Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval to Authorize the City Manager to Execute an Agreement with Ahead Inc Doing Business as Kovarus Inc for a Server and Storage Area Network System for $306,453.22 with 5% Contingency in an Amount not-to-Exceed $321,776 in Fiscal Year 2024/2025 Through the State of California’s Cooperative Agreement 1-24-70-19-19-70-19H1
REPORT IN BRIEF
Considers approving to authorize the City Manager to Execute an Agreement with Ahead Inc Doing Business as Kovarus Inc for a Server and Storage Area Network System for $306,453.22 with 5% Contingency in a not to Exceed Amount of $321,776 in Fiscal Year 2024/2025 Through the State of California’s Cooperative Agreement 1-24-70-19-19-70-19H1.
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 the State of California’s cooperative purchasing program; and,
B. Approving the use of State of California Cooperative Agreement 1-24-70-19-19 (Enterprise Technology); and,
C. Authorizing the City Manager to execute the necessary documents; and,
D. Authorizing the Buyer to issue a Purchase Order with Ahead Inc Doing Business As Kovarus Inc in an amount not to exceed $321,776 of technology solutions.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny the request; or,
3. 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
In 2021, Council approved the purchases of a digital storage systems called a Storage Area Network (SAN) for the Wastewater Treatment Plant. The Server and SAN stores almost all the electronic records for wastewater plant operations.
The SAN systems are designed to have a useable life span of approximately four to five years. The City has been operating this system for four years. As it has taken approximately six months to procure, ship, and install a new solution, it is prudent to procure before we reach the 5-year mark. The system has reached near the end of its operational lifespan and requires replacement to ensure continued reliability, security, and uninterrupted service delivery. Failure to replace the system in a timely manner increases the risk of data loss and service disruptions. Additionally, an aging system may no longer receive manufacturer support, including critical security updates, which could expose the City to cybersecurity threats.
The City currently utilizes a wide variety of state of California competitive bid contracts for technology procurement. This allows the City to take advantage of the state buying power to receive the best possible rate when utilizing these contracts. The State of California has a competitively bid contract for storage area networks systems that the City can utilizes that was awarded to Ahead Inc, doing business as, Kovarus Inc.
By employing this contract, we comply with the stipulations outlined in municipal code Section 3.04.210. 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 and allow the procurement of a new Server and SAN System through Ahead Inc for an amount not to exceed $321,776.
IMPACT ON CITY RESOURCES
Funding for this purchase is included in the Fiscal Year 24/25 Adopted Budget within Fund 6000-Wastewater. Staff will initial a budget transfer moving funds from CP250027-Project to Be Determined into CP250071-WTP Server Upgrade to purchase the replacement server.
ATTACHMENTS
1. State of California Cooperative Agreement 1-24-70-19-19-70-19H1 (Enterprise Technology)
2. Quote