Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval to Waive the Competitive Bid Process and Utilize Cooperative Procurement Contracts; Sourcewell Contract #121923, National IPA Contracts with Cobb County, GA Contract# 23-6692-02, Monterey County Office of Education CALSAVE Contract # 538902, Omnia Mesa Contract # 2024056-01-GOV with CDW-G in a not to Exceed Amount of $500,000 in Fiscal Year 2025/2026
REPORT IN BRIEF
Considers approving to waive the competitive bid process and utilize cooperative procurement contracts; Sourcewell Contract #121923, National IPA contracts with Cobb County, GA Contract# 23-6692-02, Monterey County Office of Education CALSAVE Contract # 538902, Omnia Mesa Contract # 2024056-01-GOV with CDW-G in a not to Exceed Amount of $500,000 in Fiscal Year 2025/2026.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving to waive the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code due to cooperative purchasing; and,
B. Approving the use of Sourcewell Contract #121923; and,
C. Approving the use of National IPA contracts with Cobb County, GA contract# 23-6692-02; and,
D. Approving the use of Monterey County Office of Education CALSAVE contract #CALSAVE 538902; and,
E. Approving the use of Omnia Mesa Contract # 2024056-01-GOV; and,
F. Authorizing the City Manager to execute the necessary documents; and,
G. Authorizing the City Manager to execute the necessary documents for future contract amendments in motion B though E and contingent upon approval as to form by the City Attorney; and,
H. Authorizing the purchase of $500,000 of technology solutions with contracts in motion B through E.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions as specified by the City Council; or,
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the FY 25/26 Adopted Budget.
DISCUSSION
The City Information Technology Department procures a significant volume of technology-related goods and services each fiscal year to support the operational needs of all departments. These items include ruggedized computing devices, monitors, software licenses, cabling, peripheral, accessories and more. CDW-G has historically served as a key vendor under various publicly solicited cooperative purchasing agreements.
To secure favorable pricing and streamline the acquisition process, the City leverages multiple cooperative procurement contracts competitively solicited by other government agencies. These agreements provide access to thousands of technology items listed in the contracts. Staff may utilize more than one contract per transaction to ensure best-value pricing.
These contracts do not require exclusive use of CDW-G. Competitive price quotes will continue to be solicited, and the City will procure from alternative vendors if lower costs are available. These cooperative agreements, however, provide flexibility and purchasing power, often resulting in lower unit costs through aggregated public sector pricing.
City Council previously authorized the use of the Sourcewell Contract #121923 and the National IPA contract with Cobb County, GA Contract #23-6692-02 in the prior fiscal year. These agreements remain valid and continue to provide cost-effective purchasing channels for technology needs. At this time, staff seeks additional authorization to utilize two new competitively solicited cooperative contracts: (1) Monterey County Office of Education CALSAVE Contract 538902 and (2) Omnia Mesa Contract #2024056-01-GOV. Approval of these additional contracts will expand the City's options and further enhance its ability to obtain competitive pricing through cooperative purchasing.
Use of these contracts complies with Section 3.04.210 of the Merced Municipal Code, which permits exemption from formal bidding when utilizing contracts awarded through a competitive process by other public agencies. Without this authorization, the City would likely exceed the department’s delegated procurement authority early in the fiscal year, limiting the ability to fulfill operational requirements.
The Information Technology Department therefore requests Council authorization to waive competitive bidding requirements and continue leveraging these cooperative procurement contracts. This approach supports cost-effective and compliant purchasing practices.
IMPACT ON CITY RESOURCES
Last fiscal year Council approved $500,000 of spending authority with CDW-G. The purchases account for spending across all City departments. As of the writing of this admin report it is anticipated to expend $425,000 in fiscal 24/25. It would be prudent to authorize the expenditure up to $500,000 in fiscal year 2025/2026 to CDW-G based upon the previous expenditures and authorization of last fiscal year. For any expenditure above this threshold, staff will come back to Council for additional expenditure authority. This authorization does not encumber or expend any funds, it only grants the authority to expend funds if the City needs to purchase goods. If the City expends below this threshold amount, no funds will be lost.
Funding is included in FY25-26 proposed budget and will be contingent upon Council approval of the budget.
ATTACHMENTS
1. Sourcewell Contract #121923
2. National IPA contracts with Cobb County, GA contract 23-6692-02
3. Monterey County Office of Education CALSAVE 538902
4. Omnia Mesa 2024056-01-GOV