TO: HONORABLE MAYOR FROM: Rick Bruneau
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: October 10, 2023
Approved Date
10/16/23
SUBJECT: AMENDMENT TO THE AGREEMENT WITH SHI INTERNATIONAL
CORPORATION FOR INFORMATION TECHNOLOGY
INFRASTRUCTURE REFRESH PROJECT
RECOMMENDATION
Adopt a resolution authorizing the City Manager or designee to negotiate and execute the Second Amendment to the Agreement with SHI International Corporation (Somerset, NJ) for an Infrastructure Refresh Project to add hardware, storage, and related professional services to replace the San José Police Department’s current virtual machine server environment, for an increase in compensation of $674,334, inclusive of applicable sales tax, and a revised maximum compensation of $3,705,874 for the five-year initial term ending December 31, 2023.
SUMMARY AND OUTCOME
Authorizing the City Manager or designee to take this action provides the San José Police Department with an updated, more reliable virtual machine server environment for its records management system.
BACKGROUND
In October 2019, the City entered into an Agreement
1 with SHI International Corporation (SHI)
for a City Information Technology Refresh Project with a maximum compensation of $2,146,830. The Agreement was awarded based on a competitive solicitation process and
1 SHI Agreement
https://records.sanjoseca.gov/Pages/Search.aspx?k=ContentType%3AContracts%20ContentType%3AContractsItem s%20ContractNumberOWSSTR%3A665284*
COUNCIL AGENDA: 10/31/23
FILE: 23-1455
ITEM: 2.8
HONORABLE MAYOR AND CITY COUNCIL
October 10, 2023
Subject: Amendment to the Agreement with SHI International Corporation for Information Technology Infrastructure Refresh Project
approved by City Council in December 2018.2 Staff subsequently executed three change orders for unanticipated changes in products and services utilizing a total of $330,222 in available contingency funds and resulting in a revised maximum compensation of $2,477,052. In August 2022,3 City Council authorized staff to negotiate and execute the First Amendment to the Agreement to add hardware, software, licensing support to the agreement to complete disaster recovery and high availability functionality and deploy a hyper-converged infrastructure at the City’s Emergency Operations Center. The executed First Amendment increased compensation by $554,488 for a revised maximum compensation of $3,031,540. The agreement is currently in its initial term, which ends December 31, 2023, and includes five options to extend through December 31, 2028.
The San José Police Department utilizes a virtual machine cluster, a collection of virtual servers that offer high-quality performance, high availability, and simplified data management to support its records management system. The records management system allows police officers to write and store reports electronically and automates aspects of case management. The current San José Police Department virtual machine cluster is now at end of life and no longer meets the San José Police Department data storage and processing requirements necessary to maintain operations.
ANALYSIS
During the 2023-2024 fiscal year budgeting cycle, the San José Police Department obtained a budget appropriation to replace its obsolete virtual machine cluster. To expedite the purchase and provide consistency in technology across the City, staff recommends leveraging the City’s existing agreement with SHI to purchase the equipment, software, and services required to replace the San José Police Department’s existing virtual machine cluster.
Approval of this recommendation will authorize staff to negotiate and execute the Second Amendment to the existing agreement with SHI to replace the San José Police Department virtual machine cluster under the same material terms and conditions as the original agreement, which will provide improved system performance, reliability, and security, and reduce staff time required to support the current obsolete system.
`
EVALUATION AND FOLLOW-UP
This memorandum will not require any follow-up from staff.
2 December 2018 City Council memorandum:
https://sanjose.legistar.com/View.ashx?M=F&ID=6826655&GUID=0AA53587 -7766-465A-AF44-EB4958EFC7E6 3 August 2022 City Council memorandum:
https://sanjose.legistar.com/View.ashx?M=F&ID=11099016&GUID=B2D12957- ED73-41E5-8804- A4565ADE90C3
HONORABLE MAYOR AND CITY COUNCIL
October 10, 2023
Subject: Amendment to the Agreement with SHI International Corporation for Information Technology Infrastructure Refresh Project
COST SUMMARY/IMPLICATIONS
The agreement recommended in this memorandum will be funded by the existing General Fund appropriation. The following outlines the cost elements for this recommendation and impact to the overall agreement not to exceed amounts.
1. AMOUNT OF RECOMMENDATION $674,334
2. COST ELEMENTS
• Hardware 282,808
• Software 204,535
• Services (maintenance and support/ warranty) 186,991
Subtotal Second Amendment $674,334
Current SHI Contract Not to Exceed 3,031,540
REVISED SHI CONTRACT NOT TO EXCEED $3,705,874
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memorandum.
Fund
#
Appn
# Appn. Name
Current
Total
Appn
Amt. for
Contract
2023-2024
Proposed
Operating
Budget Page*
Last Budget
Action (Date,
Ord. No.)
001 0502 Non-Personal /
Equipment
$22,954,500 $674,334 684 06/20/2023,
Ord No.
30933
*The 2023-2024 Adopted Operating Budget was approved on June 13, 2023 and adopted on June 20, 2023 by City Council.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, and San José Police Department.
PUBLIC OUTREACH
The memorandum will be posted on the City’s Council Agenda website for the October 31, 2023 City Council meeting.
HONORABLE MAYOR AND CITY COUNCIL
October 10, 2023
Subject: Amendment to the Agreement with SHI International Corporation for Information Technology Infrastructure Refresh Project
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
RICK BRUNEAU
Director of Finance
For questions regarding the procurement and contract, please contact Albie Udom, Deputy Director of Finance – Purchasing and Risk Management, at [email protected]. For program-related questions, please contact Judith Torrico, Deputy Director – San José Police Department, at [email protected].