HomeMy WebLinkAbout09. 12-104
MARCH 13, 2012 12-104 RESOLUTION
(CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE P-CARD SERVICES CONTRACT WITH JP MORGAN
CHASE BANK
INITIATED BY: PURCHASING
WHEREAS, the City of Oshkosh participates in an association of Wisconsin
government agencies, the Volume Acquisition & Large Uniform Expenditures (V.A.L.U.E.)
program; and
WHEREAS, V.A.L.U.E. conducted an RFP process to solicit financial organizations
to provide purchasing card services for governmental entities; and
WHEREAS, section 12-10 of the City’s municipal code provides that the City may
purchase pursuant to cooperative contracts with other governmental agencies.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized to enter into an appropriate
agreement, being deemed approved by their respective signatures, through Volume
Acquisition & Large Uniform Expenditures and administered through JPMorgan Chase, for
purchasing card services and said City officials are authorized and directed to take those
steps necessary to implement the terms and conditions of the Agreement so entered.
CITY HALL
215 Church Avenue
PO.Box 1130
Oshkosh 0
54903-1130
City of Oshkosh
OIHKQ/H
TO: Honorable Mayor and Members of the Common Council
FROM: Jon Urben,General Services Director
DATE: March 5, 2012
RE: PROCUREMENT CARD SERVICES CONTRACT-Purchasing Division
BACKGROUND
Since 2002 the City of Oshkosh has provided a procurement card (P-Card) program as a
purchasing tool for city employees to use for primarily low-dollar purchases of official city
business needs. The P-Card program has streamlined the Purchasing and Accounts Payable
functions of these purchases and has proven effective and efficient in making purchases within
delegated purchasing authority. While our P-Card transactions and amounts vary from year to
year, in our most current tracking period (March, 2010-February, 2011) we recorded
$1,262,053.00 in annual charge volume, that through the terms our service agreement, generated
a$14,262.20 rebate(1.13%) for the City of Oshkosh.
Our current P-Card program is administered through JPMorgan Chase (JPMC Bank), under a
contract negotiated through Volume Acquisition & Large Uniform Expenditures (V.A.L.U.E.), a
cooperative purchasing organization of Wisconsin government agencies of which the City of
Oshkosh is a participating member. With the current contract expiring March 1, 2012,
V.A.L.U.E. conducted an RFP process to solicit financial organizations to provide these services
for another five year term with an option for two,one-year renewals.
ANALYSIS
V.A.L.U.E.'s RFP review concluded the current P-card provider (JPMC Bank) ranked highest in
the scoring categories that included experience of staff, financial information, response to scope
of services, online system demonstration and rebate amount. As such V.A.L.U.E. has awarded
JPMC Bank the contract for this service. Purchasing's review of the contract concluded there
were a few minor updates to the current JPMC Bank P-Card program offerings and services.
These updates may provide additional benefits to our program,including:
• Fraud losses will not be deducted from rebates(agencies will no longer be responsible for,
nor have their rebates reduced, as a result of any third party fraud);
• P-Card reports from JPMC will be more timely(JPMC will now have a maximum time limit
of 10 business days to provide online report updates or agencies will receive larger rebate
amounts);
• Rebate parameters have increased(the average transaction size(ATS)will no longer apply to
rebate structure and rebates will be based on total purchases regardless of ATS).
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FISCAL IMPACT
The only fiscal impact of this contract is the annual rebate amount/percentage the City will
receive based upon our total annual P-Card charge volume.
RECOMMENDATION
Based on these new updates, the great customer service we have received in the past from JPMC
Bank and the results of V.A.L.U.E. Group's RFP for P-Card vendors, staff recommends the City
of Oshkosh approve this contract with JPMC Bank to provide our P-Card services.
Respectfully Submitted, Approved:
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Jon G.Urben, General Services Director Mark A. Rohloff, City Manager