CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/18/2024
DEPARTMENT: Information Technology
SUBJECT:
FIRST AMENDMENT TO THE AGREEMENT WITH ABTECH TECHNOLOGIES
FOR INFORMATION TECHNOLOGY SUPPORT SERVICES
RECOMMENDED ACTION(S):
1. Approve the First Amendment to the Professional Consultant Services Agreement for Information Technology Support Services with Abtech Technologies.
2. Authorize the Mayor to sign, and the City Clerk to attest, the First Amendment to the Agreement with Abtech Technologies substantially in the form attached.
EXECUTIVE SUMMARY:
On June 15, 2021, the City awarded a Professional Consultant Services Agreement to Abtech Technologies ("Abtech") to provide the City Information Technology (“IT”) Support Services, in the amount of $1,197,546 for a term of three years with two optional one-year extensions (“Agreement”) (Attachment 1).
The current term under the agreement expires July 31, 2024. The proposed First Amendment to the Agreement for IT Support Services with Abtech Technologies Inc. (“First Amendment”) would exercise the first available one-year extension option of the Agreement (Attachment 2). The First Amendment would extend the term to July 31, 2025, and add $441,500 in total compensation under the Agreement for a new total compensation amount of $1,639,046. The Finance department prepared the agreement, and the City Attorney has reviewed and approved the Amendment as to form. Sufficient funds are available in Fiscal Year 2024-25 of the 2023-2025 Operating Budget.
BACKGROUND:
On June 15, 2021, after a competitive procurement process, the City Council awarded an agreement to Abtech Technologies to provide the City Information Technology (“IT”) support services, in the amount of $1,197,546 for a term of three years with two optional one-year extensions (Attachment 1). The agreement is divided into two components: the baseline support services
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(“Base”), which are billed at a fixed monthly amount of $29,224 for a total of $350,682 per year, and extra work for projects outside the base scope of services (“Extra Work”) up to a maximum of $48,500 per year. Actual expenses for Extra Work may vary based on hours utilized. The actual costs for Extra Work were $14,395 during the first contract year, $34,423 in the second year, and have been $11,192 to date in the third year.
DISCUSSION:
Abtech uses a combination of on-site and remote resources to fulfill their scope of services, which includes user computer support, computer equipment replacement and maintenance, patch management, server administration, security vulnerability remediation, and network monitoring. One full-time engineer is assigned on-site who provides the bulk of the user computer support, and a team of off-site engineers to provide backup support as well as the other required specialized services. The City established quantifiable service level performance measures (“SLAs”) for which Abtech submits monthly reports with supporting data. After overcoming challenges encountered in the onboarding process, Abtech has delivered consistently high success in its SLA measures, as illustrated in Table 1.
Service Level Performance
Representative
Reporting Measure
Monthly
Target Year 1* Year 2 Year 3**
3-Year
Avg
Service Requests
Completed within 3 Days 90% Complete 94% 98% 95% 95%
Network Availability 99.5% Available 100% 100% 100% 100% Server Patches 95% Patched 96% 100% 100% 99%
Computer Patches 95% Updated 88% 95% 99% 94%
End User Satisfaction 95% Satisfied 99% 100% 100% 100%
*11 months of reporting after onboarding **9 months available this contract year.
To summarize, Abtech has met 95% of their performance measures over the lifetime of their contract and met 100% of their performance measures over the previous 12 months. Staff evaluated Abtech according to the City’s standard vendor performance assessment form. Staff has been generally satisfied with Abtech’s timeliness, although with some concerns about adhering to project implementation schedules, and very satisfied with its overall performance, adherence to budget, and customer service.
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Table 2: Vendor Assessment
Staff is requesting a net increase of $42,300 for the First Amendment, adjusting the one-year amount from the original contract of $399,182, to a revised amount of $441,500, as detailed in Table 3. The bulk of the increase, $30,000, is due to a switch of the on-site engineer from a “Level 1” Engineer to a “Level 2” Engineer. at the request of the City. Staff believes a more highly skilled individual on-site will be valuable as the City seeks to fulfill its Strategic Plan goals to deploy more innovative technologies and improve organizational efficiency. For example, staff is working on projects to automate business document workflows that will involve applications such as Energov, Laserfiche, and Docusign, and a Level 2 Engineer will be able to resolve potential problems more quickly and effectively. Abtech complied with the City’s request for a replacement in March 2024 without additional cost at that time. The remainder of the increase is the result of a 3.5% CPI increase, or $12,300, based on the 2023 Los Angeles/Long Beach/Anaheim CPI index.
Table 3: First Amendment Adjustment Detail
Item Original
Contract
First Amendment
Base Contract
CPI Increase 3.5% $ 12,300
Engineer Replacement $ 30,000
Total Adjustment $ 42,300
Total Base $350,682 $393,000
Total Extra Work $ 48,500 $48,500
Total Annual Amount $399,182 $441,500
Finally, hourly contract rates for “Extra Work” have been increased at the Consultant’s request to reflect current local wages in the technology industry, although the Extra Work contract amount is not being increased and thus is not impacting the total contract amount. The net effect will be fewer hours assigned for Extra Work, which Staff determined will be acceptable based on the anticipated workload. Overall contract amounts per year, including the proposed First Amendment for year four, are provided in Table 4.
Category Rating
Performance of Scope of
Services □ Unsatisfied □ Satisfied Very Satisfied □ N/A Timeliness □ Unsatisfied Satisfied □ Very Satisfied □ N/A Budget Performance □ Unsatisfied □ Satisfied Very Satisfied □ N/A Customer Service □ Unsatisfied □ Satisfied Very Satisfied □ N/A Overall Rating □ Unsatisfied □ Satisfied Very Satisfied □ N/A 3 0
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Table 4: Contract Amount by Year
Item Year 1 Year 2 Year 3 Year 4 Total
Base $350,682 $350,682 $350,682 $393,000 $1,445,046
Extra Work $48,500 $48,500 $48,500 $48,500 $194,000
Total $ 399,182 $ 399,182 $ 399,182 $441,500 $1,639,046 To summarize, based on their contract performance, and vendor evaluation score, staff recommend exercising Abtech’s first one-year extension option. The proposed First Amendment extends the term of the Agreement to July 31, 2025, and increases compensation by $441,500, resulting in a revised contract amount of $1,639,046 (Attachment 2). The proposed First Amendment was prepared by the Finance department and the City Attorney reviewed and approved the amendment as to form.
FISCAL IMPACT:
Sufficient funds are available for the First Amendment in Fiscal Year 2024-25 of the 2023-2025 Operating Budget.
ATTACHMENTS:
1. Agreement with Abtech Technologies for Information Technology support services
2. First Amendment to Agreement
Initiated By: Douglas McBratney, Information Technology Manager Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager