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; NASPO ValuePoint Software Value-Added Reseller ADSP016-130652) with CDW-G in a not to Exceed Amount of $500,000 in Fiscal Year 2023/2024
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; NASPO ValuePoint Software Value-Added Reseller ADSP016-130652) with CDW-G in a not to exceed amount of $500,000 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. State of California Cooperative Agreement 1-22-70-37 (PC Goods - Panasonic Rugged Laptops); and,
C. State of California Cooperative Agreement 1-22-70-08H (Rugged Tablets/Rugged 2-in-1 Devices,Panasonic); and,
D. State of California Cooperative Agreement 1-19-70-19H-3 (Enterprise Technology(Data Center Equipment) Hewlett Packard Enterprise (HPE) OEM); and,
E. Monterey County Office of Education CALSAVE #530067; and,
F. State of Utah Cooperative Online Marketplace Contract MA3458; and,
G. Sourcewell Contract #081419; and,
H. NASPO ValuePoint Software Value-Added Reseller ADSP016-130652; and,
I. Authorizing the City Manager or designee to execute the necessary documents; and,
J. Authorizing the Finance Officer to make necessary budget adjustments; and,
K. Authorizing the purchase of $500,000 of goods through CDW-G.
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 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 cover hundreds of thousands of technology items and software offered through CDW-G online marketplace. In a single purchase the City can leverage multiple contracts to ensure the best pricing per item. For example, we may purchase a printer, a printer cable, ink, and special software to print labels. Each of these items have different pricing depending upon the contract utilized. We may use the Sourcewell contract for the printers, the Calsave contract for the printer cable, and the State of Utah contract for the ink and software. Although hundreds of thousands of items are offered through these contracts not every item the City purchases from CDW-G will be on these contracts.
All of the contracts were publicly bid through their respective agency. By utilizing these competitively bid contracts the City has no obligation to purchase goods through CDW-G. City staff will continue to get quotes for goods from several vendors. If CDW-G is the lowest priced vendor while utilizing these contracts, 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 CDW-G. The City has purchase everything from ruggedized computers, monitors and software to computer cables and accessories through CDW-G.
IMPACT ON CITY RESOURCES
In the last two fiscal years the City has an average annual spending of $253,606 with CDW-G. These purchases account for spending across all City departments. As the City has spent on average $326,493 annually over the last two fiscal years it would be prudent to authorize the expenditure up to $500,000 in fiscal year 2023/2024 to CDW-G. 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 1-22-70-37
2. State of California Cooperative Agreement 1-22-70-08H
3. State of California Cooperative Agreement 1-19-70-19H-3
4. NASPO ValuePoint Software Value-Added Reseller ADSP016-130652
5. Monterey County Office of Education CALSAVE Agreement #530067
6. State of Utah Cooperative Online Marketplace Contract MA3458
7. Sourcewell contract #081419