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TO: Mayor Richard C. Irvin
FROM: Christopher Minick, Chief Financial Officer/City Treasurer
Michael Pegues, Chief Information Officer
DATE: November 4, 2021
SUBJECT:
Renewal of an Agreement for Consulting Services with Marketplace.city 1218 West Oakdale Avenue, Chicago IL 60657 for the purpose of performing technology purchasing searches.
PURPOSE:
The City strives to purchase all goods and services in an efficient and cost effective manner at the lowest responsible price. In areas of specialty purchasing the City has in the past used the services of outside vendors to aid in our purchasing process. The City has been working with Marketplace.city for the past two years and feels it has been a successful partnership. Approving an agreement with Marketplace.city (Marketplace) will continue to provide portal to research technology related purchases across the country.
BACKGROUND:
The City uses a variety of processes to purchase goods and services including the use of third party consultants in areas with restricted access or areas requiring technical expertise. Our utilization of brokers/consultants for the purchase of health/life and risk/liability insurance coverage is a typical example.
In 2019, Resolution R19-294 was approved as the first entrance into a partnership with Marketplace.city to provide technology related services/software/equipment. Both parties feel the service has been valuable and allows the current purchasing staff to assist with these procurements but frees up their time to work on other Bids/RFP's.
DISCUSSION:
The City wishes to enter into an updated MOU for a three year term with the option of two 1-year extensions based on mutual agreement between the City and Marketplace.city.
Marketplace will continue to provide for selection/search of technology related services/supplies/equipment at a fee for service price of 7.0% of the purchase price. A copy of the agreement with Marketplace is attached. Utilizing these services does not result in any direct costs to the City as vendors pay Marketplace directly upon being chosen to provide services or goods to the City (within 30 days of being paid by the City for a given contract/purchase).
Included in the supporting documents is a summary of the past two years' activity and projects/cost savings performed by Marketplace. It is projected that the City has saved over $1.2 million in contracted costs and over $213,000 in staff costs have been saved through the use of the Marketplace.city service.
Each year Staff will review the performance of Marketplace. This review will include the performance of recommended vendors as well as a statistical review of pricing through Marketplace compared against any available data of pricing from other purchasing portals or through an independent search.
All purchases with Marketplace.city will continue to follow the City of Aurora purchasing processes and any purchase over $50,000 will still be presented to the City Council for approval.
Staff will also review the total hours saved by in-house staff in performing independent bids/searches for all items/services purchased during the review period.
IMPACT STATEMENT:
Approving this agreement will allow the City to continue to efficiently purchase technology solutions and/or services in an efficient manner.
RECOMMENDATIONS:
Staff recommends that this resolution be adopted to employ the services of Marketplace.city as attached.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving a renewal agreement with Marketplace.city of 1218 West Oakdale Avenue, Chicago, IL 60657 to perform purchasing searches for technology related goods/services
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora has employed the use of professional consultants in the purchase of goods and services as an efficient means for such acquisition; and
WHEREAS, Marketplace.city has been a valuable partner with the City for the past two years; and
WHEREAS, the City has reviewed the services of Marketplace.city for the purchase of technology related goods and services and finds their services to provide a competitive and efficient method for such purchase; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the City of Aurora agrees to receive purchasing search/selection services for technology related goods and services as detailed in the attached agreement at a fee paid by the vendor not to exceed 7% of the purchase price of any given purchase;
And be it further resolved that the City agrees to a three year agreement with the option of two 1-year extensions upon mutual consent of both parties and satisfactory performance as outlined in the attached agreement.