REPORT TO COUNCIL
SUBJECT
Title
Authorization to Increase Purchase Order with D & D Learning Spaces for the Purchase, Delivery, Installation, and Removal of Office Furnishings for the City Offices Located at 851 Martin Avenue by up to $110,707 for a Revised Not-To-Exceed Amount of $367,828
Report
BACKGROUND
The Water & Sewer Utilities Department (Department) consists of approximately 70 employees stationed at various locations throughout the City, including 16 employees who have historically been assigned to City Hall, located at 1500 Warburton Avenue. On April 27, 2026, 20 employees were relocated to a new City office located at 851 Martin Avenue. The move is part of a broader City effort to reorganize staff workspaces and desk assignments, particularly for employees primarily stationed at City Hall, to accommodate organizational growth and improve the use of existing City facilities.
To support the relocation, the new office space at 851 Martin Avenue required appropriate furnishings, including workstations, seating, storage, conference and collaboration areas, and related office components. These standard furnishings were necessary to provide employees with functional and ergonomic workspaces and to support daily administrative and operational activities at the new location.
Public agencies commonly use cooperative purchasing agreements to procure office furnishings, fixtures, and related installation services because these agreements allow agencies to access competitively solicited contracts without conducting a separate solicitation for each purchase. Cooperative agreements are particularly useful for furniture procurements because office furnishings often involve standardized products, volume-based pricing, manufacturer discounts, space planning, delivery, installation, and warranty support. Using a cooperative purchasing agreement can reduce procurement timelines, leverage pricing obtained through larger competitive solicitations, and support consistency in products and services across public agency facilities.
The City authorizes the use of cooperative purchasing agreements pursuant to City Code Section 2.105.270(c), which allows the City to contract directly or indirectly with a vendor under a preestablished cooperative purchasing agreement, provided the agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bidding requirements. Consistent with this authority, the Department reviewed available cooperative purchasing agreements for office furnishings and identified OMNIA Partners Public Sector Contract R240108 and R221002 as appropriate procurement options for the furnishings needed at 851 Martin Avenue.
The Purchasing Division authorized use of the OMNIA Partners contracts after confirming that the underlying OMNIA solicitation met or exceeded the City’s solicitation requirements and verifying that the quoted pricing was consistent with the OMNIA Partners contract pricing and applicable discounts. The majority of the furnishings are being procured through OMNIA Partners Contract R240108, which provides a 55 percent discount from MSRP. Certain technology support and ergonomic accessories, including monitor arms and laptop trays, are being procured through OMNIA Partners Contract R221002, which provides a 62 percent discount from MSRP.
In April 2026, the Department authorized D&D Learning Spaces to provide the initial phase of office furnishing delivery and installation services for the office at 851 Martin Avenue (“Phase 1”). This phase consisted of installing furnishings required to address the immediate needs of staff moving into the new location, including furnishings for their offices and cubicles, as well as conference rooms, a breakroom, and kitchen areas, and removing broken and outdated furnishings that were not needed by incoming staff. The phased approach also allowed staff to evaluate the space after occupancy and determine whether any additional furnishings would be needed to support ongoing operations.
Phase 1 was completed at a pre-tax cost of $240,310. Because the City Council approval threshold is based on the pre-tax purchase amount, Phase 1 was below the Council approval threshold and therefore was authorized by the City Manager pursuant to City Code Section 2.105.300.
Following the move-in period and staff evaluation of the new space, Phase 2 will address remaining operational needs identified through use of the facility. Departments have assessed outstanding furniture, equipment, technology, and supplies, and this phase will address any gaps or adjustments identified after staff begins occupying and using the facility.
DISCUSSION
Following move-in and evaluation of remaining operational needs, staff obtained a second quote from D & D Learning Spaces for Phase 2 of furnishings. Phase 2 includes the delivery and installation of additional storage, office workspaces needed to support incoming employees, production-area furnishings, and other quality-of-workplace items. These items are intended to address operational needs identified after occupancy and support current and future staff assigned to 851 Martin Avenue. The Phase 2 pre-tax quote is $90,677.84.
Including taxes, the combined cost for Phases 1 and 2 is $353,389. Staff recommends applying a 15% contingency to Phase 2 costs to ensure sufficient funding is available if additional furnishings or associated fixtures are identified as necessary, or if selected items become unavailable during the procurement authorization process, requiring the Department to consider alternative products that may have different pricing.
The total cost for both phases, including applicable taxes and a 15% contingency on Phase 2, will not exceed $367,828. The table below summarizes the costs associated with this purchase.
|
Description |
Pre-Tax Amount |
Tax |
Total |
|
Phase 1 |
$240,310 |
$16,811 |
$257,121 |
|
Phase 2 |
$90,678 |
$5,590 |
$96,268 |
|
Subtotal |
$353,389 |
|
15% Contingency (Phase 2) |
N/A |
N/A |
$14,440 |
|
Total Not To Exceed Amount |
$367,828 |
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5), in that it is an administrative activity involving the purchase of office furnishings that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The completed Phase 1 purchase totaled $257,120.74, including tax. The Phase 2 quote totals $96,267.35, including tax. Staff recommends a 15 percent contingency on the Phase 2 amount to account for potential price fluctuations, resulting in a Phase 2 not-to-exceed amount of $110,707.45 and a cumulative not-to-exceed amount of $367,828.19 for Phases 1 and 2. Funding for the requested increase is available in existing appropriations.
Funding for the Phase 2 purchase is available in existing appropriations. The Department will split costs among the Water Utility Fund (45%), the Sewer Utility Fund (45%), and the Recycled Water Fund (10%).
COORDINATION
This report has been coordinated with the Finance Department, City Manager’s Office, and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, by email at clerk@santaclaraca.gov, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to increase the purchase order with D & D Learning Spaces for the purchase, delivery, installation, and removal of office furnishings for the City offices located at 851 Martin Avenue by up to $110,708 for a revised not-to-exceed amount of $367,828.
Staff
Reviewed by: John Ramirez, Director, Water & Sewer Utilities
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Phase 1 Purchase Order 32663
2. D & D Learning Spaces - Phase 1 Quote
3. D & D Learning Spaces - Phase 2 Quote
4. Omnia Partners Public Sector Contract R240108 Executive Summary and Pricing
5. Omnia Partners Public Sector Contract R221002 Executive Summary and Pricing