Report Prepared by: J.R. Wright, Information Technology Manager
Title
SUBJECT: Approval to Waive the Competitive Bidding Process to Allow for the Cooperative Purchase Under State of California Cooperative Agreement 1-17-70-01A (Desktop Computers (Dell), Mandatory) and State of California Cooperative Agreement 1-17-70-05A (Monitors, Desktop (Dell), Mandatory) with Granite Data Solutions in a not to Exceed Amount of $60,000 in Fiscal Year 2021/2022
REPORT IN BRIEF
Approval to waive the competitive bid process to allow for the cooperative purchase under State of California Cooperative Agreement 1-17-70-01A (Desktop Computers (Dell), Mandatory) and State of California Cooperative Agreement 1-17-70-05A (Monitors, Desktop (Dell), Mandatory) with Granite Data Solutions in a not to exceed Amount of $60,000 in Fiscal Year 2021/2022.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving to waive the competitive bidding requirements for cooperative purchasing as stated in Section 3.04.210 of the Merced Municipal Code; and,
B. Authorizing the use of State of California Cooperative Agreement 1-17-70-01A (Desktop Computers (Dell), Mandatory); and,
C. Authorizing the use of State of California Cooperative Agreement 1-17-70-05A (Monitors, Desktop (Dell), Mandatory); and,
D. Authorizing the City Manager or Deputy City Manager to execute the necessary documents; and,
E. Authorizing the purchase of up to $60,000 of goods through Granite Data Solutions.
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
The City primarily procures Dell desktops through Granite Data Solutions each fiscal year as they offer the lowest available price. To ensure the City receives the best possible rate for these goods the City can utilize the State’s competitively bid contracts.
The contracts were competitively solicited and publicly awarded by the State of California serving as the lead agency while utilizing industry best practices and processes. They have been verified to comply with the City of Merced’s formal procurement policies. With these contracts, the City can leverage economies of scale to obtain transparent, best and/or value-driven pricing. The City would not be able to obtain lower quotes from vendors by going through the City’s bidding process.
Additionally, this approval helps departments comply with charter and municipal regulations regarding purchases above the bid threshold. By utilizing these competitively bid contracts the City has no obligation to purchase goods through Granite Data Solutions. City staff will continue to get quotes for goods from several vendors, including direct purchasing through Dell Technologies. If Granite Data Solutions is the lowest priced vendor while utilizing these contracts, we will procure through them. If another vendor provides a quote at a lower price point, we will procure with that vendor. These contracts only ensure we get the lowest possible rate when applicable through Granite Data Solutions.
IMPACT ON CITY RESOURCES
In the last two fiscal years the City has an average annual spending of $40,472 with Granite Data Solutions. These purchases account for spending across all City departments. As the City has spent on average $40,472 annually over the last two fiscal years. The City anticipates that costs will increase this year due to the need to replace current legacy hardware that no longer meets the need for the departments. It would be prudent to authorize the expenditure up to $60,000 in fiscal year 2021/2022 to Granite Data Solutions to account for these anticipated costs. For any expenditure above this threshold, we 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.
ATTACHMENTS
1. State of California Cooperative Agreement 1-17-70-01A
2. State of California Cooperative Agreement 1-17-70-05A
3. IT General Provision