Report Prepared by: J.R. Wright, Information Technology Manager
Title
SUBJECT: Approval to Waive the Competitive Bid Process to Allow for the Cooperative Purchase Under State of California Cooperative Agreement 1-22-70-31C (PC Goods - Dell Laptops) and State of California Cooperative Agreement 1-19-70-19D-1 (Dell/EMC Products - Enterprise Technology) with PC Specialists Inc., dba Technology Integration Group (TIG), in a not to Exceed Amount of $120,000 in Fiscal Year 2023/2024
REPORT IN BRIEF
Considers approving to waive the competitive bid process to allow for the cooperative purchase under State of California Cooperative Agreement 1-22-70-31C (PC Goods - Dell Laptops) and State of California Cooperative Agreement 1-19-70-19D-1 (Dell/EMC Products - Enterprise Technology) with PC Specialists Inc., dba Technology Integration Group (TIG).in a not to Exceed Amount of $120,000 in Fiscal Year 2023/2024.
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 piggybacking; and,
B. Authorizing the use of State of California Cooperative Agreement 1-22-70-31C (PC Goods - Dell Laptops); and,
C. Authorizing the use of State of California Cooperative Agreement 1-19-70-19D1-1 (Dell/EMC Products - Enterprise Technology); and,
D. Authorizing the City Manager or designee to execute the necessary documents; and,
E. Authorizing the purchase of up to $120,000 of goods through PC Specialists Inc., dba Technology Integration Group (TIG).
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 23/24 Adopted Budget.
DISCUSSION
The City has primarily procured Dell laptops through PC Specialists Inc., dba Technology Integration Group (TIG) each fiscal year as they offer the lowest available price. City staff have researched custom server Dell/EMC pricing and found the lowest price to now be consistently through TIG. To ensure the City receives the best possible rate for these Dell technology goods the City can utilize the State’s competitively bid contracts.
The contracts were publicly bid through the State of California. By utilizing these competitively bid contracts the City has no obligation to purchase goods through TIG. City staff will continue to get quotes for goods from several vendors, including direct purchasing through Dell Technologies. If TIG is the lowest priced vendor while utilizing this contract, 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 though TIG.
IMPACT ON CITY RESOURCES
In the last two fiscal years the City has an average annual spending of $40,040 with TIG, exclusively for laptop computers. These laptop purchases account for spending across all City departments. The City anticipates the need to new replace or upgrade current servers and laptops hardware the upcoming fiscal year as current hardware will no longer meets the needs for future software application upgrades, including the newest operating system. The currently installed operating system will end of life in October 2025. To prepare for this mandatory operating system upgrade the City will be required to replace legacy hardware. It would be prudent to authorize the expenditure up to $120,000 in fiscal year 2023/2024 to PC Specialists Inc., dba Technology Integration Group (TIG) 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 1-22-70-31C
2. State of California Cooperative Agreement 1-19-70-19D1-1