Report Prepared by: J.R. Wright, Information Technology Manager
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approval of Agreement for an Additional $60,000 Under the State of California Cooperative Agreement 1-19-70-19D-1 (Dell/EMC Products - Enterprise Technology) with PC Specialists Inc., dba Technology Integration Group (TIG) Contract Amounts Totaling not to Exceed Amount of $140,000
REPORT IN BRIEF
Considers waiving the competitive bidding requirements as stated in Section 3.04.210 of the Merced Municipal Code and approving the agreement for an additional $60,000 under the State of California Cooperative Agreement 1-19-70-19D-1 (Dell/EMC Products - Enterprise Technology) with PC Specialists Inc., dba Technology Integration Group (TIG) contract amounts totaling not to exceed amount of $140,000.
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 due to piggybacking; and,
B. Authorizing the use of State of California Cooperative Agreement 1-19-70-19D1-1 (Dell/EMC Products - Enterprise Technology); and,
C. Authorizing the purchase of an additional $60,000, for a not to exceed total of $140,000 of goods through PC Specialists Inc., dba Technology Integration Group (TIG); and,
D. Authorizing the City Manager or the Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer back to staff for additional information; or,
3. Deny.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the FY 22/23 Adopted Budget.
DISCUSSION
In July 2022 Council adopted a motion approving the purchase of goods through PC Specialists Inc., dba Technology Integration Group (TIG) in a not to exceed amount of $80,000. The City has primarily procured Dell laptops through PC Specialists Inc., dba Technology Integration Group (TIG) each fiscal year as they have consistently offered the lowest available price. In addition to Dell laptops, TIG offers state issued competitively bid pricing for Dell/EMC data center equipment, including servers. To ensure the City receives the best possible rate for these Dell technology goods the City has utilized the State’s competitively bid contracts.
These contracts were publicly bid through the State of California. By utilizing these competitively bid contracts the City had no obligation to purchase goods through TIG. City staff continued to obtain quotes for goods from several vendors, including direct purchasing through Dell Technologies. To date the City has purchased $53,384 worth of goods through PC Specialists Inc., dba Technology Integration Group (TIG) for this fiscal year.
The results of an independent audit of the City’s water SCADA system an Emergency Response Plan was developed by a third party (AARC) in May 2021. Outlined in the response plan was to improve off-site data backups. Building upon this recommendation and from lessons learned during the 2023 floods, the water department is developing a disaster recovery site located off-site from the main datacenter location to maintain continuity of services and provide critical SCADA systems resiliency. In order to accomplish this much needed improvement, the City must purchase additional servers this fiscal year at a cost of $80,000. After obtaining quotes from various vendors, we found that PC Specialists Inc., dba Technology Integration Group (TIG) was the lowest cost when purchased through the State of California Cooperative Agreement 1-19-70-19D-1. This unanticipated cost combined with current fiscal year spending exceeds the original requested amount of $80,000. We are asking to increase the spending authority by $60,000 for a not to exceed amount of $140,000.
IMPACT ON CITY RESOURCES
No appropriation is needed. Funding is available within this current fiscal year budget.
ATTACHMENTS
1. TIG Cooperative Agreement Administrative Report
2. State of California Cooperative Agreement 1-19-70-19D-1