M&C Review


COUNCIL ACTION:  Approved on 10/10/2017 

DATE: 10/10/2017 REFERENCE NO.: **P-12110 LOG NAME: 13P17-0502 MDC REFRESH SB ITS
CODE: P TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of Lease Contract for Mobile Data Computers with Dell Marketing, L.P., for a Five-Year Cost Up to $6,342,671.70 and Authorize Execution of a Managed Services Contract for Implementation Services, Maintenance and Support Services with GTS Technology Solutions, Inc., for a Five-Year Cost Up to $899,672.33, Using Cooperative Contracts for the Information Technology Solutions Department (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council:

1.  Authorize execution of a lease contract for mobile data computers with Dell Marketing L.P., for a Five-Year Cost up to $6,342,671.70 using the State of Texas Department of Information Resources Contract DIR-SDD-1951.

2.  Authorize Execution of a Managed Services Agreement for implementation services, maintenance and support services with GTS Technology Solutions, Inc. for a Five-Year Cost up to $899,672.33 using State of Texas Department of Information Resources Contract DIR-TSO-3655.

Year One payments will be funded from the Crime Control Prevention District, Transportation and Public Works Stormwater Utility Fund and Information Technology Solutions Capital Program Refresh Funding.  Lease Agreement Refresh payments for Year Two, Three, Four and Five have planned  funding from the Crime Control Prevention District, Transportation and Public Works Stormwater Utility Fund and Information Technology Solutions Capital Program Refresh.  Managed Services Contract payments will be allocated to the participating departments as part of the annual Information Technology Solutions allocation based on the number of devices assigned to each department.  

The annual payments are:

Lease Purchase Refresh

Managed Services

Year 1

$1,268,534.34

$121,577.33

Year 2

$1,268,534.34

$194,523.75

Year 3

$1,268,534.34

$194,523.75

Year 4

$1,268,534.34

$194,523.75

Year 5

$1,268,534.34

$194,523.75

Total

$6,342,671.70

$899,672.33

  




 
DISCUSSION:

The Lease Contract is turnkey and includes warehousing, imaging, asset tagging, configuration of cellular routers and complete installation services.  The Information Technology Solutions Department will use this lease contract to replace the existing 1,251 mobile data computers with new ruggedized laptops for the Police, Fire, Transportation and Public Works, Planning and Development, Code Compliance and Property Management Departments.

The Managed Services Contract is for total life cycle support for the mobile data computers to include:  break-fix, spare parts, management of repairs and warranty claims.  On-going supporting maintenance will be allocated to the benefiting departments through their ITS budget allocation process.

PRICE ANALYSIS - The Department of Information Resources (DIR) contract offers fixed discounts ranging from 3 to14 percent less than Dell's current retail price list.  Staff reviewed the pricing and determined it to be fair and reasonable.

COOPERATIVE PURCHASE - State law provides that a local government purchasing an item under a cooperative purchasing Agreement satisfies any state law requiring that the local government seek competitive bids for purchase of the item.  The Department of Information Resources (DIR) contract was competitively bid to increase and simplify the purchasing power of government entities across the State of Texas.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because  the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.

SUCCESSOR CONTRACTS - To facilitate planning and budgeting staff would prefer to have annual Agreements that align with the Fiscal Year.  However, the DIR Agreement is out of alignment with the City's Fiscal Year and its current term will expire January 9, 2018.  In order for this purchase to align with the City's Fiscal Year, adoption of this M&C technically authorizes (i) a series of purchase Agreements, each of which will align to a term of the DIR Agreement to ensure legal authority exists for the contract and (ii) an annual spend amount, future years of which would be subject to City Council appropriation.  In the event the DIR Agreement is not renewed, staff would cease purchasing at the end of the last purchase Agreement coinciding with a valid DIR Agreement.  If the City Council were to not appropriate funds for a future year, staff would stop making purchases when the last appropriation expires, regardless of whether the then-current purchase Agreement has expired.

The City will initially use DIR Contract  DIR-SDD-1951 and DIR-TSO-3655 to make purchases authorized by this M&C.  As noted, that DIR-SDD-1951 agreement expires on January 9, 2018 and DIR-TSO-3655 expires November 29, 2020.  If DIR Contract DIR-SDD-1951 and DIR-TSO-3655 is extended, this M&C authorizes the City to purchase similar equipment and supplies under the extended contract.  If DIR Contract DIR-SDD-1951 and DIR Contract DIR-TSO-3655 is not extended but DIR executes a new cooperative contract with Dell and with substantially similar terms as  DIR-SDD-1951and DIR-TSO-3655, this M&C authorizes the City to purchase the equipment and supplies under the new DIR contract.

AGREEMENT TERM - Upon City Council's approval, the Agreements will commence upon execution and continue for five-years to expire in accordance with the terms and conditions of DIR Contract No. DIR-SDD-1951 and DIR-TSO-3655 or applicable successive DIR contracts for the same services.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating and capital budgets, as appropriated and that prior to an expenditure being made, the Information Technology Solutions Department has the responsibility to validate the availability of funds.  Due to the nature of the structure of the lease with Dell, this financing is classified as a debt offering and will be tracked as City's general ledger according to applicable debt financing guidelines.

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FROM
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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
Cythnia Garcia (8525)
Sheila Baker (8356)

 
 
ATTACHMENTS
  Dell Finincial 1295 Certificate 2017.pdf
  GTS Technology 1295 for MDC project 9-15-2017.pdf