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4421
BUSINESS INTERIORS NORTHWEST
Furniture Purchase - Govt Ctr/Conf Ctr/Police/Fire
Econ Devel
LEG 12-1
03/25/2004
12/31/2007
02/15/2009
01/01/2009
Pricing based on City of Tacoma Agreement
PURCHASING AGREEMENT
This purchasing agreement is entered into this _'2_~_TM_ day of ___I~___AI~___M-_ ....... 2004, between
the City of Bremerton (as "Lead Agency") and Business Interiors Northwest ("Design Team".)
1. The City of Bremerton, a Washington State Charter City, is authorized and shall
receive the price, rights, terms, and benefits of the agreement between the City of
Tacoma and Business Interiors Northwest in effect from January 1, 2003 through
December 31~t 2007. A copy thereof is attached as Attachment A and incorporated
herein. This agreement is contingent upon the City awarding all new furniture
purchases for the City Hall in the Government Center, the Kitsap Conference Center,
the new Police/Court Facility and the new Fire Department to the Design Team.
2. The City of Bremerton shall receive Tier 2 discounting on the City of Tacoma contract
for all purchases starting at $0 for all tiered discounts listed on Schedule A.
3. Business Interiors Northwest shall provide furniture and system design services for the
City of Bremerton spaces and public space on the Fifth and Sixth Floor of the new
Government Center for a sum of Four Thousand One Hundred Fifty Dollars. Lump
sum fees for furniture design work on the new City of Bremerton Fire Station and the
Police / Court Building will be mutually agreed upon hereafter.
4. Business Interiors Northwest shall provide delivery, and installation of furniture of all
new furniture for the City of Bremerton per the plans for the 5m and 6m floor of the
Government Center for the lump sum of $9,000 less 5% of the sale price of all
ancillary furniture purchases by the City. This lump sum shall apply excepting only
that additional delivery and installation fees at the rate of $40.00 per hour may be
applied in the event the City of Bremerton purchases extraordinary quantities of
furniture for the designed space, and other site conditions that prevent and or delay
delivery and installation, with said extraordinary spaces and purchases agreed upon in
advance.
5. Purchases by the City of Bremerton of ancillary furniture shall be cost plus 25% per the
City of Tacoma contract and will include delivery and installation up to 5% of the total
ancillary purchases.
6. Storage charges shall be at no charge for the first 30 days after receipt of product.
Business Interiors Northwest will be responsible for managing the shipping schedule to
ensure that no products would be stored for more than 30 days (with the exception of
delayed construction or a natural disaster.)
PAGE 1 of 2
PURCHASING AGREEMENT
7. Out of Scope services will be presented in the form of a change order with mutually
agreed upon costs prior to work being performed.
8. Venue n the event of litigation referenced on paragraph II. 1 of the Tacoma contract,
shall be Kitsap County Superior Court.
LEAD AGENCY DESIGN TEAM
C~ BUSINESS INTERIORS NORTHWEST
Cary Bozeman Rich 1.ach ~ ~.
MAYOR CHIEF EXECUTIVE OFFICER
PAGE 2 of 2
3628 South 35th Street
Tacoma, Washington 98409-3192
TACOMA POWER
TACOMA PUBLIC UTILITIES
Januaw 16,2004
City of Bremerton
Mr. Gary Sexton
Director, Economic Development
232 Washington
Bremerton, WA 98337
Dear Mr. Sexton:
This letter is to authorize the City of Bremerton, as a political subdivision within the State of
Washington, the use of the pricing discounts contained in the Purchasing Agreement between
the City of Tacoma and Business Interiors Northwest that is in effect from January 1, 2003
through December 31, 2007. This contract was awarded by the Public Utility Board based on
the fact that the original contract was the result of a competitive selection process and the
favorable discounts in the new contract were unchanged from the original contract. Enclosed is
an internal memo further explaining the recommendation for the contract award, which was
approved by the Board on June 26, 2002. Aisc enclosed is a copy of the Purchasing
Agreement.
Please call me at 2531502-8226 if you have any questions.
Very truly yours,
Rick Herrmann
Assistant Generation Manager
Generation
RH:rlm Bremerton Shared Agrmt.doc
Enclosures
C: Don King, BINW
U9723 #2
Rick Herrmann
DATE: June 11,2002 TACOPIA POWER
TACOMA PUILIc UTILITIES
TO: Mark Crisson, Director of Utilities ~//"'~ .~_~.~
FROM: Steven J. Klein, Power Superintendent
SUBJECT: Contract with Business Interiors Northwest
RECOMMENDATION: Tacoma Power requests the Public Utility Board's approval to waive
formal bidding and award a contract to Business Interiors Nodhwest, Tacoma, Washington, for
the supply of Herman Miller panel system furniture and associated products from January 1,
2003, through December 31, 2007, for an estimated amount of $750,000, plus applicable sales
tax.
BACKGROUND: The Public Utility Board adopted Resolution U-9031 on December 14, 1994,
awarding a contract to Business Interiors Northwest (BINW) for the supply and installation of
Herman Miller panel system fumiture and associated products and services. The contract was
the result of a competitive selection process to determine the new City-wide standard for panel
system fumiture. The contract total is now at $2,150,000, which has been used to fund a
number of major remodeling projects and new installations over the years, including remodeling
of most of the Administration Building and fumishing the Southwest Annex for Click! staff. The
current contract will expire December 31, 2002..
Herman Miller panel system furniture has become the City's standard for such furniture. The
system is easy to install and recenfigure, has good capabilities for distribution of power and
communications, and is very durable. Standardization has allowed a quick response to
requests for workstation additions or reconfigurations, since an inventory of spare parts can be
maintained.
The proposed new 5-year contract is for supply of furniture only, since most new system
furniture projects are now designed and installed with in-house staff. The contract provides the
same discounts as were in the odginal competitively bid contract for all products included in the
odginal contract. The basic discount is 69.2 percent from list price for the most ordered Herman
Miller panel system components. There is a discount rate of 72.09 percent for single purchases
amounting to over $125,595. These are very favorable discounts and our review of other
contracts has confirmed that they are the best available. The cities of Lakewood, Gig Harbor,
and Des Moines and Lakehaven Utility District have requested the use of our contract for
Herman Miller purchases from Business Interiors Northwest. The Herman Miller discounts on
their national contract are only available to govemmental agencies and range from 65 percent to
68 percent, compared to the 69.2 percent to 72.09 percent in our current contract.
Business Interiors Northwest is a Tacoma firm and the only Herman Miller Certified Network
dealer in Washington state, which assures consistent quality and performance of products and
services. BINW offers a vadety of support services for the Herman Miller product including
workstation design, installation, warehousing, repair/maintenance including factory authorized
warranty repair, and refurbishing. "
1
Mark Crisson, Dire~orof Utilities
June 11, 2002
Page 2
This new contract is recommended without re-bidding because Business Interiors Northwest
and Herman Miller were originally selected through a competitive process and they are
essentially sole source for the City standard for panel system furniture. This is basically a
requirements contract without firm quantities to bid. Since the original discount rates were
negotiated with Herman Miller involvement and discount rates typically increase as volume of
purchase increases, we could not be expected to improve the discount rate established during
the original competitive process in 1994; our anticipated new furniture requirements are
significantly less than they were when the original contract was bid, with no major remodels
proposed in the 2003/2004 budget. However, we do anticipate some new furniture purchases
for recenfigurations and potential remodels occurring during the proposed 5-year contract
period.
Our experiences with the Business Interiors Northwest and Herman Miller products have been
very favorable.
BUDGET AUTHORIZATION: Funds are being proposed in the 2003/2004 proposed Tacoma
Power budget and future purchases are dependent on availability of budgeted funds.
We request your approval to submit this matter to the Public Utility Board for its consideration.
AP PROy..EI~
Purchasing Agreement
between
City of Tacoma
3628 South 35t' Street
Tacoma, WA 98409-3'192
and
Business Interiors Northwest
710 Pacific Avenue
Tacoma, WA 98402
~ EfYective Date
~/~xp!~tio n Date
Contract Number
Table of Contents
Purchasin.q ARreement for Products
between
City of Tacoma
and
Business Interiors Northwest
1. Scope of Agreement
2. Pricing
3. Order Procedures
4. Order Changes and Cancellation
5. Storage and Postponement
6. Packaging and Shipment
7. Invoicing and Payment
8. Returns
9. Warranty
10. Disputes
1 1. Sole Venue
12. Federal, State, and Municipal Regulations
13. Indemnification
14. Miscellaneous
Schedule A - Discounts
Attachment A - Herman Miller Warranty
City of Tacoma
and
Business Interiors Northwest
Purchasing Agreement for Products
This Agreement ("Agreement") expresses the terms and conditions for the supply of
office furniture products ("Products") between Business Interiors Northwest ("Seller"),
710 Pacific Avenue, Tacoma, Washington, and the City of Tacoma ("Buyer"). This
Agreement is in effect for a five (5) year timeframe, commencing on January 1,2003 and
concluding December 31, 2007.
In consideration of the mutual promises and upon the conditions contained within this
Agreement, the parties agree:
1. Scope of Agreement
1.1. The terms of this Agreement apply to purchases of Products for which Seller is
an authorized dealer. This includes, but is not limited to, Products manufactured
by Herman Miller, Inc. ("Herman Miller") and it's subsidiaries, including but not
limited to Meridian incorporated ("Meridian"). Seller is a Certified dealer for
Herman Miller.
1.2. The terms of this Agreement are offered to all departments, utilities, and
divisions of Buyer. Upon mutual written consent, the terms of this Agreement
may be offered to other political subdivisions within the State of Washington.
1.3. The terms of this Agreement apply only to purchases for delivery within the
State of Washington counties of Pierce, Lewis, King, Kitsap, Mason, and
Snohomish. Terms and discounts for purchases for delivery outside of these
counties may be specified in separate schedules or by Addendum.
1.4. No services are offered in this Agreement.
1.5. Products purchased under this Agreement are for Buyer's own use and are not
intended for resale.
2. Pricing
2.1. Prices for Products manufactured by Herman Miller and Meridian are
determined by applying the appropriate discounts to the manufacturers
published list prices in effect at the time Seller receives Buyer's completed
purchase order. Discounts are listed in Schedule A.
2.2. Products not listed in Schedule A, and Products not manufactured by Herman
Miller or its subsidiaries will be sold to Buyer at Seller's cost plus 25%.
2.3. If Buyer's requested shipping date is more than six months from the date that
Buyer's order is received, Buyer's orders may be re-priced using the list prices in
effect at time of shipment.
2.4. Seller agrees to give Buyer 30 days' prior written notice of any increase in
published list prices for Products described in Schedule A.
3. Order Procedures
3.1. Seller will provide a written quotation for all Products being purchased by Buyer.
An approved copy of Seller's written quotation, and a completed purchase order
both signed by an employee of Buyer are required prior to Seller placing orders
with manufacturer(s). Buyers purchase orders should be made out to: Business
Interiors Northwest, 710 Pacific Avenue, Tacoma, WA 98402
3.2. Seller will acknowledge all purchase orders and will confirm scheduled delivery
date.
3.3. If Buyer orders Products that incorporate Buyer's own fabric or other materials
supplied by Buyer, those orders are subject to procedures and conditions
regarding those products that are stated in manufacturer's published price
catalogues. A copy of such procedures and/or conditions will be provided to
Buyer upon request.
3.4. Buyer may request expedited shipment on its purchase order. Expedited
shipment will be subject to manufacturer's lead time programs in effect at time of
order. Manufacturing lead times may vary. Average lead times are 10 working
days for expedited lead time programs, and 4-6 weeks for standard. Lead times
are calculated from the date the manufacturer receives a completed purchase
order from Seller.
4. Order Changes and Cancellation
4.1. Buyer may make a written request at any time to change an order or to cancel
part or all of an order.
4.2. Orders for Products placed on manufacturer's expedited shipment programs are
entered for immediate shipment or production and no changes or cancellations
to those orders may be made.
4.3. Any and all changes or cancellations will be subject to manufacturer(s) policies
and conditions in effect at time of order. Seller will advise Buyer within 96 hours
of receiving written request for change/cancellation as to amount of charges, if
any, resulting from manufacturer's policies and conditions.
5. Storage and Postponement
5.1. If Buyer is not ready to receive Products on the scheduled delivery date, Seller
will store Products for up to 30 days at no additional cost to Buyer subject to
order size and space available in Seller's warehouse. After 30 days a storage
charge of $.94 per square foot will be paid by Buyer. If order size or space
available in Seller's warehouse causes third party storage to be required, Buyer
is responsible for storage preparation charges, handling charges, and any other
expenses relating to the storage of Products that are incurred by Seller.
5.2. Products may be received either at Seller's warehouse facility or Buyer's job
site. If Products are received at Seller's warehouse, charges for delivery to
Buyer's job site are listed in Schedule A.
6. Packaging and Shipment
6.1. Manufacturers use a variety of packaging methods for shipment of Products,
including but not limited to cartons, blankets, bulk, and poly-bagging. If Buyer
requests special packaging or shipping methods, it is responsible for any extra
costs that result.
6.2. Manufacturer's shipping terms and conditions in effect at time of order will apply
to all orders. Many manufacturers, including Herman Miller and Meridian,
prepay freight within the continental United States. Additional freight charges
that may apply resulting from manufacturers shipping terms and conditions will
be included in Seller's quotation for Products.
6.3. Claims for transportation damage will be the responsibility of the Seller and
damaged Products will be repaired or replaced to the satisfaction of Buyer. For
shipments direct to Buyer's location and where Buyer receives the Products,
Buyer is responsible for transportation damage claims.
7. Invoicing and Payment
7.1. Orders are invoiced at time of receipt of Products at Seller's warehouse, or
Buyer's job site if shipped direct from manufacturer.
7.2. Payment is due 10 days from invoice date for all orders. Buyer may withhold
10% of net cost of Products for orders shipped to Seller's warehouse pending
satisfactory delivery to Buyer's job site.
7.3. Buyer agrees to pay a finance charge of 1.0% per month on all delinquent
accounts.
8. Returns
8.1. Products may be returned only with Seller's prior written approval.
9. Warranties
9.1. Manufacturer's warranty in effect at time of delivery will apply to all Products.
Herman Miller and Meridian have a 12 year warranty, including labor, and it is
described in Attachment A.
9.2. Buyer may establish that a warranty claim is within the warranty period by
producing the invoice for Products or other reasonably satisfactory evidence.
10. Disputes
10.1. In the event of a dispute, including collection matters, between the parties
hereto, the substantially prevailing part in litigation shall be entitled to
reasonable attorney fees, costs and expenses.
11. Sole Venue
11.1. Parties agree and stipulate that in the event any litigation should occur
concerning or adsing out of this Agreement, the sole venue of any legal action
shall be the Pierce County Court of the State of Washington and interpretation of
the terms of the Agreement shall be governed by the laws of the State of
Washington.
12. Federal, State and Municipal Regulations
12.1. All federal, state, municipal and/or local regulations shall be satisfied in
the performance of all portions of this Agreement. Seller shall be solely
responsible for all violations of the law from any cause in connection with
product sold under this Agreement.
13. Indemnification
13.1. Seller agrees to indemnify and hold Buyer, its elected officials, officers,
employees, agents, and volunteers harmless from any and all claims, demands,
losses, actions and liabilities (including costs and all attorney fees) to or by any
and all persons or entities, including, without limitation, their respective agents,
licensees, or representatives, arising from, resulting from, or connected with this
Agreement to the extent caused by the negligent acts, errors or omissions of the
Seller, its partners, shareholders, agents, employees, or by the Seller's breach
of this Agreement.
14. Miscellaneous
14.1. Either party may terminate this Agreement, without cause, with 90 days
prior written notice to the other party. Any purchase order placed before the
termination date is governed by this Agreement either until the order is cancelled
or until delivery of Products has been completed and payment from Buyer has
been received.
14.2. The parties obligations that are intended by their nature to continue
beyond the term of the Agreement survive the termination or expiration of the
Agreement.
14.3. This Agreement may be modified or extended only by written amendment
that is signed by authorized representatives of both parties.
14.4. This Agreement is binding on the parties and their respective successors
and assignees. Neither party may assign this Agreement, nor any portion of this
Agreement, without the written consent of the other party and that consent must
not be unreasonably withheld.
IN ACKNOWLEDGEMENT OF AGREEMENT, the parties have had this Agreement
signed by their duly authorized officers:
City of Tacoma Business Interiors Northwest
Dire~:'to~'of Utilities ~i
Approved as to form &.legality:
P.~/"App rove~..~ ~...availability ~ 's~~ of funds:
Issue Date Issue Number
Schedule A
Product Discounts
Systems Seating Filing, Storage, List $ Tier Discount off list
Freestanding
Action Office 1, AO2, A Ser~es Pedestals, $0 to $450,000 69.2%
Prospects, G Series Pedestals Over $450,000 72.09%
Ethospace,
Energy Distribution,
Lighting, Textiles
Ext~edited Lead Time 65%
Aeron, Ambi, Resolve $0 & Over 50%
Reaction, Aside,
Avian, Caper
Expedited Lead Time $0 & Over 48%
Equa, Ergon, $0 & Over 52%
Limedck
Expedited Lead Time $0 & Over 50%
Arrio $0 & Over 67.5%
Expedited Lead Ttme Not available
Q Systems Herman Miller Tables $0 & Over 65%
Expedited Lead Time $0 & Over 62.5%
Passage, Meddian $0 & Over 50.5%
Pedestals, Meddian
Lateral Files, Radian
Expedited Lead T~me $0 & Over 48%
Herman Miller Lateral $0 & Over 48.2%
Files, G Series Files
Expedited Lead Time $0 & Over 48.2%
Proper Chairs Kiva Collection $0 to $450,000 45%
Over $450,000 46%
Expedited Lead Tlme $0 & Over 42%
*Any Herman Miller Cost Plus 25%
Products not listed
above and all non-
Hen'nan Miller
Products
Delivery Charges
Delivery of Products Normal Hours 8A to 5P, M-F $40 per hour
Overtime Hours $52.80 per hour