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 City of Mesa Omnia Partners Contract 20240506, State of Minnesota SourceWell Contract 121923, and Region 4 Texas Education Service Center Omnia Contract R240304 Awarded to Vendors SHI Internation and DLT solutions, in a not to Exceed Amount of $150,000 in Fiscal Year 2025/2026
REPORT IN BRIEF
Considers approving to waive the competitive bid process to allow for the Cooperative Purchase with City of Mesa Omnia Partners Contract 20240506, State of Minnesota SourceWell Contract 121923, and Region 4 Texas Education Service Center Omnia Contract R240304 Awarded to Vendors SHI Internation and DLT solutions, in a not to Exceed Amount of $150,000 in Fiscal Year 2025/2026.
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 City of Mesa Omnia Partners Contract 20240506 with vendor SHI International; and,
C. Approving the use of State of Minnesota SourceWell Contract 121923 with vendor SHI International; and,
D. Approving the use of Region 4 Texas Education Service Center Omnia Contract R240304 with vendor DLT solutions; and,
E. Authorizing the City Manager to execute the necessary documents; and,
F. Authorizing the City Manager to execute the necessary documents for future contract amendments in motion B though D and contingent upon approval as to form by the City Attorney; and,
G. Authorizing the purchase of $150,000 of technology solutions with contracts in motion B through D.
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 25/26 Adopted Budget.
DISCUSSION
The City procures a broad range of technology goods and services each fiscal year through multiple vendors to support operational needs across all departments. To enhance procurement flexibility and cost efficiency, the City seeks to expand the number of competitively solicited contracts and vendors available for use.
These cooperative purchasing agreements, the City of Mesa Omnia Partners Contract #20240506, the State of Minnesota Sourcewell Contract #121923, and the Region 4 Education Service Center (Texas) Omnia Partners Contract #R240304 have all been publicly and competitively solicited by other governmental entities. As such, their use satisfies procurement requirements under Section 3.04.210 of the City of Merced Municipal Code, which exempts the formal bid process when leveraging contracts awarded through a competitive process by another public agency.
Utilization of these agreements provides the City with operational flexibility while not mandating exclusive use. Staff will continue to solicit competitive quotes from multiple vendors. If the pricing available through one of the cooperative agreements is the most advantageous, the City will proceed with that procurement method. If a lower price is identified through another source, the City will procure through that vendor. This approach ensures continued compliance with competitive procurement standards while maximizing fiscal efficiency.
Each of these competitively bid contracts includes access to hundreds of thousands of technology products and services. Due to the complexity and volume of items, it is not feasible for staff to verify whether all required goods are included in a single contract. For example, a common technology item-such as a monitor cable-may be listed multiple times based on color, length, or country of origin, creating extensive documentation. In prior fiscal years, the City experienced procurement delays when essential low-cost items were not included in an approved contract and the purchasing threshold had already been reached.
Expanding the number of cooperative contracts also helps mitigate vendor and distributor limitations. Some vendors may hold a valid contract but lack inventory or fulfillment capabilities for certain items. Having multiple contracts in place ensures the City retains access to alternative vendors with available stock, reducing delays caused by supply chain disruptions.
IMPACT ON CITY RESOURCES
Staff is seeking City Council authorization for expenditure authority not to exceed $150,000 across all City departments for fiscal year 2025/2026 to facilitate necessary technology purchases through competitive bid contracts. This authorization will accommodate routine, ongoing procurement requirements, without obligating or encumbering funds at the time of approval.
ATTACHMENTS
1. City of Mesa Omnia Partners Contract 20240506
2. State of Minnesota SourceWell Contract 121923
3. Region 4 Texas Education Service Center Omnia Contract R240304