City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: February 12, 2024
Report #:2309-2072
TITLE
Approval of Contract Amendments with AgreeYa Solutions, INC., Elegant Enterprise-Wide Solutions, INC., Forsys, INC., Object Technology Solutions, INC., Techlink Systems, INC., ZION Cloud Solutions, INC., and Inspyr Solutions, LLC., for IT On-Call Professional Services, to Increase the Combined Annual Not-To-Exceed Amount to $1,250,000 and a Contract Not-To-Exceed total of $3,940,000; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that the Council approve and authorize the City Manager or designee to execute ’Amendment One’ of seven IT General On-Call Professional Services contracts to increase the annual combined not-to-exceed amount from $480,000 annually to $1,250,000 annually across all seven contracts for years 4-5. This brings the new contract not-to-exceed combined amount of all seven contracts to $3,940,000 over a five-year period, to provide department-specific projects and/or solutions. The seven contracts are with:
1) AgreeYa Solutions, INC., C20174582B;
2) Elegant Enterprise-Wide Solutions, INC., C20174582C; 3) Forsys INC., C20174582D;
4) Object Technology Solutions, INC., C20174582E;
5) Techlink Systems, INC., C20174582F;
6) Zion Cloud Solutions, INC., C20174583G; and
7) Inspyr Solutions, LLC, C20174582H (formerly Genuent Global, LLC)
BACKGROUND
In July 2019, staff issued a Request for Proposal (RFP) to identify several qualified firms to provide IT on-call professional services on an as-needed basis to help with day-to-day enhancements, projects, backfills, break fixes, and modernization.
The City Council previously approved these seven contracts for five-years on June 22, 2020, CMR 11360 1.
The time-limited, on-call project support services that staff typically seeks for IT as needed services include, but are not limited, to:
• SharePoint implementation and development projects (building and maintaining) •SharePoint Sites for City departments
• Application software development projects
• System architecture, design, and solution projects
• Cybersecurity projects
• Enterprise data governance projects
• Disaster recovery and business continuity projects (emergency preparedness)
ANALYSIS
The IT Department has had several requests from other departments for temporary on-call contractors to help with specific specialized projects. Such requests include data entry specialists for the Clerk’s Office and the Police Department as well as for Business Intelligence (BI) developers for the Planning Department and Utilities Department. The demand to utilize these contracts from other City departments is continuing to increase. Having the flexibility for staff to use these competitively bid contracts has allowed IT, in partnership with other departments, to quickly review consultant qualifications, onboard them, and have them complete these specialized projects. Without increasing the not-to-exceed amount for these contracts, staff would not be able to complete both IT specific project requests that require temporary on-call resources, but also other City department requests.
Increasing the not-to-exceed amount does not necessarily mean that staff will spend the full amount. The City does not guarantee any minimum quantity of work or compensation with any of these consultants during the contract period.
FISCAL/RESOURCE IMPACT
The FY 2024 Adopted Operating Budget for the Information Technology Department has $380,000 budgeted in the Technology Fund for these on-call contracts annually. Other City departments who leverage these contracts will be using their departmental budget to fund their projects.
Year 1-3 combined Not-To-Exceed: $480,000 annually ($1,440,000).
Year 4-5 combined Not-To-Exceed: $1,250,000 annually ($2,500,000). 1CMR 11360; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020/id-11360.pdf
New combined Years 1-5 contract Not-To-Exceed Total: $3,940,000.
Funding for subsequent contract years will be subject to approval through the annual budget development process. The IT Department is funded by an internal service fund. Approximately 40% of the department is General Fund funded with the remaining 60% funded by enterprise and special revenue funds.
STAKEHOLDER ENGAGEMENT
The services are coordinated with internal stakeholders and the service providers.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because these contracts are for ongoing maintenance activities of the City’s virtual infrastructure and will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(2) and (5).
ATTACHMENTS
Attachment A: C20174582B-H_Amendment 1_IT On-Call Professional Services APPROVED BY:
Darren Numoto, Chief Information Officer