APPROVE spending authority in the amount of $34,278,276.30 for Purchase of Maintenance, Repair, Operating and Industrial Supplies and Equipment through the Interlocal Agreement for Cooperative Purchasing for Various Departments, with Sourcewell contractors W.W. GRAINGER - $22,537,985.72 and SID TOOL CO., d/b/a MSC INDUSTRIAL SUPPLY CO. - $11,740,290.58 - General, Enterprise and Other Funds

E32941 – Approve Spending Authority in the amount not to exceed $34,278,276.30 for the purchase of maintenance, repair, operating (MRO), and industrial supplies and equipment through the Interlocal Agreement for Cooperative Purchasing with Sourcewell for various departments.

Specific Explanation:

The Chief Procurement Officer recommends that City Council approve spending authority in the amount not to exceed $34,278,276.30 for the purchase of maintenance, repair, operating (MRO), and industrial supplies and equipment for various departments, and that authorization be given to make purchases using purchase orders and the City’s purchasing cards, as needed, through the Interlocal Agreement for Cooperative Purchasing with Sourcewell contractors W.W. Grainger and Sid Tool Co., d/b/a MSC Industrial Supply Co. The contract term for both Grainger and MSC is through November 8, 2026.  

W.W. Grainger: Approve the award for the purchase of MRO supplies and equipment in the amount not to exceed $22,537,985.72.

MSC Industrial Supply: Approve the award for the purchase of MRO supplies and equipment in the amount not to exceed $11,740,290.58.

These contracts provide MRO supplies and equipment. Examples of MRO supplies and equipment are, but not limited to, pumps, motors, belts, electrical equipment and supplies, material handling equipment, fasteners, blowers, ventilators, lubricants, gaskets, repair tools, hand tools, power tools, bolts, bearings, batteries, safety and office supplies and equipment, etc.

Purchases will be made online through the City’s Marketplace portal, or through the vendors website. This allows departments to compare item costs between vendors and significantly reduces paper transactions and overall delivery time. Shorter delivery times will reduce the amount of inventory needing to be stored on site. Most order deliveries will occur same or next business day.

This recommendation is made pursuant to subsection 271.102(c) of the Texas Local Government Code, which provides that “a local government that purchases goods or services from a cooperative purchasing program or organization satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.

M/WBE Subcontracting:

M/WBE Zero Percentage Goal Document approved by the Office of Business Opportunity.

Hire Houston First:

This procurement is exempt from the City's Hire Houston First Ordinance. Bids/proposals were not solicited because the department is utilizing an Interlocal/Cooperative Purchasing Agreement for this purchase.

Fiscal Note:

• Funding for this item is included in the FY24 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

• No Fiscal Note is required on grant items.

$12,691,319.21 - Water & Sewer System Operating Fund (8300)

$  9,807,328.74 - General Fund (1000)

$  5,000,000.00 - HAS - Revenue Fund (8001)

$  2,674,428.35 - Fleet Management Fund (1005)

$  1,798,226.00 - Dedicated Drainage & Street Renewal Fund – Metro et al (2312)

$  1,030,000.00 - Federal Government Fund (5000)

$     784,669.00 - Storm Water Fund (2302)

$     271,162.00 - Parks Golf Special Fund (2104)

$     136,200.00 - Park Special Revenue Fund (2100)

$       48,943.00 - Central Service Revolving Fund (1002)

$       36,000.00 - BARC Special Revenue Fund (2427)

$34,278,276.30 – TOTAL

Jedediah Greenfield, Chief Procurement Officer

Finance Department

Phone: (832) 393-9126