Title
Resolution to Approve Cooperative Purchasing Interlocal Contract with Houston-Galveston Area Council (H-GAC)
Memorandum
Cooperative purchasing allows governmental entities to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing.
The Houston-Galveston Area Council (H-GAC) is a region-wide association of local governments in Texas that makes their competitively bid contracts available to other government agencies throughout the United States.
There are eighty-two (82) governmental entities and instrumentalities within Michigan that are participating members in the H-GAC Buy cooperative purchasing program.
Approval of the Interlocal Contract authorizing participation in H-GAC Buy does not obligate the City to make any purchases and is supported through administrative fees assessed to participating contractors. The H-GAC Buy program is very similar to other cooperative purchasing programs (e.g. State of Michigan MI Deal, CoPro+, National IPA, Oakland County) that the City participates in and access to the H-GAC Buy program will simply provide the City with another tool in its purchasing toolbox.
Staff
Prepared by: Colin Spencer, Purchasing Manager
Reviewed by: Matthew Horning, City Treasurer and Interim CFO
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, Section 1:316(2) of the Ann Arbor City Code authorizes City participation in cooperative purchasing arraignments with other governmental units or public agencies;
Whereas, The Houston-Galveston Area Council (H-GAC) is a political subdivision with a cooperative purchasing program that assists public agencies in reducing the cost of purchased goods by pooling the purchasing power of public agencies nationwide by competitively soliciting contracts for quality products and services and allowing other participating public agencies to purchase supplies, equipment, services and materials from these contracts on the terms and conditions set forth in said contracts;
Whereas, The City of Ann Arbor, as a Michigan municipal corporation, qualifies as an eligible entity under the Texas Local Government Code for the purposes of cooperative purchase of goods and services;
Whereas, H-GAC requires completion of a Interlocal Contract for Cooperative Purchasing to formalize the City’s participation in the H-GAC Buy program;
Whereas, The City’s Purchasing Manager has recommended to the City Administrator and City Council that the City of Ann Arbor become a participating public agency in the Houston-Galveston Area Council’s H-GAC Buy program; and
Whereas, The City Council has determined it to be in the best interest of the City of Ann Arbor to enter into an Interlocal Contract for Cooperative Purchasing agreement;
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution, including execution on behalf of the City of H-GAC Buy Interlocal Contract for Cooperative Purchase after its approval as to form by the City Attorney.