Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approve the use of Cooperative Procurement Contracts, Including Sourcewell Contract #121923, National IPA Contracts with Cobb County, GA Contract #23-6692-02, Monterey County Office of Education CALSAVE Contract #538902, and Omnia Mesa Contract #2024056-01-GOV, with a not to Exceed Amount of $500,000 in Fiscal Year 2026/2027
REPORT IN BRIEF
Authorization to waive competitive bidding requirements to utilize competitively awarded cooperative procurement contracts for technology goods and services. This request authorizes a not-to-exceed amount of $500,000.
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 to utilize the cooperative purchasing; and,
B. Approving the use of Sourcewell Contract #121923; and,
C. Approving the use of National IPA contracts with Cobb County, GA Contract #23-6692-02; and,
D. Approving the use of Monterey County Office of Education CALSAVE Contract #538902; and,
E. Approving the use of Omnia Mesa Contract #2024056-01-GOV; and,
F. Authorizing the City Manager to execute the necessary documents; and,
G. Authorizing the City Manager to execute future contract amendments related to motions B through E, limited to extensions of the agreement term in accordance with optional renewal provisions contained within each contract, subject to approval as to form by the City Attorney; and,
H. Authorizing the purchase of $500,000 of technology solutions with contracts in motions B through E.
Body
ALTERNATIVES
1. Adopt the motion as recommended; or,
2. Approve, subject to other than recommended; or,
3. Refer the item back to staff for further evaluation; or,
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27 Adopted Budget.
DISCUSSION
The City Information Technology Department procures a range of technology-related goods and services each fiscal year to support operational needs across all departments. These include computing devices, peripherals, software, and related technology equipment.
The City utilizes cooperative procurement contracts that have been competitively solicited by other public agencies to streamline purchasing and obtain favorable pricing. These agreements provide access to a broad catalog of technology products and allow the City to select the most cost-effective procurement option.
In Fiscal Year 2025/2026, the City Council approved the use of these same cooperative procurement contracts with a not-to-exceed amount of $500,000. As of the date of this report, approximately $427,000 has been encumbered under these cooperative procurement contracts during Fiscal Year 2025/2026. Staff anticipates expenditures to approach the authorized $500,000 threshold by fiscal year-end due to ongoing technology procurement needs. The contracts listed in this report remain unchanged from the prior year.
For Fiscal Year 2026/2027, staff is requesting authorization to continue utilizing these contracts with a not-to-exceed amount of $500,000. This request provides expenditure authority only and does not introduce new contracts.
Staff will continue to obtain competitive pricing where applicable and may utilize multiple contracts to ensure best-value procurement. Use of these agreements does not preclude the City from seeking alternative vendors if more favorable pricing is available.
Use of these contracts complies with Section 3.04.210 of the Merced Municipal Code, which permits exemption from formal bidding when utilizing contracts awarded through a competitive process by other public agencies.
IMPACT ON CITY RESOURCES
Staff is requesting spending authority not to exceed $500,000 to accommodate anticipated technology purchases across all City departments. This authorization does not obligate or encumber funds but allows purchases to be made on an as-needed basis. Any expenditures exceeding the approved amount will require additional City Council approval.
ATTACHMENTS
1. Sourcewell Contract #121923
2. National IPA Contracts with Cobb County, GA Contract #23-6692-02
3. Monterey County Office of Education CALSAVE Contract #538902
4. Omnia Mesa Contract #2024056-01-GOV