COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Action: Cooperative Purchases of Supplies and Products with Amazon.com Services, LLC (Jill Olsen)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
To consider approval of cumulative, cooperative purchases greater than the City Manager’s expenditure threshold with Amazon.com Services, LLC (Amazon) for miscellaneous supplies and products utilizing Mohave Educational Services Cooperative, Inc.’s (MESC) Contract 24I-AMZ-0411, in accordance with City Code § 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
MESC issued a cooperative purchase contract 24I-AMZ-0411 effective April 11, 2025, with Amazon.com Services, LLC for an Online Marketplace for purchases of transactional items, materials, products and equipment. The awarded contract was for a one (1) year initial term and may be extended for a maximum aggregate term of five (5) years. The final expiration date for this cooperative contract is April 11, 2030.
The estimated annual expenditure is based on the needs of various departments throughout the City. Departments utilize Amazon to purchase various goods and supplies not readily available through existing contracts or local vendors. Amazon functions as a marketplace platform, connecting the City to numerous third-party sellers while providing competitive pricing, fast delivery, transaction transparency, and digital reporting tools. Departments primarily utilize Amazon for transactional, low-cost items essential for daily operations and are not on contract through another supplier for commodity-specific expenditures at a more competitive price. In addition, Amazon provides a punch-out catalog in the City’s financial system, Oracle, which streamlines purchasing by providing real-time pricing, ensures compliance with contracts, and minimizing administrative workload while delivering a familiar shopping experience for end users and provides better spend visibility.
City staff seeks approval to exceed the annual expenditures threshold for purchase of these items for the term and for any renewals of the cooperative agreement. These authorizations are for items routinely purchased by the City and any non-routine purchases individually exceeding the threshold will be presented to City Council for separate consideration.
COMMUNITY IMPACT:
Utilizing MESC’s cooperative contract is advantageous because it provides market share leverage by combining the City’s purchase requirements with other public entities thereby gaining economies of scale. The City obtains budgetary benefits achieved through combined volume purchases, delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses.
FISCAL IMPACT:
Funds are allocated and available in each department budget for this expenditure.
ATTACHMENTS:
N/A
SUGGESTED MOTION:
I move to approve routine purchases for supplies and products from Amazon.com Services, LLC, exceeding the expenditure threshold but not to exceed the annual departmental budgets for the duration of the Cooperative Purchase Agreement.