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 1-24-70-19-11 , 1-24-70-19-19 , 1-24-70-19-25 , 1-22-70-31A , 1-22-70-31B , 1-22-70-31C , 1-22-70-37 , 1-23-70-04C, 1-21-70-04A , 1-21-70-08H , 1-21-70-08B Awarded to Vendors Entisys Solutions, Inc. dba e360, Ahead, Inc., dba Kovarus, Inc. in CA , Presidio Networked Solutions Group, LLC , Granite Data Solutions , Dell Marketing, L.P. , PC Specialists, Inc. dba Technology Integration Group (TIG) , CDW Government, LLC , UBEO Business Services , NWN Corporation in a not to Exceed Amount of $300,000 in Fiscal Year 2025/2026
REPORT IN BRIEF
Considers approval to waive the competitive bid process to allow for the cooperative purchase with competitively bid contracts; State of California Cooperative Agreement 1-24-70-19-11 , 1-24-70-19-19 , 1-24-70-19-25 , 1-22-70-31A , 1-22-70-31B , 1-22-70-31C , 1-22-70-37 , 1-23-70-04C, 1-21-70-04A , 1-21-70-08H , 1-21-70-08B Awarded to Vendors Entisys Solutions, Inc. dba e360, Ahead, Inc., dba Kovarus, Inc. in CA , Presidio Networked Solutions Group, LLC , Granite Data Solutions , Dell Marketing, L.P. , PC Specialists, Inc. dba Technology Integration Group (TIG) , CDW Government, LLC , UBEO Business Services , NWN Corporation in a not to Exceed Amount of $300,000 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 State of California Cooperative Agreement 1-24-70-19-11 (IT Hardware, Enterprise Technology - Exagrid/HPE); and,
C. Approving the use of State of California Cooperative Agreement 1-24-70-19-19 (IT Hardware, Enterprise Technology - Dell/Gigamon/Palo Alto); and,
D. Approving the use of State of California Cooperative Agreement 1-24-70-19-25 (IT Hardware, Enterprise Technology - Cisco/Commvault /Netscout/Netskope/PureStorage); and,
E. Approving the use of State of California Cooperative Agreement 1-22-70-31A (IT Hardware, PC Goods - Dell: Desktops, Thin/Zero Desktops, & Thin Laptops); and,
F. Approving the use of State of California Cooperative Agreement 1-22-70-31B (IT Hardware, PC Goods - Dell: Chromebooks, & Monitors); and,
G. Approving the use of State of California Cooperative Agreement 1-22-70-31C (IT Hardware, PC Goods - Dell: Laptops); and,
H. Approving the use of State of California Cooperative Agreement 1-22-70-37 (IT Hardware, PC Goods - Panasonic: Rugged Laptops); and,
I. Approving the use of State of California Cooperative Agreement 1-23-70-04C (IT Hardware, Plotters/Wide Format Printers (36" & 64"); and,
J. Approving the use of State of California Cooperative Agreement 1-21-70-04A (IT Hardware, Printers and MFD's (HP Desktops and MFD's); and,
K. Approving the use of State of California Cooperative Agreement 1-21-70-08H (IT Hardware, Rugged Tablets/Rugged 2-in-1 Devices, Panasonic); and,
L. Approving the use of State of California Cooperative Agreement 1-21-70-08B (IT Hardware, Tablets (Including Rugged)/2-in-1 Devices, Dell); and,
M. Authorizing the City Manager to execute the necessary documents; and,
N. Authorizing the City Manager to execute the necessary documents for future contract amendments in motion B though L and contingent upon approval as to form by the City Attorney; and,
O. Authorizing the purchase of up to $300,000 for goods between vendors Entisys Solutions, Inc. dba e360, Ahead, Inc., dba Kovarus, Inc. in CA , Presidio Networked Solutions Group, LLC , Granite Data Solutions , Dell Marketing, L.P. , PC Specialists, Inc. dba Technology Integration Group (TIG) , CDW Government, LLC , UBEO Business Services , NWN Corporation.
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 range of technology-related goods and services through competitively awarded contracts administered by the California Department of General Services (DGS) each fiscal year. These statewide contracts offer access to a wide variety of technology hardware, software, and related services from multiple authorized vendors. City staff may utilize more than one contract per procurement to ensure best-value pricing based on the specific configuration of each order.
These cooperative purchasing agreements have been publicly and competitively solicited by the State of California, satisfying procurement requirements under the City’s Municipal Code. Utilization of these agreements provides the City with operational flexibility, while not mandating exclusive use. Staff will continue to obtain competitive quotes from multiple sources. If the pricing available through a DGS contract is the most advantageous, the City will proceed with that procurement method. If a lower cost is identified through another vendor, the City will procure through that vendor. This approach ensures compliance with competitive procurement standards while maximizing cost efficiency.
Absent access to these contracts, the City would likely exceed its delegated purchasing authority early in the fiscal year, limiting the ability to obtain essential goods in support of City operations. Given the extensive catalog of products covered under these agreements, they represent the most efficient and cost-effective procurement mechanism.
The Information Technology Department therefore requests that the City Council authorize the continued use of these competitively awarded cooperative contracts and waive formal bidding requirements pursuant to Section 3.04.210 of the Merced Municipal Code, which provides for exemptions when purchases are made through contracts awarded by other public agencies following a competitive solicitation process.
IMPACT ON CITY RESOURCES
In the prior fiscal year, the City Council approved $400,000 in spending authority under these contracts to accommodate technology purchases across all City departments, including a one-time capital acquisition. For the current fiscal year, staff is requesting a reduced spending authority of $300,000, as only routine, ongoing purchases are anticipated. Any expenditures beyond the $300,000 threshold will require additional Council approval. This authorization does not obligate or encumber funds but grants the City the authority to make purchases on an as-needed basis. If actual expenditures fall below the approved amount, no funds will be lost.
ATTACHMENTS
1. State of California Cooperative Agreement State of California Cooperative Agreement 1-24-70-19-11 (IT Hardware, Enterprise Technology - Exagrid/HPE)
2. State of California Cooperative Agreement 1-24-70-19-19 (IT Hardware, Enterprise Technology - Dell/Gigamon/Palo Alto)
3. State of California Cooperative Agreement 1-24-70-19-25 (IT Hardware, Enterprise Technology - Cisco/Commvault /Netscout/Netskope/PureStorage)
4. State of California Cooperative Agreement 1-22-70-31A (IT Hardware, PC Goods - Dell: Desktops, Thin/Zero Desktops, & Thin Laptops
5. State of California Cooperative Agreement 1-22-70-31B (IT Hardware, PC Goods - Dell: Chromebooks, & Monitors
6. State of California Cooperative Agreement 1-22-70-31C (IT Hardware, PC Goods - Dell: Laptops
7. State of California Cooperative Agreement 1-22-70-37 (IT Hardware, PC Goods - Panasonic: Rugged Laptops
8. State of California Cooperative Agreement 1-23-70-04C (IT Hardware, Plotters/Wide Format Printers (36" & 64"
9. State of California Cooperative Agreement 1-21-70-04A (IT Hardware, Printers and MFD's (HP Desktops and MFD's
10. State of California Cooperative Agreement 1-21-70-08H (IT Hardware, Rugged Tablets/Rugged 2-in-1 Devices, Panasonic
11. State of California Cooperative Agreement 1-21-70-08B (IT Hardware, Tablets (Including Rugged)/2-in-1 Devices, Dell