Memorandum

City of Lawrence

City Clerk’s Office

TO:	David L. Corliss, City Manager
FROM:	Jonathan Douglass, City Clerk/Assistant to the City Manager
CC:	Aland Landis, Purchasing Specialist
DATE:	August 3, 2011
RE:	Recommendation to award contract for mailing services

Over six years ago, the City of Lawrence and Douglas County solicited proposals to outsource mail services. By using a mailing service the city is able to access lower meter rates due to the volume discounts that the vendor receives from the United States Postal Service.

Our current contract expired and has been on a month to month basis during the Request for Proposals process. The City and County asked other agencies if they wanted to participate in a cooperative bid to increase the volumes. The University of Kansas, Lawrence Memorial Hospital, Bert Nash Community Mental Health Center, Lawrence-Douglas County Health Department, and Douglas County Visiting Nurses joined the City and County in a joint bid. The terms of this contract would be for one year with the option to renew annually for an additional four years, and includes a six month trial period. The only increase allowable over the term of the contract will be documented rate changes made by the United States Postal Service.

Proposals were received from Stampede Mailing Services, Strahm Automation and Mailing Services, and KC Presort. Staff from each participating agency served on the evaluation committee. The overall consensus was that Stampede provided a more competitive proposal, and offered an easier transition as three agencies (City, County, and KU) are currently under a contract with Stampede. The final costs negotiated with Stampede are also lower than the rates paid under the current contract.   

ACTION:       Authorize the city manager to enter into a contract with Stampede Mailing Services for outsourced mailing services.