Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approve the use of Cooperative Procurement Contracts, Including Omnia Partners Contract #20240506-02 and State of Minnesota SourceWell Contract #121923 with Vendor SHI International, with a not to Exceed Amount of $175,000 in Fiscal Year 2026/2027
REPORT IN BRIEF
Authorization to waive competitive bidding requirements to utilize competitively awarded cooperative procurement contracts for technology goods and services. This request authorizes a not-to-exceed amount of $175,000.
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 Omnia Partners Contract #20240506-02 with vendor SHI International; and,
C. Approving the use of State of Minnesota SourceWell Contract #121923 with vendor SHI International; and,
D. Authorizing the City Manager to execute the necessary documents; and,
E. Authorizing the City Manager to execute future contract amendments related to motions B through C, limited to extensions of the agreement term in accordance with optional renewal provisions contained within each contract, subject to approval as to form by the City Attorney; and,
F. Authorizing the purchase of $175,000 of technology solutions with contracts in motions B through C.
Body
ALTERNATIVES
1. Adopt the motion as recommended; or,
2. Approve, subject to other than recommended; or,
3. Refer the item back to staff for further evaluation; or,
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27 Adopted Budget.
DISCUSSION
The City procures a range of technology goods and services each fiscal year to support operational needs across all departments. To enhance procurement flexibility and cost efficiency, the City utilizes cooperative purchasing contracts that have been competitively solicited by other public agencies.
In Fiscal Year 2025/2026, the City Council approved the use of these cooperative procurement contracts with a not-to-exceed amount of $150,000. This was the first year the City utilized these contracts. Staff anticipated savings in the range of 0% to 1% compared to other procurement methods, and actual purchasing results were consistent with that expectation. Based on this outcome, staff is requesting continued use of these contracts as they provide cost savings while maintaining procurement flexibility.
For Fiscal Year 2026/2027, staff is requesting authorization to continue utilizing these same contracts with a not-to-exceed amount of $175,000. This request provides expenditure authority only and does not introduce new contracts.
Staff will continue to obtain competitive pricing where applicable and may utilize multiple procurement options to ensure best-value purchasing. Use of these agreements does not preclude the City from seeking alternative vendors if more favorable pricing is available.
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.
IMPACT ON CITY RESOURCES
Staff is requesting spending authority not to exceed $175,000 to accommodate anticipated technology purchases across all City departments. This authorization does not obligate or encumber funds but allows purchases to be made on an as-needed basis. Any expenditures exceeding the approved amount will require additional City Council approval.
ATTACHMENTS
1. Omnia Partners Contract #20240506-02
2. State of Minnesota SourceWell Contract #121923