HomeMy WebLinkAboutContracts & Agreements_148A-2019VOLUME INCENTIVE ADDENDUM
MAINTENANCE REPAIR AND OPERATIONS (MRO) SUPPLIES AND RELATED SERVICES
Administered by the University of California (UC) on Behalf of the California Higher Education
Strategic Sourcing (CHESS) and other government agencies and non -profits
PURCHASING AGREEMENT
Contract Number 2018 000208
Fasten& Company
And
City of Redlands
1 Scope. This Supply Agreement covers the National IPA MRO Contract lead by the University of
California (UC) on behalf of the California Higher Education Strategic Sourcing (CHESS) and other
government agencies and non -profits for use by Higher Education and other governmental agencies and
non -profits
2 Will t
Order? (YIN
Participating Entity be issuing Fastenal a separate Contract Number of Blanket Purchase
If so What Contract Number will be issued
18,0Q 715.55"
3 Participation Fastenal is offering the incentives detailed below to any CHESS/National IPA members
utilizing the agreement who will meet a minimum spend expectation with Fastenal of $150,000 per year
in product purchases
MRO PRIMARY DISTRIIUTOR AWARD INCENTIVEPROGRAM°
Rebate {a
Sales Growth Inceiitive
E-commerce Incentive
Rebate
Product Incentive'
Discount
Fastenal Soluttonis
Incentive
Customized Market!.
Basket
1% paid on annual contract spend
5% paid on annual contract spend in excess of previous year's spend
with Fastenal
1% paid on all approved purchases through E -Commerce platform if E -
Commerce spend is at least 50% of total spend through program 2%
paid on all approved purchases through E -Commerce platform if E -
Commerce spend is at least 80% of total spend through program
Fastenal is offering up to a 10% additional discount on any product that
is purchased by the Participating Entity that is labeled as Green or
Exclusive Brand for Fastenal
3% paid on all product purchased through Fastenal in the first 12
months after signing and implementing a Fastenal Onsite Solution
Participating Entity can customize a market basket of up to 1,500 items
in addition to the UC/CHESS/NIPA market basket, which aligns with the
Participating Entity's unique volume products Market Baskets can be
Dynamic and may be reviewed on annual basis to customize based on
Participating Entity needs
All incentives and rebates can be negotiated by Participating Agency to be granted at the Discount level if
Participating Agency is unable to receive a rebate
Eligible annual activity includes aII product spend (gross product spend less product returns) and excludes
freight (if charged) and sales taxes (if charged) The benchmark for year 1 will be determined by the
eligible activity (irrespective of contract vehicle) for the previous contract year Purchasing entity will
receive an activity report to support all calculations Fastenal reserves the right to hold Growth Incentive
Program payments until open invoices for the subject contract year are paid Growth Incentive Program
payments shaII not automatically roll over in the event that Buyer continues to purchase product from
Seller upon expiration of the Agreement The Growth Incentive Program period terminates at the end of
the Agreement term and may only be extended by a wntten agreement signed by both parties In the event
that the underlying purchase Agreement is prematurely terminated by the Buyer, for any reason, Growth
Incentive Program credits accrued in the current contract year shall be forfeited by the Buyei The Growth
Incentives earned by the member will be paid annually within the first contract quarter following each
consecutive contract year in the form of a single disbursement
4 Start Date
5 Primary Contacts The primary government contact individuals for this Supply Agreement are
as follows (or their named successors)
Participating Entity•11
CA +-li 01 �t'� [ Clod .c
Fastenal
Fastenal Company
Signature._
Li 64Q9~ 7� 7
Signature
.z� /!ire.
Name PCLU ,(U J „ S.kY
Name•
Lee Hein
Title.Title
M4 �}
EVP of Sales
Address j
C�J��
i
S`���
Address.
2001 Theurer Blvd , Winona, MN 55987
Phone
(909) 798-7512
Phone
507-453-8205
E -Mail
pfoster@cityofredlands.org
E -Mail.
Ihem(&fastenal corn
Date
7J/ 6 /19
Date
8/2/2019
ATTEST•
t4'V --- `L wac
e Donaldson, City Clerk