Report Prepared by: Aarin Garrison, Systems Engineer II
Title
SUBJECT: Approval to Waive the Competitive Bidding Process to Allow for the Cooperative Purchase with a Competitively Bid Contract; (NASPO ValuePoint Software VAR # ADSPO16-130652 with CDW-G and Authorization to Increase the not to Exceed Spending Authority to CDW-G from $180,000 to $300,000 in Fiscal Year 2021/2022
REPORT IN BRIEF
Considers waiving the competitive bidding process to allow for the cooperative purchase with a competitively bid contract; (NASPO ValuePoint Software VAR # ADSPO16-130652 with CDW-G and increasing the not to exceed spending authority to CDW-G from $180,000 to $300,000 in Fiscal Year 2021/2022.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving to waive the competitive bidding requirements for cooperative purchasing of software as stated in Section 3.04.210 of the Merced Municipal Code; and,
B. Approving the NASPO ValuePoint Software VAR #ADSPO16-130652 contract; and,
C. Authorizing the not to exceed spending authority to CDW-G from $180,000 to $300,000 across all agreements for goods and services; and,
D. Authorizing the City Manager or Deputy City Manager to execute the necessary documents; and,
E. Authorizing the Finance Officer to make any necessary budget adjustments.
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 21/22 Adopted Budget.
DISCUSSION
On 6/21/2021 City Council approved to waive the competitive bidding requirement to allow purchasing a variety of technology goods through CDW-G in a not to exceed amount of $180,000 for fiscal year 21/22. These purchases were piggybacking on several competitively bid agreements. These agreements cover hundreds of thousands of technology items offered through CDW-G. In a single purchase the City can leverage multiple agreements to ensure the best pricing per item. We recommend adding an additional agreement (NASPO ValuePoint Software VAR (#ADSPO16-130652)) be added to the list of already approved agreements in which the City may leverage when purchasing technology goods and services through CDW-G.
This agreement offers the additional discounts for software related items amongst the list of previously approved agreements. By utilizing any of these competitively bid agreements the City has no obligation to purchase goods through CDW-G. City staff will continue to solicit quotes for goods and services from several vendors. If CDW-G is the lowest priced vendor while utilizing one or more of these agreements, the City will procure through them. If another vendor provides a quote at a lower price point, the City will procure with that vendor. These agreements only ensure the City receives the lowest possible rate when purchasing with CDW-G.
We are also asking to increase the not to exceed spend authority from $180,000 to $300,000 in fiscal year 21/22. There were mid-year changes which increased technology acquisitions costs this fiscal year. For example, additional technology to provide telephone, printer, and network connectivity for relocating Police Department staff to the old UC Merced Venture Labs office space next door to City Hall. Also, the City will be able to modernize its data backup solution to provide support for cloud-based systems, eliminating the need to replace expensive, legacy, and end-of-life on premises equipment. The NASPO ValuePoint contract will allow the City to acquire this backup technology at the lowest price point. A new backup solution capable of backing up newly created data and cloud-based systems will allow the City to protect its investments whether the data exist locally, within our premises data center or in the cloud.
IMPACT ON CITY RESOURCES
The additional expenditure authority will increase from $180,000 to $300,000 to CDW-G. 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 and/or services. If the City expends below this threshold amount, no funds will be lost.
No additional funding is required at this time. All goods purchased using these agreements are funded by the requesting department on an as needed basis.
ATTACHMENTS
1. CDW Master Agreement ADSPO16-130652
2. CDW Master Agreement Amendment 2
3. CDW Master Agreement Amendment 3
4. CDW Master Agreement Amendment 4
5. CDW Master Agreement Amendment 5
6. CDW Master Agreement Amendment 6
7. CDW Master Agreement Amendment 7
8. State of California Participating Addendum