CITY OF
LONG
February 8, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Technology and Innovation Department
411 West Ocean Boulevard, 7th Floor Long Beach, CA 90802 (562) 570-6455
C-15
Adopt a Resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Kyndryl Holdings, Inc., of New York, NY, for disaster recovery technology services, in a total annual amount not to exceed $149,266, for a period of one year, with the option to renew for four additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Kyndryl Holdings, Inc. (Kyndryl), for the purchase of disaster recovery technology services.
On September 14, 1999, the City Council approved the updated terms and conditions to the 1989 Master Purchase Agreement with International Business Machines Corporation (IBM) for the purchase of products and managed services until such time as IBM or the City terminates the contract. The Technology and Innovation Department has purchased services from IBM under this Master Purchase Agreement for disaster recovery technology services.
On May 26, 2021, the Technology and Innovation Department was notified that IBM was transitioning its Managed Infrastructure Services business into a new public company, Kyndryl. The two companies will continue to work together as Kyndryl will remain IBM's preferred partner for infrastructure. Meanwhile, the Technology Support Services business of IBM will remain an integral part of IBM. Kyndryl will continue to design, run, and manage the modern and reliable technology infrastructure that the City of Long Beach (City) had previously been implementing under the Master Purchase Agreement with IBM and the City will continue to receive the same solutions and support directly from Kyndryl.
The terms of the original Master Purchase Agreement with IBM will remain in effect and only the services provided in Transaction Document 31 will be transferred to Kyndryl.
Kyndryl has agreed to assume all of the contractual oblications under the same terms and conditions provided under the IBM agreement so there will be no interruption to the disaster recovery technology services that the City relies on.
HONORABLE MAYOR AND CITY COUNCIL
February 8, 2022
City Charter 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process but allows for awards without a competitive bid process when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on January 21, 2022, Business Services Bureau Manager Tara Mortensen on January 11, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on January 17, 2022.
TIMING CONSIDERATIONS
City Council action is requested on February 8, 2022, to ensure the new contract assignment is executed expeditiously.
FISCAL IMPACT
The requested action will allow the City to enter into a contract with Kyndryl for disaster recovery technology services previously provided by IBM. Sufficient funding is budgeted in the General Services Fund Group in the Technology and lnnnovation Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
~£-
LEAD. ERIKSEN
DIRECTOR OF TECHNOLOGY AND INNOVATION
Attachment: Resolution
APPROVED:
THOMAS 8. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT WITH KYNDRYL,
INC., WITHOUT ADVERTISING FOR BIDS, TO PROVIDE
DISASTER RECOVERY TECHNOLOGY SERVICES , IN A
TOTAL ANNUAL AMO UNT NOT TO EXCEED $ 149,266,
FOR A PERIOD OF ONE YEAR, WITH THE OPTION TO
RENEW FOR FOUR ADDITIONAL ONE-YEAR PERIODS AT
THE DISCRETION OF THE CITY MANAGER
WHEREAS, in 1989, the City entered into a Master Purchase Agreement with International Business Machines Corporation (IBM); and
WHEREAS, in 2020, using the Master Purchase Agreement with IBM, the City purchased information technology recovery services (Transaction Document No. 31) provided in their Boulder, CO facility; and
WHEREAS, this facility houses the City’s entire back -up assets for its Windows servers, Linux servers, and the City mainframe; and WHEREAS, on May 26, 2021, the City was notified that IBM was transferring its managed infrastructure services business to a new public company, Kyndryl; and WHEREAS, only the services provided in Transaction Document 31 to the IBM Master Purchase Agreement will be transferred to Kyndryl; and WHEREAS, Kyndryl has agreed to assume all of the contractual obligations under the IBM Master Purchase Agreement so there will be no interruption to the disaster recovery technology services City relies on; and
WHEREAS, sustaining the City’s mainframe and this back -up location remains necessary and has extended beyond initial forecasts due to delays in the Munis
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
implementation; and
WHEREAS, significant monetary investment, architecture, and physical testing of the back -up location for the mainframe prevents the City from moving back -up data assets from this location and vendor to a new location and/or vendor; and WHEREAS, as such, no useful purpose would be served by advertising for bids and to do so would constitute an idle and useless act and an unnecessary expenditure of public funds;
NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The City Manager is hereby authorized to enter into a contract, without advertising for bids, with Kyndryl, Inc. for providing disaster recovery technology services in a total annual contract amount not to exceed One Hundred Forty-Nine Thousand Two Hundred Sixty-Six Dollars ($149,266), for a period of one (1) year, with the option to renew for four (4) additional one -year periods at the discretion of the City Manager. If the sole source status of Kyndryl, Inc. changes, City shall publicly bid instead of extending the contract.
Section 2. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ///
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of ________________________________, 2022 by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk