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 1-22-70-37 (PC Goods - Panasonic Rugged Laptops, State of California Cooperative Agreement 1-22-70-08H (Rugged Tablets/Rugged 2-in-1 Devices, Panasonic, State of California Cooperative Agreement 1-19-70-19H-3 (Enterprise Technology(Data Center Equipment) Hewlett Packard Enterprise (HPE) OEM, Monterey County Office of Education CALSAVE #530067, State of Utah Cooperative Online Marketplace Contract MA3458, Sourcewell Contract #081419, Sourcewell Contract #121923, NASPO ValuePoint Contract with State of Utah Cooperative Contract AR3227, National IPA contracts with Cobb County, GA Contract 23-6692-02 and City of Mesa,AZ Contract 2018011-01, State of California Software Licensing Program Agreement SLP-22-70-0025M Commvault, State of California Software Licensing Program Agreement SLP-23-70-0025R Adobe, State of California Software Licensing Program Agreement SLP-24-70-0025X FreshWorks with CDW-G in a not to Exceed Amount of $500,000 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 1-22-70-37 (PC Goods - Panasonic Rugged Laptops, State of California Cooperative Agreement 1-22-70-08H (Rugged Tablets/Rugged 2-in-1 Devices, Panasonic, State of California Cooperative Agreement 1-19-70-19H-3 (Enterprise Technology(Data Center Equipment) Hewlett Packard Enterprise (HPE) OEM, Monterey County Office of Education CALSAVE #530067, State of Utah Cooperative Online Marketplace Contract MA3458, Sourcewell Contract #081419, Sourcewell Contract #121923, NASPO ValuePoint Contract with State of Utah Cooperative Contract AR3227, National IPA contracts with Cobb County, GA contract 23-6692-02 and City of Mesa,AZ contract 2018011-01, State of California Software Licensing Program Agreement SLP-22-70-0025M Commvault, State of California Software Licensing Program Agreement SLP-23-70-0025R Adobe, State of California Software Licensing Program Agreement SLP-24-70-0025X FreshWorks) with CDW-G in a not to exceed amount of $500,000 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 1-22-70-37 (PC Goods - Panasonic Rugged Laptops); and,
C. Approving the use of State of California Cooperative Agreement 1-22-70-08H (Rugged Tablets/Rugged 2-in-1 Devices, Panasonic); and,
D. Approving the use of State of California Cooperative Agreement 1-19-70-19H-3 (Enterprise Technology(Data Center Equipment) Hewlett Packard Enterprise (HPE) OEM); and,
E. Approving the use of Monterey County Office of Education CALSAVE #530067; and,
F. Approving the use of State of Utah Cooperative Online Marketplace Contract MA3458; and,
G. Approving the use of Sourcewell Contract #081419; and,
H. Approving the use of Sourcewell Contract #121923; and,
I. Approving the use of NASPO ValuePoint Contract with State of Utah Cooperative Contract AR3227; and,
J. Approving the use of the National IPA contracts with Cobb County, GA contract 23-6692-02; and,
K. Approving the use of the National IPA contracts with City of Mesa, AZ contract 2018011-01; and,
L. Approving the use of State of California Software Licensing Program Agreement SLP-22-70-0025M Commvault; and,
M. Approving the use of State of California Software Licensing Program Agreement SLP-23-70-0025R Adobe; and,
N. Approving the use of State of California Software Licensing Program Agreement SLP-24-70-0025X FreshWorks; and,
O. Authorizing the City Manager or Deput City Manager to execute the necessary documents; and,
P. Authorizing the Finance Officer to make necessary budget adjustments; and,
Q. Authorizing the City Manager or Deput City Manager to execute the necessary documents for future contract amendments in motion B though N; and,
R. Authorizing the purchase of $500,000 of technology solutions with contracts in motion B through O.
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 through CDW-G each fiscal year. To ensure the City receives the best possible rate for these goods the City can utilize several competitively bid contracts from other agencies. These contracts encompass a broad array of technology items and software available on the CDW-G online marketplace. 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 their respective agencies, allowing the City flexibility in its purchasing decisions; there is no requirement to buy exclusively through CDW-G. City staff will continue to seek price quotes from multiple vendors. Should CDW-G offer the lowest prices when using these contracts, purchases will be made through them. However, if another vendor presents a lower quote, the City will opt to buy from that vendor instead. These arrangements ensure that the City secures the lowest possible rates through CDW-G when suitable. The City has procured a variety of products through CDW-G, including rugged computers, monitors, software, computer cables, and accessories.
By employing these contracts, we comply with the stipulations outlined in municipal code Section 3.04.210. 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 cooperative purchases with competitively bid contracts.
IMPACT ON CITY RESOURCES
Last fiscal year Council approved $500,000 of spending authority with CDW-G. The purchases account for spending across all City departments. As of the writing of this admin report it is anticipated to expend $425,000 is fiscal 23/24. It would be prudent to authorize the expenditure up to $500,000 in fiscal year 2024/2025 to CDW-G based upon the previous expenditures and authorization of last fiscal year. 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 1-22-70-37 (PC Goods - Panasonic Rugged Laptops
2. State of California Cooperative Agreement 1-22-70-08H (Rugged Tablets/Rugged 2-in-1 Devices, Panasonic
3. State of California Cooperative Agreement 1-19-70-19H-3 (Enterprise Technology(Data Center Equipment) Hewlett Packard Enterprise (HPE) OEM
4. Monterey County Office of Education CALSAVE #530067
5. State of Utah Cooperative Online Marketplace Contract MA3458
6. Sourcewell Contract #081419
7. Sourcewell Contract #121923
8. Naspo ValuePoint contact with State of Utah contract AR3227
9. National IPA contracts with Cobb County, GA contract 23-6692-02
10. National IPA contracts with City of Mesa,AZ contract 2018011-01
11. State of California Software Licensing Program Agreement SLP-22-70-0025M Commvault
12. State of California Software Licensing Program Agreement SLP-23-70-0025R Adobe
13. State of California Software Licensing Program Agreement SLP-24-70-0025X FreshWorks