Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval to Waive the Competitive Bid Process to Allow for the Cooperative Purchase with Competitively Bid Contracts; State of California Cooperative Agreement 1-22-70-31B, 1-23-70-04C, 1-21-70-04A, 1-22-70-31C, 1-21-70-08B, 1-22-70-31A, 1-19-70-19B-2, and 1-21-70-19C-1 Awarded to Vendors Dell Inc, Ubeo, NWN, Granite Data Solutions, Presidio Networked Solution Group LLC, and PC Specialist, inc DBA Technology Integration Group in a not to Exceed Amount of $400,000 in Fiscal Year 2024/2025
REPORT IN BRIEF
Considers approving to waive the competitive bid process to allow for the Cooperative Purchase with Competitively Bid Contracts; State of California Cooperative Agreement 1-22-70-31B, 1-23-70-04C, 1-21-70-04A, 1-22-70-31C, 1-21-70-08B, 1-22-70-31A, 1-19-70-19B-2, and 1-21-70-19C-1 awarded to vendors Dell Inc, Ubeo, NWN, Granite Data Solutions, Presidio Networked Solution Group LLC, and PC Specialist, inc DBA Technology Integration Group in a not to Exceed Amount of $400,000 in Fiscal Year 2024/2025.
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 State of California Cooperative Agreement 1-22-70-31B (PC Goods - Dell Products Chromebooks and Monitors); and,
C. Approving the use of State of California Cooperative Agreement 1-23-70-04C (Plotters); and,
D. Approving the use of State of California Cooperative Agreement 1-21-70-04A (Printers and Multifunction Devices); and,
E. Approving the use of State of California Cooperative Agreement 1-22-70-31C (PC Goods - Dell Laptops); and,
F. Approving the use of State of California Cooperative Agreement 1-21-70-08B (Tablets 2-in-1 devices Dell); and,
G. Approving the use of State of California Cooperative Agreement 1-22-70-31A (PC Goods - Dell Products Desktops, Thin Desktops, Thin Laptops, Rugged Laptops); and,
H. Approving the use of State of California Cooperative Agreement 1-19-70-19B-2 (Data Center Equipment - Cisco); and,
I. Approving the use of State of California Cooperative Agreement 1-21-70-19C-1 (Data Center Equipment - Commvault); and,
J. Authorizing the City Manager or Deput City Manager to execute the necessary documents; and,
K. Authorizing the Finance Officer to make necessary budget adjustments; and,
L. Authorizing the City Manager or Deput City Manager to execute the necessary documents for future contract amendments in motion B though I; and,
M. Authorizing the purchase of up to $400,000 for goods between vendors Dell Inc, Ubeo, NWN, Granite Data Solutions, Presidio Networked Solution Group LLC, and PC Specialist, inc DBA Technology Integration Group.
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 24/25 Adopted Budget.
DISCUSSION
The City purchases a variety of technology goods utilizing the State of California Department of General Service Competitively bid contracts. These contracts encompass a broad array of technology items and software available from several vendors. For any given purchase, the City may use several contracts simultaneously to achieve optimal pricing for each order.
These contracts have been publicly bid by the state of California, allowing the City flexibility in its purchasing decisions; there is no requirement to buy exclusively through the contracts. City staff will continue to seek price quotes from multiple vendors. Should one of these contracts offer the lowest price, purchases will be made using contract. However, if another vendor presents a lower quote, the City will opt to buy from that vendor. These arrangements ensure that the City secures the lowest possible rates through via competitive bid contracts.
Without such agreements, the City would quickly surpass its authorized spending limit within the first 30 days of the fiscal year, preventing further procurement of goods. Given that these contracts encompass millions of items, using them is the most efficient and cost-effective method to guarantee continued access to necessary goods at the lowest cost points. The Information Technology Department is requesting that the Council waive the competitive bidding requirements, as outlined in municipal code section 3.04.210, which exempts competitive bidding for cooperative purchases.
IMPACT ON CITY RESOURCES
Last fiscal year Council approved $520,000 of spending authority with these contracts. These purchases accounted for spending across all City departments. As the City had onetime expenses that will not be required in Fiscal Year 24/25 staff is seeking authority in the amount not to exceed $400,000. 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.
ATTACHMENTS
1. State of California Cooperative Agreement 1-22-70-31B PC Goods - Dell Products Chromebooks and Monitors
2. State of California Cooperative Agreement 1-23-70-04C Plotters;
3. State of California Cooperative Agreement 1-21-70-04A Printers and Multifunction Devices
4. State of California Cooperative Agreement 1-22-70-31C PC Goods - Dell Laptops
5. State of California Cooperative Agreement 1-21-70-08B Tablets 2-in-1 devices Dell
6. State of California Cooperative Agreement 1-22-70-31A PC Goods - Dell Products Desktops, Thin Desktops, Thin Laptops, Rugged Laptops
7. State of California Cooperative Agreement 1-19-70-19B-2 Data Center Equipment - Cisco
8. State of California Cooperative Agreement 1-21-70-19C-1 Data Center Equipment - Commvault