The Water Department will use this Agreement to purchase IBM Maximo software annual maintenance and support services from Mainline Information Systems, Inc,. This maintenance management software is in use in Water Field Operations and Plant Operations and is being implemented in Meter Services.
PRICE ANALYSIS - Prices offered for annual maintenance is approximately one percent higher than the current Agreement awarded on March 29, 2016 (M&C P-11851), due to software enhancements. City staff reviewed this 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 state laws requiring that the local government seek competitive bids for purchase of the item. The State of Texas Department of Information Resources (DIR) Cooperative Contract No. DIR-TSO-3996 has been competitively bid to increase and simplify the purchasing power of local entities.
SUCCESSOR CONTRACTS: To facilitate planning and budgeting, staff would prefer to have annual Agreements that align with the Fiscal Year. However, the DIR Cooperative contract is out of alignment with the City's Fiscal Year and the current term of DIR-TSO-3996 expires May 10, 2020. In order for this Agreement 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 Cooperative contract 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 that a Cooperative Agreement is not renewed, staff would cease purchasing at the end of the last Purchase Agreement coinciding with the valid Cooperative 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-TSO-3996 to make purchases authorized by this M&C. As noted, DIR-TSO-3996 expires May 10, 2020. If the DIR Cooperative contract is extended, this M&C authorizes the City to purchase similar products and services under the extended contract. If the DIR Cooperative contract is not extended, but DIR executes a new cooperative agreement with Mainline Information Systems, Inc. with substantially similar terms as DIR-TSO-3996, this M&C authorizes the City to purchase the products and services under the new DIR Cooperative contract.
AGREEMENT TERM: Upon City Council's approval, this Agreement will commence upon execution by both parties and continue in accordance with the terms and conditions of DIR-TSO-3996 or applicable successive DIR contracts for the same services.
Terms shall be as follows:
Year 1 – December 12, 2018 – May 10, 2019
Year 2 – May 11, 2019 – May 10,2020
Year 3 – May 11, 2020 – May 10, 2021
Year 4 – May 11, 2021 – May 10, 2022
Year 5 – May 11, 2022 – May 10, 2023
RENEWAL OPTIONS - This Agreement may be renewed for three additional annual terms according to DIR-TSO-3996 or applicable successive DIR contracts for the same services agreement at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.
ADMINISTRATIVE CHANGE ORDER – An administrative increase or change order for this Agreement may be made by the City Manager in the amount up to $42,708.00 per year and does not require specific City Council approval as long as sufficient funds have been appropriated.
M/WBE OFFICE – An M/WBE goal is not assigned when purchasing from an approved purchasing cooperative or other public entity.