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APPROVE A MOTION TO INCREASE FUNDING FOR NATIONAL IPA COOPERATIVE AGREEMENT FOR INFORMATION TECHNOLOGY SOLUTIONS AND SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Add funding to the National IPA (NIPA) Cooperative Agreement Contract Number 2018011-01 approved by Council on March 10, 2020, Motion 2020-03-10-1401 with CDW Government LLC (CDW-G) for a term which ends on February 28, 2025, for Information Technology Solutions and Services from Dell Marketing L.P. for a total estimated additional amount of $2,060,000 and totaling $14,560,000 for the term of the contract (Attachment A); and
2. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The City entered into a 3-year purchasing agreement with Dell Marketing L.P. through the State of California Department of General Services, California Multiple Award Schedule (CMAS). The CMAS contract was approved by Council in April 2022 for the amount of $ 2,060,000 and canceled by the vendor in July 2022 due to changes to the base price schedule.
To be able to continue purchasing Dell technology, staff recommends adding $2,060,000, totaling $14,560,000, to the National IPA Contract Number 2018011-01 with CDW-G for the term that ends on February 28, 2025, approved by Motion 2020-03-10-1401. The equipment needed to support the City is approximately $900,000 each year which includes computers, laptops, police vehicle mobile data computers (MDC), tablet computers, and other associated equipment.
DISCUSSION
Background
The Information Technology (IT) department supports more than 2,500 computers, printers, servers, and mobile devices on a large and complex wired and wireless secure computer data network. This provides users access to email, software applications (Word, Excel, Computer-Aided Dispatch, Records Management Systems, etc.), network drives, the Internet, private and public WiFi, VoIP phones, and all hosted services.
On April 5, 2022, City council approved Motion 2022-04-05-1204 for a 3-year purchasing agreement with Dell Marketing L.P. through CMAS. In August 2022, Dell informed the City that CMAS contract with Dell was canceled due to changes to the base price schedule. Staff evaluated other available purchase agreement options and recommends an amendment to the existing agreement with CDW-G to add funding for the additional Dell purchases in an amount previously approved for the canceled CMAS contract.
TABLE 1 - Amount Previously Approved for the Canceled CMAS Contract
|
Product Type |
FY 2022-23 |
FY 2023-24 |
FY 2024-25 |
Total |
|
Information Technology products and services from Dell Marketing L.P. |
$300,000 (amount remaining from $850,000) |
$870,000 |
$890,000 |
$2,060,000 |
The original contract with CDW-G was approved by Council Motion 2020-03-10-1401. The contract provides preferential pricing for computers, laptops, servers, software, and other technology-related equipment and parts under the terms established in the National IPA Cooperative Agreement, Contract Number 2018011-1. The first amendment was to add special terms and conditions, enabling future and reimbursement claims for COVID-related purchases of technology-related products. The second amendment was to extend the contract from February 28, 2023, to February 28, 2025, within the City Manager’s delegation of authority.
The proposed third amendment is to increase the not to exceed amount for Information Technology Solutions and Services from Dell Marketing L.P. for a total estimated additional amount of $2,060,000, totaling $14,560,000 for the term of the contract. This increase is needed because the cost of equipment was not previously included in the original budget for the CDW-G contract due to use of other contracts. Those contracts have now expired or been canceled, and Staff determined that the existing agreement with CDW-G is the most viable option.
NIPA secured highly competitive pricing through its large pool of 48,000 public agencies that combined their purchasing power. The cooperative agreement is with CDW-G, a company recognized as a premier reseller of software and hardware, including Dell hardware and services that are utilized by the City of Stockton.
The CDW-G Agreement was established through a competitive bid process conducted by NIPA. In 2020, staff recommended and the City’s Procurement Division approved the use of this participating agreement and the City’s cooperative purchase agreement, as it meets the criteria as an exception to the competitive bidding process by way of competitive pricing secured through NIPA, making it a valuable alternative to the standard bid requirement. The City has an ongoing business relationship with CDW-G that has benefited the City with discounted pricing and reliable timeliness of deliveries.
Present Situation
The City’s current investment in Dell desktops, laptops, MDCs, and tablets is estimated at a total replacement value in excess of $4,500,000. Scheduled replacements are based on the age and condition of the equipment and are monitored through the City’s asset inventory system. Equipment refresh rates average on a five-year life cycle, which means the City replaces, on average, approximately 20% or $900,000 per year.
Authorizing the use of this cooperative agreement will allow the City to procure products and services in a timely manner and to take advantage of the significant discounts in this agreement, as well as create efficiencies for staff in terms of fewer staff reports, contract routings, and requests for quotes, which impacts multiple departments across the City: IT Department, Procurement, Budget Office, City Attorney, Human Resources/Risk, City Manager’s Office, and City Clerk’s Office.
Staff recommends adding $2,060,000, totaling $14,560,000, to the NIPA Contract Number 2018011-01 with CDW-G for the term that ends on February 28, 2025.
FINANCIAL SUMMARY
The NIPA Cooperative Agreement will be utilized for Information Technology Solutions and Services for a term that ends on February 28, 2025, for a total estimated amount of $14,560,000.
All purchases made from this cooperative agreement will be funded through the Technology Internal Service Fund 510, project accounts, or department accounts and will not exceed budget authority approved through the annual budget process for FY 2022-23. Future annual costs will be included in the annual budget appropriation process. There is no impact to the General Fund.
Attachment A - Amendment #3 for the Cooperative Purchase Agreement with CDW-G