TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Jeff Brooner, Purchasing Manager
SUBJECT: Approve Agreement No. 260143B with Stericycle, Inc.
RECOMMENDATION
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Approve and authorize Agreement No. 260143B with Stericycle, Inc. with a term ending October 6, 2030, and a maximum compensation of $55,000 annually to perform confidential material shredding and disposal services. (Fiscal Impact: $55,000 Expense; General Fund; Budgeted; Discretionary)
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BACKGROUND
In 2010, Napa County entered into an agreement with Shred It (Shred It was subsequently purchased by Stericycle) as the result of a Request for Proposal (RFP) process. The contract has been amended twice, once in 2014 to change the renewal term to a month-to-month agreement and to increase service pricing, and again in 2017 to incorporate a one-time temporary change in the yearly maximum dollar amount specific to fiscal year 2017. The one-time temporary increase was due to a large number of paper document destruction projects county-wide. In 2018, as a cost saving measure, the County consolidated billing and service schedules, converting individual departmental accounts to accounts grouped by building, or buildings, to reduce the minimum service fees per location.
Although the 2014 amendment allows Stericycle to increase service pricing up to 7% per fiscal year, three such increases have been processed: once in 2019, once in 2020, and once in 2021.
When discussing a proposed price increase with Stericycle, we determined that a new agreement, with updated terms and protections, would be preferable to a third amendment to the original 2010 contract.
While the County did not conduct a formal solicitation process to award a new contract, a market analysis study was done and competing price quotations were obtained with Stericycle providing the lowest cost quote. Because an RFP process did not take place and the cumulative number of years under contract with Shred It ...
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