To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: APPROVE AND AUTHORIZE THE EXECUTIVE DIRECTOR, OR HIS DESIGNEE, TO EXECUTE AN AGREEMENT WITH HD SUPPLY FACILITIES MAINTENANCE TO SUPPLY FACILITIES MAINTENANCE, REPAIR, OPERATING AND INDUSTRIAL MATERIALS AND RELATED SERVICES
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or designee, to execute a contract amendment with HD Supply Facilities Maintenance (dba HD Supply) to extend the term through December 31, 2026 and increase the payment limit by $2,000,000 to a new payment limit of $4,000,000 to provide facilities maintenance, repair, operating and industrial materials, and related services.
BACKGROUND:
To ensure the continuous operation and maintenance of its public housing developments and the agency’s offices, HACCC staff require tools and supplies to address plumbing, HVAC, electrical, flooring, kitchen and bath, janitorial, landscaping, painting and needs among others, on a daily basis. HACCC requires a vendor that can meet these needs in a timely manner to ensure optimum customer service to our residents and staff. A master contract will ensure continuity of products, fast and easy ordering, trackable invoicing, and next-day delivery systems to minimize the interruption in the daily workflow of HACCC staff.
In soliciting this contract HACCC has made use of its ability to utilize interagency purchasing agreements. HUD requires housing authorities to competitively solicit goods and services. However, instead of conducting the entire procurement process in-house, HUD permits, and even encourages, housing authorities to procure goods and services via cooperative and interagency agreements. Such agreements can greatly simplify and expedite the procurement process since the housing authority does not have to develop specifications, solicit vendors for bids or evaluate those vendors that submit bids for every procurement. Also, cooperative agreements can offer substantial pricing discounts to housing authorities because vendors can price their products and services more aggressively when they know their customer base is significantly larger than just one agency. HACCC’s responsibility when using a cooperative agreement involves confirming that the original procurement was executed according to HUD requirements.
In seeking a vendor to supply facilities maintenance, repair, operating and industrial materials and related services, the Authority utilized an interagency purchasing agreement to award the initial contract to HD Supply in February 2017. That initial contract was awarded through Maricopa County, AZ's solicitation for Maintenance, Repair, Operating Supplies, Industrial Supplies and Related Services issued January 11, 2017 (Effective 02/01/2017).
The initial contract was awarded to HD Supply. HD Supply was awarded a contract via a solicitation issued by Maricopa County, Arizona through the U.S. Communities Government Purchasing Alliance (USCGPA). USCGPA is the leading national cooperative purchasing program, providing world class government procurement resources and solutions to local and state government agencies, school districts (K-12), higher education institutions, and nonprofits looking for the best overall supplier government pricing. The benefits of using USCGPA include a no-fee-or-cost process that, by combining the potential cooperative purchasing power of up to 90,000 public agencies, enables access to the best overall supplier government pricing on quality brands that are backed by the integrity, experience, and oversight by public purchasing professionals.
In 2017, six bidders responded to the solicitation and HD Supply was selected as the most qualified, responsible bidder. Since the USCGPA award to HD Supply was for a period extended to December 31, 2026, HACCC can utilize this award any time prior to December 31, 2026, to sign its own contract with HD Supply. HD Supply has demonstrated the ability to successfully implement a multi-state cooperative purchasing program with U.S. Communities as part of contract 16154-RFP for Wholesale Maintenance, Repair and Operating Supplies for over 5 years. They've greatly increased awareness of the USCGPA Program to promote the benefits of using a compliant cooperative contract that has been competitively solicited through a Lead Public Agency, Maricopa County, and continues to promote the contract to best serve the needs of public agencies.
HD Supply is one of the largest industrial distributors in North America. The company provides a broad range of products and value-added services to approximately 500,000 customers with leadership positions in maintenance, repair and operations, water infrastructure and residential and non-residential construction sectors. Their leading businesses include HD Supply Facilities Maintenance, HD Supply Waterworks and HD Supply Construction & Industrial - White Cap. HD Supply has an expansive product offering of approximately 800,000 SKUs of quality, name-brand, and proprietary products at competitive prices. With approximately 550 locations across 48 states and six Canadian provinces, their 13,000 associates provide localized, customer-driven services including jobsite delivery, will call or direct-ship options, diversified logistics and innovative solutions that contribute to our customers' success. In California, HD Supply maintains supply warehouses in the City of Industry, Sacramento, San Diego, and Hayward. By contracting with HD Supply through USCGPA, HACCC will reap the benefits of savings on the products and services previously negotiated.
HACCC anticipates that the total cost of the contract will be $2,000,000 through December 31, 2026. At that time, if the HD Supply contract with Maricopa County is extended, HACCC will seek to further extend this contract and return to the Board for approval of an extension.
FISCAL IMPACT:
The Housing Authority’s (HACCC) total cost for this service will not exceed $2,000,000. Funding for this contract is included in HACCC's current budget using funds provided by the U. S. Department of Housing and Urban Development.
CONSEQUENCE OF NEGATIVE ACTION:
Should the Board of Commissioners elect not to award the contract to HD Supply Facilities Maintenance, HACCC will be required to go out to bid for maintenance, repair, operating and industrial supplies. This process would be lengthier and likely more expensive than procuring via this USCGPA process.
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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. |
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ATTESTED: |
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Joseph Villarreal, Executive Director |
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By: |