Pricing Caetgory Discount

AID 1960707 · View on Simbli

Agenda Item

ii. Contract ~ Cooperative Agreement ~ Educational & Institutional Cooperative Services (E&I) Contract # CNR01496 ~ W.W. Grainger, Inc. ~ On-Site Services ~ Maintenance, Repair, and Operations (MRO) (Not to Exceed $10,000,000)

Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the DeKalb County Board of Education approve the use of the E&I Cooperative Contract # CNR01496 between DeKalb County School District (“DCSD”) and W.W. Grainger, Inc. for Maintenance Repair and Operations (MRO) Supplies and Other Services, in accordance with the E&I Contract # CNR01496 cooperative agreement not to exceed $10,000,000.
Why: Approval of the use of the E&I Cooperative Contract # CNR01496 with W.W. Grainger, Inc. is for W.W. Grainger, Inc. to provide an on-site storefront, including but not limited to parts, personnel, vehicles, and services to directly support the repair, maintenance, and servicing of DeKalb County School District (DCSD facilities, buildings, and structures. By utilizing this agreement, it will enhance parts availability, reduce customer wait times, and leverage the extensive expertise and logistical capabilities of a nationally recognized company. The District will also see more favorable discounts under this contract.
Details: The acquisition of on-site parts, supplies, and sublet services from Grainger for the DeKalb County School District’s Facilities Maintenance Department will be facilitated through the Cooperative agreement (E&I) Contract # CNR01496. This strategic framework meets DCSD'S ongoing needs for the conservation, repair, and maintenance of its extensive portfolio of facilities, ensuring that all buildings, infrastructure, and equipment are maintained in optimal condition. The use of this contract guarantees that essential systems, including HVAC, plumbing, electrical, and structural components, are preserved to the highest standards, minimizing the risk of unplanned disruptions and ensuring a safe, functional environment for students and staff. The initial contract term for the E&I cooperative contract with W. W. Grainger is from January 1, 2020, through December 31, 2024, with one (1) five (5) year renewal through December 31, 2029. The effective start date for the DCSD contract will be March 31, 2026, and ending March 30, 2027. Utilizing this agreement, DCSD will retain Grainger as the current supplier while also having the option to access goods and services provided by Grainger’s subsidiaries, partners, and vendors. The Division of Operations will continue utilizing this Cooperative Agreement until it is expired or renewed. If this option becomes unavailable, Division of Operations will issue its own Request for Proposals (RFP).
Financial impact: The funds will be allocated from various General Fund charge codes under the Business Services Department to support the maintenance and repair of DCSD facilities, buildings and structures.
Contact: Mr. Erick Hofstetter, Chief Operating Officer; Division of Operations, 678.676.1475
Mr. Keith Singleton, Director, Business Services Department, Division of Operations, 678.676.1422
Effective: Upon Board Approval
Status: Approved by the Office of Legal Affairs
                                                    Attachment A - Pricing
                                                    W.W. Grainger, Inc.
                                                       MRO Supplies
                                            Master Agreement Number CNR01496
                                                      January 01, 2020

Attachment A
Grainger Pricing and Category Discount Programs
This Agreement provides E&I Members access to all Grainger General Catalog Products and Services as found at
www.grainger.com, as well as all Products and Services available through Grainger Sourcing. Their product depth & breadth,
reliable service & support as well as their Value-Added Services are all available to members through this Agreement.
    1.   Market Basket Program – The Market Basket Program is based upon the most frequently purchased items from
         historic member purchases. The number of items in the Market Basket and pricing for each item will vary each year.
         E&I and Grainger will review the list annually and update the items and pricing upon mutual agreement. Market
         Basket Prices will be held firm during each contract year. The initial Market Basket pricing, effective January 01,
         2020, will remain firm until December 31, 2021, thereafter the products and pricing will be reviewed by the Parties
         annually to keep the Market Basket relevant and competitive. Market Basket price increase requests shall be submitted
         forty-five (45) days in advance of the effective date of the increase. The maximum allowable increase is not to exceed
         3% or NPPI on an aggregate annual basis for all Products and Services in the Market Basket, whichever is lower.
         Supplier is authorized to offer members enhanced pricing (deeper discounts, if available) on a case-by-case basis or
         under a Member Specific Agreement (“MSA”) and both shall be considered part of this Agreement. Market basket
         price reductions will be immediately passed on to E&I and its Members.
    2.   Member Specific Hot List Program (Hot List) – A Hot List may contain up to 1,000 items and pricing will be held
         firm during each contract year. Any additions/deletions and price changes shall be reviewed and mutually agreed
         upon between the Supplier and the Member on an annual basis. The pricing on Hot List items will be at least a half
         percent lower than the discount available for the item in its respective category (excluding Market Basket Items),
         unless the discounted price on the Hot List item is below Grainger’s cost for that item. If the discounted Hot List item
         is priced below Grainger’s cost, then Grainger and the Member will mutually agree upon a solution that may include
         adjusting the product price or identifying a substitute product. Each individual member, with a Hot List, has full
         approval authority over the pricing and content of their institution’s Hot List.
    3.   Category Discount Program - Category Discounts, listed below, shall remain firm for the life of this Agreement
         unless improved for the benefit of E&I members.
                                                     Category                                    Category
                     Product Category               Discount %         Product Category         Discount %
         Abrasives                                      5%     Material Handling                    15%
         Adhesives, Sealants and Tape                   5%     Motors                               19%
         Batteries                                      7%     Office Supplies                       5%
         Cleaning: Consumables                          22%    Outdoor Equipment                    12%
         Cleaning: Other                                22%    Paint, Equipment and Supplies        10%
         Electrical                                     23%    Plumbing: Other                      20%
         Electronics, Appliances, and Batteries         19%    Plumbing: Pipe, Valves, Fittings     20%
         Mfg: Fasteners                                 30%    Pneumatics                            5%
         Fleet and Vehicle Maintenance                  10%    Power Tools                          11%
         Furniture, Hospitaltity and Food Service       10%    Power Transmission                    5%
         Hand Tools                                     14%    Pumps                                10%
         Hardware                                       5%     Safety: Facility Safety              19%
         HVAC: Filters                                  43%    Safety: Footwear                     19%
         HVAC: Other                                    17%    Safety: People Safety                19%
         Hydraulics                                     5%     Security                             17%
         Lab Supplies                                   15%    Test Instruments                      7%
         Lighting                                       22%    Mfg. Welding                         15%
         Lubrication                                    5%     All other Categories                  5%
         Machining                                      10%




E&I Cooperative Services, Inc.                                                                                     Page 1 of 2
Master Agreement Number CNR01496                                                                                      V05/19
                                                     Attachment A - Pricing
                                                      W.W. Grainger, Inc.
                                                         MRO Supplies
                                              Master Agreement Number CNR01496
                                                        January 01, 2020

   4.   K-12 Enhanced Discount Program (available to all members) – Sub-Category Discounts, listed below, shall
        remain firm for the life of this Agreement unless improved for the benefit of E&I members.
                    Product Category                                       Subcategory                          Category Discount %
        Adhesives, Sealants and Tape                      Tapes                                                        15%
        Cleaning                                          Paper Products and Dispensers                                30%
        Cleaning                                          Trash Bags                                                   30%
        Cleaning                                          Receptacles and Containers                                   30%
        Cleaning                                          Cleaning Chemicals                                           30%
        Cleaning                                          Personal Care Products                                       30%
        Cleaning                                          Cleaning Equipment and Vacuum Cleaners                       30%
        Cleaning                                          Rags and Wipes                                               30%
        Cleaning                                          Wet Mops, Squeegees, and Buckets                             30%
        Cleaning                                          Brooms, Brushes, and Dust Pans                               30%
        Cleaning                                          Floor Care                                                   30%
        Cleaning                                          Dust Mops, Dusters, and Cleaning Pads                        30%
        Cleaning                                          Odor Control                                                 30%
        Cleaning                                          Janitorial Carts and Supply Holders                          30%
        Cleaning                                          Restroom Equipment                                           30%
        Cleaning                                          Furniture Care                                               30%
        Cleaning                                          Recycling Equipment                                          30%
        Electronics, Appliances, and Batteries            Batteries                                                    25%
        Furniture, Hospitality and Food Service           Hospitality Uniforms and Workwear                            17%
        Hand Tools                                        Wrenches                                                     25%
        Hand Tools                                        Pliers                                                       25%
        Hand Tools                                        Measuring and Layout Tools                                   25%
        Hand Tools                                        Sockets and Bits                                             25%
        Hand Tools                                        Screwdrivers and Nut Drivers                                 25%
        Hand Tools                                        Impact Sockets and Bits                                      25%
        Hand Tools                                        Clamps                                                       25%
        Hand Tools                                        Pullers and Separators                                       25%
        Hand Tools                                        Hand Saws and Sawhorses                                      25%
        Hand Tools                                        Files                                                        25%
        Hydraulics                                        Hydraulic Seals                                              10%
        Motors                                            HVAC Motors                                                  25%
        Motors                                            General Purpose AC Motors                                    25%
        Motors                                            Definite Purpose AC Motors                                   25%
        Motors                                            Motor Supplies                                               25%
        Motors                                            Speed Controls, Encoders and Soft Starts                     25%
        Motors                                            Pump Motors                                                  25%
        Motors                                            DC Motors                                                    25%
        Office Supplies                                   Boards and Easels                                            12%
        Plumbing                                          Water Coolers, Dispensers and Fountains                      32%
        Plumbing                                          Filtration                                                   32%
        Safety                                            Gloves and Hand Protection                                   30%
        Safety                                            Traffic Safety                                               26%
        Safety                                            Safety Storage                                               26%
        Safety                                            Gas Detection                                                26%
        Test Instruments                                  Electrical Power Testing                                     15%
        Test Instruments                                  Indoor Air Quality                                           15%
        Test Instruments                                  Electronic/Bench Testing                                     15%

   Deeper discounted pricing may be available to Members in the form of Customer Specific Pricing (CSP) as it relates to specific
   opportunities. Grainger’s ability to offer enhanced or additional discounts on product that exceed contract negotiated discounts is
   based on several factors such as, but not limited to, size of the opportunity, product mix, Supplier cost support, and inventory
   availability. Grainger will continue to work with E&I Members to leverage opportunities for additional Discounts.


E&I Cooperative Services, Inc.                                                                                              Page 2 of 2
Master Agreement Number CNR01496                                                                                               V05/19