Commissioners Court Meeting

Issue viewing agenda items? Click here to switch to the old format.

Return to the Minutes Page

Meeting Date:	08/22/2016
Voluntary Price Reduction Program
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to authorize the Purchasing Agent to implement a Voluntary Price Reduction Program and to further authorize the Purchasing Agent to negotiate a 10% price reduction on current and future unexecuted contracts that will impact the upcoming fiscal year 2016-2017; those vendors who participate in the program will be offered a One (1) year extension at the original bid prices subject to the terms and conditions of the program in accordance with the Local Government Code; Section 262.0305 (Modification of Award) and authorizing the County Judge to execute all relevant documents and any other matters incident thereto.

Issue: County is projecting a shortfall in oil and gas revenues and is actively implementing cost cutting measures county wide.

Solution: Introduce an additional cost cutting measure by approving a Voluntary Price Reduction program for Vendors to consider; in turn, assisting the County to help bring down expenses during FY 2016-2017. In return a one (1) year extension will be offered to participating vendors with unexecuted contracts and subject to the terms and conditions of the price reduction program.

Result: Potential savings to the County on annual purchases made through participating vendors.

Background:

County is projecting a shortfall in oil and gas revenues and is actively implementing cost cutting measures county wide. With the Courts approval the Purchasing Agent will Introduce a Voluntary Price Reduction program for Vendors to consider; in turn, assisting the County to help bring down expenses during FY 2016-2017. In return a one (1) year extension will be offered to participating vendors with unexecuted contracts and subject to the terms and conditions of the price reduction program. Potential savings to the County on annual purchases made through participating vendors.

All price reduction agreements will be returned to Court for final approval.

Previous Court Action:

None

Fiscal Impact

Budget Account Number:	TBD
Funding Source:	TBD
Balance:	TBD
Financial Impact:
A cost saving estimate will be provided once all participating vendors are identified.