Title
Report regarding a resolution approving the First Amendment to Purchase Agreement with Dell Marketing L.P. in an additional amount of $27,560, and a not to exceed amount of $267,957 for the purchase of additional computer equipment and authorizing the City Manager to execute the First Amendment to Purchase Agreement; and authorizing a total purchase budget of $297,957 with authorization for the City Manager to execute future amendments in an amount not to exceed $30,000 (Tony Barrera, Director of Information Technology)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving the First Amendment to Purchase Agreement with Dell Marketing L.P. in an additional amount of $27,560, and a not to exceed amount of $267,957 for the purchase of additional computer equipment and authorizing the City Manager to execute the First Amendment to Purchase Agreement; and authorizing a total purchase budget of $297,957 with authorization for the City Manager to execute future amendments in an amount not to exceed $30,000.
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BACKGROUND
On November 9, 2022, City Council approved the procurement of technology equipment from Dell Marketing L.P. (Dell) for the new Civic Campus building and equipment replacement. The City used the National Association of State Procurement Officials (“NASPO”) ValuePoint Cooperative Purchasing Program for the computer equipment purchase. Cooperative purchase programs allow the City to “piggyback” on other agencies’ bid processes and take advantage of already contracted low prices. Use of cooperative purchasing programs is a way of obtaining goods and services by aggregating volume, securing value pricing, and reducing administrative overhead. Use of purchasing cooperatives significantly reduces the time and resources needed to competitively bid goods and services contracts, resulting in better overall value. The total of Dell Technologies contract was $240,397.
City staff recommends procuring an additional 24 Chromebooks for the new Civic Campus Library Services and 10 additional desktop computers for the annual computer replacement from Dell. Staff will leverage the National Association of State Procurement Officials (“NASPO”) ValuePoint Cooperative Purchasing Program for the computer equipment purchase. Under SSF Municipal Code section 4.04.040(b), if the contract terms are valid and have been negotiated by another governmental agency using a quote or bid process that substantially conforms to the procedures established by state law and the City purchasing ordinance. Further, the City’s purchasing policy requires the bid process on the piggybacked contract to have been completed within the last year. Staff and the City Attorney have reviewed the processes and procedures for NASPO/state participating addendum and found them to be in compliance with SSF purchasing procedures.
The equipment is made by Dell, which is the current standard for computers, monitors and peripherals used by City Departments. Continued standardization of technology equipment facilitates maintenance and potential troubleshooting of these products by the South San Francisco Information Technology (IT) Department.
The equipment cost for this amendment is listed below:
|
(24) Dell Latitude 5400 Chromebook for Civic Campus |
$16,156 |
|
(10) Dell 7000 Micro desktop computers for equipment replacement |
$11,404 |
|
Total |
$27,560 |
FISCAL IMPACT
The IT equipment costs for Library amounts to $202,990 and is included in the current total project budget of $103,000,000 for pf2103/pf2207. No additional funding appropriation is required.
The equipment cost as part of the annual replacement is $64,967 and will be appropriated from the Information Technology Department 2022-2023 operating budget. No additional funding appropriation is required.
Staff is also including an additional $30,000 for future equipment purchases for fiscal year 2022-2023 budget year. No additional funding appropriation is required.
RELATIONSHIP TO STRATEGIC PLAN
This effort is included in the City’s Strategic Plan. It aligns with Priority #2 which is focused on enhancing quality of life.
CONCLUSION
In conclusion, staff recommends City Council approve a resolution authorizing a First Amendment to the Dell Purchase Agreement allowing staff to procure additional computer equipment for a total purchase amount not to exceed $297,957, which includes an additional $30,000 in authorization for the City Manager to approve future amendments to the Purchase Agreement.