternative to other agreements, helping departments manage costs while benefiting from vendor convenience. Grainger, Inc. provides a variety of essential items, including miscellaneous supplies, parts, Citywide Maintenance, Repair, and Operational Supplies June 2, 2026 Page 2 equipment, and materials needed for general maintenance and repairs throughout the City. Various departments, including Public Works, Police, Jail, Fleet, Facilities, and Parks and Recreation, rely on these contracts to order supplies as needed, ensuring uninterrupted operations and facility management. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the FY 25-26 budget under various departmental Miscellaneous Operating Expense accounts (No. 63001). Funding for subsequent fiscal years will also be included in these Miscellaneous Operating Expense accounts as part of proposed budgets for City Council consideration. An estimated annual amount of$500,000 may be utilized, but actual usage will vary based on operational needs and budget capacity. Total expenditures will not exceed the revised contract amount of$2,075,000. Prior to utilizing the Citywide contracts, the requesting departments will follow the Purchasing Policies and Procedures and ensure funds are available. Upon successful completion of the fiscal review, the Purchasing Division will approve orders in accordance with the Policy. Submitted By: Alexander Trinidad, Executive Director Finance and Management Services Agency Approved By: Alvaro Nunez, City Manager