AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH INSIGHT PUBLIC SECTOR, INC., AND APPROVAL OF THE EXPENDITURE OF FUNDS
Staff Contact: Vicki Rios, Interim Director, Finance and Technology
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Insight Public Sector Inc., for a term commencing May 1, 2016 and ending on April 30, 2019, and to authorize the City Manager, at their discretion, to renew the agreement for two additional one-year periods until April 30, 2021. Under the terms of the agreement, Insight Public Sector Inc. (Insight) will provide products and services to the city using a cooperative agreement with U.S. Communities. This request also includes approval of expenditure authority in an approximate amount of $960,000 per year for a total amount not to exceed $4,800,000 over the life of the agreement.
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Background
Maintaining the hardware the city uses on a daily basis is crucial to all city functions and services. Personal Computers (PCs) are used throughout the City in a variety of operational areas. Many are used by employees to perform office tasks and others are used in shared capacities such as classrooms in the GRPSTC training rooms, public PCs in the library, training rooms in the Adult Center and common areas used by police. PCs also serve defined roles such as operating security cameras, engineering workstations and computers used to handle emergency calls (911). The cost of these computers will vary relative to their configuration and intended use. Computer replacement is necessary because equipment fails or exceeds its service life and replacement parts may no longer be available. In some instances, newer business applications will require the latest hardware as a prerequisite for proper operation. Due to the reduced replacement fund budget that occurred in previous budget years, a significant number of pieces of equipment currently in use need to be replaced over the next five years. That equipment includes PCs, laptops, printers, servers and other devices required for city operation.
The approval of this expenditure request enables the Finance and Technology Department to quickly order replacements for non-functioning equipment. Insight is a provider of technology, software, hardware, software maintenance, support and technical services, and the city is able to purchase from them and receive favorable pricing through cooperative purchasing with U. S. Communities.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
On April 30, 2016, Insight’s current cooperative purchasing agreement with U.S. Communities will expire. Through a formal bid process, Insight has been awarded the new U.S. Communities contract, effective May 1, 2016.
Insight is a large volume supplier and provides a wide array of products and services at lower contract pricing when compared to other vendors. Based on their product breadth and pricing, the city can continue to purchase products and services from Insight, through a new Linking Agreement in line with the current cooperative purchasing agreement.
If approved, the annual expenditure amount with Insight for this contract will be consolidated under this council request and will be approximately $960,000 per year and will not exceed $4,800,000 over the life of the contract. The expenditure authorization being requested is budgeted and paid from the Technology Fund and no additional funding is being requested.
Previous Related Council Action
On 10/22/2013, City Council approved the Linking Agreement (C-8671) with Insight Public Sector, Inc., and expenditure authority in the amount of $500,000 per year.
On 04/14/2015, City Council approved an amendment to Linking Agreement C-8671 to increase expenditure authority in the amount of $460,000 per year; totaling $960,000 per year for each of the two remaining fiscal years.
Community Benefit/Public Involvement
Maintaining the city’s computer programs and hardware systems helps ensure services can be provided to the public efficiently while minimizing system downtime. Purchasing from cooperative contracts provides both competitive pricing for equipment and services.
Budget and Financial Impacts
The amount budgeted in the Technology Replacement Fund will fluctuate based on annual budget capacity and replacement needs. It is estimated to be $960,000 per year.
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Cost |
Fund-Department-Account |
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$960,000 |
2591-18401 (521000 or 551400 or other account lines as needed), Technology Replacement Fund and/or 2591-18402-522700, Information Technology Department |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?