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Approve a 3 year contract with Pitney Bowes in an amount not to exceed $200,000, for the term May 14, 2019 through May 13, 2022, to provide pre-sort mailing services; and Authorize the General Services Director to sign the contract and any subsequent contract modifications and/or extensions not to exceed two additional 1 year periods and within the established budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a 3 year Contract with Pitney Bowes in an amount not to exceed $200,000 for the term May 14, 2019 through May 13, 2022 to provide pre-sort mailing services; and
2. Authorize the General Services Director to sign the contract and subsequent contract modifications, amendments, and extensions, not to exceed two additional 1 year periods and within the established budget.
SUMMARY/DISCUSSION:
The proposed contract (Attachment A) will provide the County a mail metering discount of $0.14 per piece of first class one ounce mail on outgoing United States Postal Service (USPS) mail. The retail rate of a first-class letter is $0.55. Through pre-sorting the County will pay a reduced rate of approximately 25% or $0.412 per one or two ounce(s) of first class mail. In FY2017/18, through contracting for pre-sort services, the County saved approximately $110,401 in postage expenses. See Attachment B for detailed cost analysis.
The Agreement with Pitney Bowes is the result of a competitive solicitation process conducted in the open marketplace. 365 firms were notified of the solicitation, 49 firms downloaded the documents and Pitney Bowes was the only contractor to submit a bid.
FINANCIAL IMPACT:
Expenses associated with this contract for the remainder of FY2018/19, and during the term of this contract, will be offset by funds budgeted for postage expenses in General Services Budg...
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