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Home My WebLink AboutTrans 2013-07-09 Item 2C - Agreement - State Purchasing / WA State Master Contract Usage AgreementTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Transportation Committee FROM: Bob Giberson, Public Works Director BY: Pat Brodin, Operations Manager DATE: July 5, 2013 SUBJECT: Interlocal Agreement for State Purchasing WA State Master Contract Usage Agreement ISSUE Approve the Master Contract Usage Agreement (MCUA) with the State of Washington's Department of Enterprise Services to continue using state contracts as a purchasing resource. BACKGROUND Through the state's bid list, the City was able to access cooperative purchasing through state contracts. State government has undergone a reconfiguration resulting in an elimination of the General Administration Department, which administered the Washington State Purchasing Cooperative and state contracts. The Department of Enterprise Services was created to replace General Administration. In addition, the entire state contract purchasing cooperative has been revamped. At the end of June 2013, all membership in the state purchasing cooperative ended. If the City would like to continue using state contracts, which provide numerous purchasing efficiencies including the P -card system, the new Master Contract Usage Agreement will need to be in effect. FINANCIAL IMPACT Under the old state contract system, the City paid an annual fee to participate in the purchasing cooperative. With the new MCUA system, there is no cost to the City of Tukwila to use state contracts; with an annual savings of $2,000 to the 501 Equipment Rental Fund. RECOMMENDATION The Council is being asked to authorize the Mayor to sign the Master Contract Usage Agreement with the State of Washington Department of Enterprise Services and consider this item on the Consent Agenda of the July 15, 2013 Regular meeting. Attachments: Master Contract Usage Agreement Purchasing from Washington State Contracts Master Contracts Usage Agreement FAQ sheet Master Contracts Fee Change W:AShared Copy Only \TanyaAInfo Memo MCUA State Bid List 07- 05- 13.docx 70 Agreement Number: DES Use Only MASTER CONT CT USAGE AGREEMENT This Master Contract Usage Agreement (the "Agreement") is made pursuant to Chapter 39.34 of the Revised Code of Washington, and other applicable laws, by and between the state of Washington (the "State"), acting by and through the Department of Enterprise Services ("DES"), an agency of the State, and CITY OF TUKWILA Entity Name a state agency, or local or federal agency or entity, or public benefit nonprofit corporation, or any tribe located in the State ("Buyer"). 1. Purpose: The purpose of the Agreement is to establish the terms and conditions for when Buyer purchases or acquires goods and services for its direct use under contracts entered into by DES that permit such use ("Master Contracts"). 2. Duration: This Agreement will become effective on date of execution, and will continue in full force and effect until thirty (30) days following receipt of written notice from either party cancelling this Agreement. 3. Agreement Contact Information: Contact person to whom contract documents and related communications are to be mailed or faxed. Organization Name: CITY OF TUKWILA Tax Identification Number: 91-6001519 Unified Business Identifier Required for Non-Profit: Contact Name: PAT BRODIN Title: OPERATIONS MANAGER Address: 14000 INTERURBAN AVENUE SOUTH City: TUKWTLA State: WA Zi : 9816 Phone Number: (206) 433-1861 Email Address: PAT.BRODIN@TUKWLAWA.GOV 4. Cancellation of Agreement: This agreement can be terminated by either party upon 30 days written notice provided to DES at: Email to: mcua@des.wa.gov OR Mail to: WA Dept of Enterprise Services MCUA, Attn: Kris Gorgas P.O. Box 41409 Olympia, WA 98504-1409 5. Financial Responsibility: Buyer will deal directly with the Master Contract contractor, supplier, or service supplier ("Contractor") for any purchases Buyer makes pursuant to this Agreement and under a Master Contract. DES does not accept any responsibility, financial or otherwise, for any purchase Buyer makes under a Master Contract. 71 6. Compliance with Other Laws: Each of the parties will comply with all applicable federal, state, and local laws and regulations governing its own purchases. 7. Master Contract Audits: Buyer agrees to cooperate with DES, the Office of the State Auditor, federal officials, or any third party authorized by law, rule, regulation or contract, in any audit conducted by such party related to any Master Contract(s) that Buyer has made purchases from pursuant to this Agreement, including providing records related to any purchase from a Master Contract. In addition, Buyer agrees to provide, upon request from DES, documentation to confirm its eligibility to use Master Contracts. 8. Dispute Resolution: If there are any disputes between Buyer and a Contractor, Buyer agrees to (a) provide DES written notice of the nature of the dispute; and (b) unless otherwise provided in the Master Contract or as set forth below, work in good faith with the Contractor to resolve the dispute without the involvement of DES. DES may, upon request, review and assist in the resolution of a dispute, and if DES chooses to do so, the Buyer will cooperate with DES in that resolution process. In its sole discretion, DES may, but is not obligated to, upon written notice to Buyer, resolve disputes with a Contractor on behalf of Buyer and all other state, local, and federal agencies, local governments, and public benefit nonprofit corporations with similar or related disputes with such Contractor. 9. No Separate Entity: No separate legal or administrative entity is intended to be created by, or for the administration of, this Agreement. 10. Hold Harmless: Each party agrees to defend, indemnify, and hold the other party harmless from any claim arising from such party's sole negligent, reckless, or willful misconduct. 11. Entire Agreement: This Agreement sets forth the entire agreement between the parties, and supersedes any other prior written agreements between the parties, with respect to the subject matter hereof. IN WITNESS WHEREOF the parties having read this Agreement, agree to it in each and every particular, and have executed it below. APPROVED APPROVED WASHINGTON STATE DEPARTMENT OF ENTERPRISE SERVICES Entity Name CITY OF TUKWILA Entity Name Signature Signature Roselyn Marcus, Assistant Director Name/Title JIM HAGGERTON, MAYOR Name/Title Date Date 2 72 Washington State Department of rr4 Enterprise Services Purchasing from Washington State Contracts All membership to the Washington State Purchasing Cooperative (Co-op) will end as of June 30, 2013 This program will cease to function as of July 1, 2013 and be replaced by the Master Contracts Usage Agreement (MCUA), Customers who wish to make purchases off of Washington State Contracts need to have signed the following agreements, • For purchases made before July 1, 2013, an inter-local agreement or amendment for membership in the Washington State Purchasing Co-operative (Co-op). • For purchases made after July 1, 2013, a Master Contracts Usage Agreement (MCUA). Before July 1, 2013 After July 1, 2013 Purchasing Cooperative Members (Co-op) Master Contract Customers Inter-local agreement or amendment for membership in the Master Contracts Usage Agreement (MCUA) Washington State Purchasing Co-operative (Co-op) To use state contracts entities become Co-op members To use state contracts entities sign a Master Contracts Usage Agreement Members include • State Agencies • State Boards - State Agencies • State Commissions - State Boards • Higher Education Institutions - State Commissions • Offices of Separate Elected Officials - Higher Education Institutions • Offices of Separate Elected Offidals Entities that can join by agreement • Local Government Agencies • Local Government Agencies - Federal Agencies • Federal Agencies - Washington State Tribal Entities • Washington State Tribal Entities - Public Benefit Nonprofit Corporations • Public Benefit Nonprofit Corporations Entities that can join by agreement Membership fees apply No membership fee Typically an Inter-local or interagency agreement or amendment required Membership agreements periodically renewed or amended No termination date of agreement A Master Contracts Usage Agreement required More information • Information about the fee program • Print a Master Contract Usage Agreement ▪ Information about eligibility to use State Master Contracts • View a current list of Master Contract Customers • Find a searchable list of Master Contracts • View the Guidelines for Placing Orders from State Master Contracts • Find a list of Department of Enterprise Services contracts staff If you have questions, please contact us at (360) 407-2214 or MCUA@des.wa.gov 73 #4511iinqtan StiAel.:X.:,,,partibrprut. t:0 prise , r ices M a ste r Co tra cts LJS a eerncirt What is the IMOJA? l'he Master Contracts Usage Agreement M( A) is a one-tirrue agreeMent ruc'oessary Pr mr30 statiilory requirements alVowing giolifying organizations to use Washingtoru Stlate master GOraraCIS.. Cooperative purchasing throu..ugh state contracts provides organizations that have agreed to terms arid conditions the opportunity to save mifflons of do Oars anntolVy by pc oVing te„SOUrces to leverage Me nruarkeft throtigh volume discounts. Authorized cmganUzations are provided access to more than 700 contraf;ts for goods and services to meek aVV the business needs of thdr organizatkm at no cost. 0...e0;Vation ▪ VVAC 236A9-060 ▪ VVAC 200-310-010 ▪ 0-OF W 39.26.050 ▪ RCVV 43.19 Fi ow F11111Ch does 'y't cost"? 1"r here lis no ( rbnierthc, Master Conbacts Usage Agree rrnent. can siign as fU/5 Stake Ageedee • .E'ktakel3oards :^ State Commissions • Higher Education institutions • Offices of Separate Elected Offidals • 11.....ocaV Government Agencies • Fe,deraV Agencies • VVashington Stale 1"r r4 Entities • 09Ub6C E3eneffil. Nort-profil (PIBNP) Organzafion MO) 501QC)3 lax status that have Nod PBNP status wUlh the Secretary of State For !Hong informaon„go to httpliwww.sos.wa.govicorpsf. More informallion about pi:,IrcON':isOrtg ogreernervls wUlh PubVic EenfAt Nomprofft... RCW 09 c4 055 Moire .kftorrroaoul all7Kxd Pubfic (con eful Non-prom desVgnafiorr IRCw 24.03. 400. How do I join? rod c heck the signed agreement Vist. Vf you are not on this fist: iownVoad and print the Mash ,?,,,r Contracts Usage :Agreement (ACUA) F 00 014. and sign MCUA Scan and eumaii signed copy of MCUA do MCUAgdes..wa..1.gov or Maii signed copy to, DES MCUA, attuvi^bis Gorgas PO Box 41409 OVynlpia, WA 98504-1409 A luny -nra (mpy wiVi be scarirp?A and retlarued to you via ernalV, Vf you have questions,: Mea.im Can the Master Agreement Service 0::)Om 360.407-2214 or emall MCU.A@demwa.gov, What can I buy? eau ca xrchase a wide variety eflgoods and Setviices,. Contracts are or habie.. The foilowing are o few exampies of Ilhe Moot-Used contracts: Contact I nforrinab on VACUA PO Box 4"V ,409 OVyrnpia„ VVA 98504-1409 (36Q, 407-2214 C VA lllrswcqvc 74 VeINCes (heavy duty and passenger) • Copiers Office equipn'iont and supplies Purchasing card infant formula Rath° equipment. Fuel Pharmaceuticals Firoliture Pond Emisslon inspection serviCe lndustrial supplies Travel services LandSCaping equipment Paint (various kinds) Electronic monitoring services Electrical supplies Janitorial SeMCRS How do I make a purchase with a state contract? RPM, leCk the signed agreement list. Once you have a current signed MOJA. Use our contract search to trod a contract or learn about spedal purchaslng programs • kientify a Vendor on the contract. you wish to • COntad. the vendor citing the contrad. re.irriber yo wish to use, contract name and provide yopir ustonier number. hat '' have additional questions"? CaVII (360)407-2214 on email MCIJA@des.wa,gov • 0lfN3S0 redo once the Master Contracts Lhsaye Agreement when asking your question. Services The laming serviCeS are available as part of the IIVICLMV Training and events MEW; AcceSS to Aasker contra( its* • Access to the Weiitern States Contractirig Alliance (VC; ( A) • ,llcion Purchasing mailing list to Ira email broadcast • Purr hase Authority • Di E.?,rolsering arid Procurerrient Consiallation • OT Master Contracts • Tier D Contract Fee for „Janitorial 'et 0CeS • Contract C)versight Porlion of the Personnel Servims Charge • 0MiNBE 't.Sorri]e contracts crlay not he avaiiable for use by o V IViCLJA., See review indivic I cent act surntrary for who is moO r htmo to use the contract 75 Washington State Department of Enterprise Services Master Contracts Fee Change The consolidation of dozens of activities from five agencies into the Department of Enterprise Services (DES) provided an opportunity to streamline the rate structure for our services. In the summer of 2012, the Department conducted a review to confirm the kind of rate structure it should use to cover the costs of the services we provide. The review began with setting principles that guided DES in establishing rates, researching how other service organizations structure their rates, and developing alternatives. The rate principles set by DES are: • The rate is clear, easy to understand and easy to explain • Customers feel confident about the accuracy of the charges • Customers feel the rate structure will ensure they are paying a fair and equitable share of the total cost • Charges are predictable, consistent and timely • Rates should not create disincentives or barriers for the robust use of enterprise systems or services or enterprise policy when they would be in the state's best interest The current master contracting fee structure is very complicated, with some vendor fees that are set dollar amounts, and others are based on varying percentages of sales. Some fees are by agency allocation and some are agency transaction fees. Yet other fees charge local governments based on the amount of their annual budgets, To simplify this, DES is adopting a single vendor management fee model for all contracting activity. There are no variable percentages and tiers; it is fair and equitable for all contract users. State contract vendors will pay the state .74% of the total spent on contracts. Vendor management fees are a common practice in the public and private sector (19 other states currently have vendor management fees). The new fee model will take effect July 1, 2013. By moving from the current complicated and confusing model to a single management fee for contract use, DES is meeting the rate principles and agency mission to deliver innovative business solutions to meet the needs of those we serve. By removing barriers to contract use like the current complicated rates, more state agencies and local governments will utilize master contracts, increasing the potential sales pool for contract holders. DES is making the process of reporting sales consistent with the process most contract holders are currently familiar with, while making improvements to the system. Training will be provided to those not familiar with the online sales reporting system. For more information contact: Servando Patlan (360) 407 -9390 Servando.patlan @des.wa.gov Business Summary — March 2013 76