City Council
Report
City Council Meeting: July 23, 2019
Agenda Item: 3.H
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department, Customer Experience and Support
Subject: Award Request for Proposal (RFP) for Network Operations Center Services Recommended Action
Staff recommends that the City Council:
1. Award RFP#196 to Zones, LLC, a Washington-based company, for Network Operations Center (NOC) and afterhours Service Desk services for the Information Services Department;
2. Authorize the City Manager to negotiate and execute an agreement with Zones, LLC, in an amount not to exceed $2,387,000 (including one-time setup costs, 2% annual cost increases and a 10% contingency of $217,000) for five years, on the same terms and conditions, with future year funding contingent on Council budget approval.
Summary
To better secure and support critical municipal systems, such as those for safety, transportation, traffic, utilities, and others, Information Services Department (ISD) staff recommend establishing a Network Operations Center (NOC) to provide around-theclock monitoring and technical support. ISD provides centralized support services for all automated information and communication systems for the City. Many City functions that serve the public operate on a 24x7 basis, such as Police, Fire, Water, Transportation, and Public Works. Staff seeks approval to enter into a services contract with Zones, LCC to establish the NOC and provide around-the-clock system monitoring and support.
Discussion
For critical systems that must be available 24/7 technology support primarily relies on the knowledge and availability of a single subject matter expert. To mitigate risk exposure and reduce reliance on singular individuals, the City must setup a more 2 of 5
sustainable support structure to ensure operational continuity. This is especially important for effective response to cyber-security incidents. To establish that support structure, ISD recommends the implementation of a Network Operation Center (NOC) function through an established service provider. The NOC will proactively monitor, identify, and respond to technology issues 24x7. This proactive oversight of critical services will enhance security, support, and free-up internal technical resources to focus on maintaining systems and addressing issues before they cause interruptions to City services. Additionally, this same contract will include services for the vendor to provide call center and end user support for City staff in departments that work outside of standard City Hall operating hours, such as Fire, Police, Public Works, and Big Blue Bus; there are currently no such after-hours Service Center services available to staff working outside the City’s regular business hours.
Using an external service provider is a cost effective approach for mitigating risks associated with single subject matter expert resources. Additionally, industry specialized NOC services utilize technical expertise and technologies not available with current City staffing and technology investment levels. The implementation of this service reduces the risk of interruption of critical City services that are provided to the public 24x7. An established NOC vendor provides flexibility in staffing based on fluctuating technology needs of the City. By leveraging its workforce and technologies across multiple clients, such vendors are able to ramp up or down resources as needed to address City technology support needs as they arise.
Method of Service
On January 13, 2015 (Attachment A), Council adopted a Policy for Hiring Contracted or As-needed Staff for Non-professional Services. This policy includes criteria under which contracting for a public service is appropriate. Staff has reviewed the service needs, and recommends providing NOC and after-hours Service Desk services through a contractor due to the following criteria:
Evaluation Criteria Staff Assessment
Risk Service entails risk that significantly increases the City’s 3 of 5
potential liability
Specialized/Technical expertise Service requires technical or special expertise that City staff could not or does not provide, and is outside of core service mission of the department; and,
Workforce Flexibility: Service is seasonal or unpredictable, but requires multiple staff if service is needed. Service continuity relies on large employee pool with numerous and immediately available
backup options. The use of contract services provides the City with an opportunity to redefine or adjust service levels.
Vendor selection
Staff solicited an RFP for NOC and after-hours ServiceDesk (call center) services from multiple established vendors. The services include 24x7 monitoring and proactive response for key application systems and underlying infrastructure; reactive on-call support for key application systems; and after-hours call center services. Staff evaluated all proposals submitted and identified the bidder that can deliver services to the City efficiently and cost effectively, while providing an excellent customer experience to all City staff.
RFP Data
RFP Posting
Date RFP Posted On
RFP Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of Submittals
Received
Date Publicly
Opened
9/24/18 City's Online
Bidding Site
Santa Monica Daily
Press 61 5 10/29/18
RFPs Received Selection Criteria
Zones, LLC InterVision
Systems, LLC Municipal Code SMMC 2.24.190
Smart IMS, Inc. Dell Marketing,
L.P.
Evaluation Criteria Cost of services, experience and technical competence, value added-breadth of service, and stability and
Insight Public references.
Sector, Inc.
Justification to Award
Responses to the RFP were reviewed by a selection panel of staff from the Information Services Department. Staff then shortlisted and interviewed three firms. Based on the evaluation criteria listed above and criteria in SMMC 2.24.190, staff recommends Zones, LLC, as the best qualified firm for Network Operations Center and afterhours Service Desk services. Zones was the lowest bidder and their proposal provides the greatest value for the cost; they provide 24/7/365 Microsoft Office 365 Concierge 4 of 5
support services for Microsoft direct customers and this service will be extended to the City at no additional cost; they are experienced in the area of Network Operations Center services and have mature service delivery processes for end user computing, service desk, and operational monitoring and response; they will leverage the City’s current technology investments for service delivery (ServiceNow) and operational monitoring and control infrastructure; and their proposed solution best aligns with the City’s IT needs in terms of delivering an ITIL structured solution for the City to seamlessly transition to a 24x7 Network Operations Center services model.
Additionally, Zones, LLC has extensive experience managing similar engagements for other agencies, including Warner Media Group, Scotia-Glenville Central School District, and Microsoft. Zones received praise from their references for their exceptional customer service, focus on customer satisfaction, and their commitment to recommend and implement best practices to improve service delivery availability and reliability for their customers.
Financial Impacts and Budget Actions
Staff seeks authority to award an agreement with Zones, LLC for NOC and after-hours Service Desk services.
Agreement Request
Request Amount
FY 2019-20 Budget
Department Account #
Total Contract
Amount
$41,010 C7100030.689000
$284,657 01140001.550010
$60,718 60600002.552010
$5,020 11400001.552010
$384 53160001.552010
$14,004 57500001.552010
$17,937 54500002.552010
$10,120 50500001.552010
$10,120 51500001.552010
$3,006 75300001.552010
$613 70500001.552010
$2,490 59500001.552010
Total $2,387,000
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Future year funding is contingent on Council budget approval.
Prepared By: Sandye Amshen, Customer Experience and Support Manager Approved Forwarded to Council
Attachments:
A. Oaks - Zones