DATE: August 6, 2019
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Amendment to Cintas Uniform Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute the First Amendment to Agreement No. A-17-061 with Cintas Corporation No. 3 for countywide uniform services, effective upon execution with no change in term to March 6, 2022, increasing the maximum by $650,000 to a total cost not to exceed $1,650,000.
REPORT
There is no increase in Net County Cost associated with the recommended action. The costs associated with this agreement are charged to user departments. The County contracts with Cintas Corporation No. 3 for uniforms services, which also includes mats and dusting materials. Increases to the contract are now required due to an increase in County personnel, serviced facility locations, and selection of uniforms by departments. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the provision of uniforms and associated laundering service requests would go unfulfilled.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum costs in the agreement were estimated based on historical usage. This proposed amendment is now needed to increase the maximum costs due to a countywide increase in demand for uniform services. The first year of the agreement has exceeded the maximum amount of $200,000 by $44,919, the second year of the agreement has exceeded the maximum amount of $200,000 by $102,705. Approval of the recommended action increases the potential five-year maximum agreement cost to $1,650,000: $950,000 for the initial three year term, $350,000 for the fourth year, and $350,000 for the fifth year. This represents an increase to the current maximum agreement amount of $650,000: $350,000 for the initial three year term, and $300,000 total for years four and five. All costs associated with the services provided through this agreement are billed to user departments.
DISCUSSION:
On March 7, 2017, the Board approved countywide Agreement No. A-17-061 (managed by ISD-Purchasing) with Cintas Corporation No. 3 for the rental, laundering and delivery of uniforms, linens, mats, and dusting materials. The projected costs of this contract were originally based on historical usage. Since the start of the contract, County personnel and serviced facility locations have increased, resulting in an increased demand of uniforms and mats. Increases are also attributable to departments selecting the types of uniforms that better serve their needs, including additional garments other than those specified in the original proposal.
The recommended amendment will increase the initial three year term maximum by $350,000, and one year optional extension maximums by $150,000 each. Maximum compensation limits in years 1 and 2 of the agreement were exceeded by $44,919 and $102,705, respectively, and payments were made to the vendor to not disrupt the delivery of services to user departments. The compensation language in the amendment will eliminate the yearly expenditure limits of the original agreement and ratify the payments that exceeded the yearly limits mentioned above. It should be noted that staff has reviewed their internal processes to ensure adequate tracking of agreements in the future.
The recommended amendment increases the maximum compensation amount by $650,000 in order to continue to fulfill the increased demand for uniform services. The recommended amendment will also update the vendor’s pricing schedule to list items not included in the original agreement. There are no other changes in the terms and conditions of the original agreement.
REFERENCE MATERIAL:
BAI #31, March 7, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Agreement
CAO ANALYST:
Yussel Zalapa