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 1-19-70-19D-2 (Data Center Equipment) Dell/EMC - OEM with Ahead, Inc. dba Kovarus, Inc. in a not to Exceed Amount of $100,000 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 1-19-70-19D-2 (Data Center Equipment) Dell/EMC - OEM with Ahead, Inc. dba Kovarus, Inc. in a not to Exceed Amount of $100,000 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 1-19-70-19D-2 (Data Center Equipment) Dell/EMC - OEM; and,
C. Authorizing the City Manager or designee to execute the necessary documents; and,
D. Authorizing the purchase of up to $100,000 of goods through Ahead, Inc. dba Kovarus, Inc.
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 historically procured data center equipment on an as-needed basis through a variety of vendors, including Ahead, Inc. dba Kovarus, Inc. To ensure the City receives the best possible rate for data center equipment 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 Ahead, Inc. dba Kovarus, Inc. City staff will continue to get quotes for goods from several vendors, including direct purchasing through Dell or Dell EMC. If Kovarus, Inc. 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 through Ahead, Inc. dba Kovarus, Inc.
IMPACT ON CITY RESOURCES
In the last two fiscal years the City has not utilized Ahead, Inc. dba Kovarus, Inc for any necessary purchases. The City anticipates the need to replace or upgrade current data center equipment, including server hardware in this fiscal year as current hardware will no longer meets the needs of upcoming cybersecurity requirements. It would be prudent to authorize the expenditure up to $100,000 in fiscal year 2023/2024 to Ahead, Inc. dba Kovarus, Inc 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 1-19-70-19D-2