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 Contract; County of Merced 2021 AMS FOCUS Agreement 2021092 051821 with AMS.net and MGT in a not to Exceed Amount of $300,000 in Fiscal Year 2025/2026
REPORT IN BRIEF
Considers approving to waive the competitive bid process to allow for the cooperative purchase with competitively bid contract; 2021 AMS FOCUS Agreement 2021092 051821 with AMS.net and MGT in a not to exceed amount of $300,000 in Fiscal Year 2025/2026.
RECOMMENDATION
City Council - Adopt a motion:
A. Authorizing the waiver of the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code for cooperative purchase; and,
B. Authorizing the use of 2021 AMS FOCUS Agreement 2021092 051821; and,
C. Authorizing the use of future contract amendment to 2021 AMS FOCUS Agreement 2021092 051821 if executed by the County of Merced and contingent upon approval as to form by the City Attorney; and,
D. Authorizing the City Manager to execute the necessary documents; and,
E. Authorizing the purchase of goods through AMS.net or MGT in the amount not to exceed $300,000 for Fiscal Year 2025-26.
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 FY2025-26 Adopted Budget.
DISCUSSION
The City’s Information Technology Department procures a variety of technology-related goods and services each fiscal year to support Citywide operational requirements. These items include networking infrastructure equipment such as wireless access points, firewalls, and switches, emergency notification hardware and software, hardware maintenance services, and annual licensing.
To secure favorable pricing and ensure compliance with procurement regulations, the City utilizes competitively solicited cooperative purchasing agreements established by other public agencies. One such agreement is the County of Merced’s AMS FOCUS Agreement No. 2021092 051821, originally awarded in 2021 through a public solicitation process. An amendment approved by the Merced County Board of Supervisors on May 7, 2024, extended the term of this agreement through May 2026.
The City is not obligated to purchase exclusively from AMS.net under this agreement. Staff will continue to solicit competitive quotes from multiple vendors, and purchases will be made based on the lowest responsive price available. The AMS FOCUS Agreement provides flexibility and access to pre-negotiated pricing for a broad range of technology items, often resulting in cost savings through aggregated public sector pricing.
AMS.net has recently merged with MGT, and it is currently unclear which entity will serve as the contracting and invoicing party for future transactions. To maintain procurement continuity, staff requests Council authorization to issue payments and execute contracts with either AMS.net or MGT, as necessary.
Use of this agreement complies with Section 3.04.210 of the Merced Municipal Code, which permits exemption from formal competitive bidding when utilizing contracts awarded through a competitive process by another public agency. Without this authorization, the City could exceed its delegated procurement authority early in the fiscal year, limiting the ability to acquire critical technology resources.
The Information Technology Department therefore requests Council authorization to waive competitive bidding requirements and continue utilizing this cooperative purchasing agreement. This approach ensures cost-effective, compliant, and streamlined technology procurement.
IMPACT ON CITY RESOURCES
Over the past two fiscal years, average annual expenditures with AMS.net have been $160,000, inclusive of all City departments. For Fiscal Year 2025-2026, the Information Technology Department anticipates a one-time capital acquisition of approximately $150,000. To accommodate this purchase, along with anticipated baseline expenditures, staff is requesting spending authority not to exceed $300,000. This one-time capital acquisition may be procured through this cooperative agreement or through an alternative procurement method, depending on which provides the lowest total cost to the City. This authorization does not constitute a budget appropriation or obligation of funds but instead establishes expenditure authority for potential procurements. Any purchases exceeding this threshold will be brought back to Council for additional approval.
Funding is included in the FY 2025-26 proposed budget and would be contingent upon approval of the budget by the Council.
ATTACHMENTS
1. 2021 AMS FOCUS Agreement 2021092 051821 with Amendment