COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Employee and Public Services Department

DATE:

May 20, 2003

BOARD MEETING DATE:

June 10, 2003

TO:

Honorable Board of Supervisors

FROM:

Mary Welch, Director, Employee and Public Service
Neil Cullen, Director, Public Works

SUBJECT:

Resolution Approving a Contract with J & J Vending, Inc. for Food/Beverage Vending Machines Countywide

Recommendation

Adopt a resolution authorizing the Purchasing Agent to execute a contract with J & J Vending, Inc. to supply food/beverage vending machines at designated County facilities from July 1, 2003 through June 30, 2006, and for two additional one (1) year terms at the County's sole option.

Background

On June 17, 2002, the County's Executive Council discussed the advantages of identifying all vending machines located in County facilities and potentially consolidating the machines under one vendor for improved savings and efficiencies.

A survey was conducted in July and August, 2002 with the following results:

· There are approximately 50 vending machines at 35 different County facilities and locations.

· Most current locations and product offerings meet County needs.

· The majority of the vending machines do not utilize newer energy efficient technologies available in the industry.

· Individual departments currently use nine (9) different vendors countywide, with differing terms and conditions. Some vendors continue to operate even though their contracts expired long ago.

On October 17, 2002 the Executive Council discussed the survey results and authorized the Purchasing Division to initiate a request for proposal to (a) unify all vending machines into one competitively negotiated contract; (b) unify quality, price, and service; (c) ensure that all vending machines meet new energy efficiency requirements; and (d) require departments to receive County Manager approval before adding any new machines to ensure that County objectives are met.

The RFP for countywide vending machine service was issued, advertised, and fourteen potential contractors were notified. The County received four timely responses meeting the requirements of the RFP. Each was evaluated and the top three rated contractors were interviewed by the RFP Review Committee and business references were checked.

Discussion

The RFP Committee unanimously selected J & J Vending, Inc. for the following reasons:

· ability to meet County requirements, including energy conservation;

· response time and overall customer service;

· record of performance with other government entities

Additionally, J & J Vending, Inc. will pay the County a commission rate of five (5%) percent to twenty-two (22%) percent of the proceeds, depending on the individual product, to help offset Public Works' energy costs associated with operating the machines, as well as the Purchasing Division's management of the contract.

Upon approval of the agreement an implementation plan will be developed, which will include:

· canceling service provided by the nine current vendors

· instituting a transition plan for the orderly removal/installation of machines

· providing a food/beverage selection menu and pricing scheme satisfactory to department needs

· developing procedures for Purchasing to manage the contract and assist departments with service, user complaints, ongoing pricing and product review, and report analysis.

The contract terms will also be available to all County cities, towns, agencies and non-profit agencies that participate in the County's Cooperative Program.

Vision Alignment

Extending this contract supports vision points, number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain; number 21: understanding, supporting, and integrating the County vision into the delivery of services; and number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Fiscal Impact

The electrical and administrative costs associated with the vending machines will be offset by fees collected from J & J Vending, Inc. In addition, energy costs will be reduced by the installation of energy efficient vending machines. Departments will benefit by their employees having convenient access to food/beverages during the work day. There is no impact to the General Fund.

A form of resolution and agreement has been approved by County Counsel and J & J Vending, Inc., has executed the agreement.

cc: All Department/Division Directors