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APPROVE AN AMENDMENT TO THE STANDARD AGREEMENT FOR SUPPORT SERVICES THROUGH PERISCOPE HOLDINGS, INC. IN THE AMOUNT OF $150,000
recommended action
RECOMMENDATION
It is recommended that the City Council by motion, approve Amendment No. 2 to the Standard Agreement with Periscope Holdings, Inc., for support services to the Procurement Division within the Administrative Services Department in the amount of $150,000, bringing the total not-to-exceed contract amount to $525,000.
It is also recommended that the City Manager be authorized to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
Due to the continued increased demand on the Procurement Division and current Procurement Officer vacancy, the Administrative Services Department (ASD) is seeking Council approval to amend the existing agreement with Periscope Holdings, Inc., by increasing the not-to-exceed contract amount by $150,000, for a total not-to-exceed contract amount of $525,000 (Attachment A). The additional funding will allow ASD to maintain procurement support services through the end of the contract term, which expires December 31, 2024.
DISCUSSION
Background
The need for additional staffing support services for the Procurement Division was necessitated by the influx of $78 million in federal funds beginning in FY 2021-22 under the American Rescue Plan Act (ARPA). Due to the large number of vacancies in the Procurement Division, combined with the increased demand on procurement activities to obligate all ARPA funds by the federal deadline of December 31, 2024, Staff determined augmented procurement support services were necessary.
On October 17, 2023, Council approved Motion 2023-10-17-1201, authorizing the City Manager to execute an agreement in the amount of $250,000 with Periscope Holdings, Inc., for support services to ASD’s Procurement Division, for the term of November 1, 2023, through December 31, 2024 (Attachment B). The agreement was subsequently amended on September 3, 2024, to increase the contract amount by $125,000, for a revised not-to-exceed amount of $375,000 to continue providing procurement support services (Attachment C).
Present Situation
Although the Procurement Division has been able to fill most of its staff vacancies, the Procurement Officer position remains vacant. Recruitment efforts are currently underway to fill the position. Therefore, to maintain current service levels, Staff recommend an increase of $150,000 for the contract with Periscope Holdings, Inc., for procurement staffing support services through the end of the contract term (December 31, 2024), for a total not-to-exceed amount of $525,000.
FINANCIAL SUMMARY
The increased contract costs of $150,000 will be charged to the ARPA Procurement Public Sector Capacity project (SARP701), account 0010-156-650002-280-282-10-00-000-000-. Unobligated ARPA funds are available for transfer from other approved projects to SARP701. Resolution No. 2024-03-12-1503 authorizes the City Manager to reallocate funds among approved ARPA projects.
Council approval of the proposed contract amendment has no impact on the General Fund.
Attachment A - Amendment 2 to Agreement with Periscope Holdings, Inc.
Attachment B - Original Agreement with Periscope Holdings, Inc.
Attachment C - Amendment 1 to Agreement with Periscope Holdings, Inc.