REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Enter Into Multi-year Agreements for Contingency Staffing and Professional and Technical Contracted Services for the Information Technology Department (F17-049 and F17-050)
Report
REPORT IN BRIEF
Approval is requested to authorize the City Manager to enter into multi-year contracts exceeding $100,000 in support of quickly and efficiently addressing strategic investments in Information Technology infrastructure, as explained below, not-to-exceed budgeted amounts.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, Council approval is required to award contracts greater than $100,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
During its January 2016 Strategic Planning Workshop, Council established a Policy Priority for Improved Processes and Services through the use of Technology and followed this action with a March 2016 Study Session to review the current state of technology needs in the organization, as well as identify the core systems that require upgrading or replacement. Council subsequently approved $15.7 million in funding to support this policy priority with the adoption of the FY 2016/17 Budget. This investment by Council allows staff to focus resources where they can best support the organization as it prepares for and implements several major technology projects.
In support of this important priority, staff is currently conducting Request for Qualifications (RFQL) processes to prequalify several firms and establish multiple as-needed contracted consulting services and contingency staffing contracts. For any specific need, staff will issue a competitive procurement to obtain the best pricing or best overall value. Some of these contracts, though, may exceed the City Manager’s contract approval authority. Therefore, staff is recommending that Council authorize the City Manager to award contracts exceeding $100,000. This will help ensure that when focused resources are needed and available, the organization already has contracts in place to quickly anticipate, adapt and respond to any changing priorities that regularly occur during technology projects.
It should be noted that the City has previously utilized prequalification processes similar to the process recommended in this report, in order to more quickly respond to the City’s needs. For example, during the Sunnyvale Works! local economic stimulus program which began following the Great Recession, staff conducted a mass prequalification effort to establish lists across fifteen different service categories, creating efficiencies to design and construct public works infrastructure.
Contingency Staffing
Historically, the City of Sunnyvale's Information Technology Department has contracted for staff augmentation or backfill of professional and technical services through a single vendor. Depending on the dollar amount, this process required Council approval for each vendor and the selection was based on the single vendor's available resources. Providing for a pool of qualified vendors would allow the Department to gain flexibility for the timely hiring of the resources needed meet operational or project needs.
Establishing a pool of firms through a Request for Qualifications (RFQL) process will allow the City to identify temporary staffing needs to a list of pre-qualified companies to quickly solicit proposals and establish contracts which best meet the City’s immediate needs. With each request, the pre-qualified vendors will have two weeks to respond with qualified candidates and rates for the City to select the best available resource in a timelier manner.
Professional and Technical Contracted Services
The City's Information Technology Department has a need to quickly implement IT systems and new technology while maintaining and upgrading over 100 applications within the next three years. Implementation projects or initiatives include: Enterprise Resource Planning (ERP), Permit Planning, Geographic Information Systems (GIS), Computer Aided Dispatch (CAD), Service Desk/IT Service Management System, Network/Security/Risk Assessment and IT Strategic Plan.
The creation of a pool of qualified firms for project-based IT services would allow the department to be able to respond with consulting expertise, as needed, within a few weeks at a competitive rate. Similar to the approach for contingency staffing, the RFQL conducted for contracted consulting services will generate a pre-qualified list of vendors who would have the opportunity to respond to requests from the City and provide a Statement of Work (SOW), timeline, resource plan (internal and external), and cost. This will expedite the process in order to meet the rapidly changing needs in technology.
FISCAL IMPACT
Budgeted funds are available in the Information Technology Equipment Technology allocation for project-related work and operations allocation in the General Services, Technology and Communications Services sub-fund. The recommendation included in this report recommends funding these contracts not to exceed annual budgeted amounts over the term of the contract or a period of five years.
Funding Source
The recommended contracts would be funded through the operations allocation in the General Services, Technology and Communication Services sub-fund. These costs are allocated out to other funds through Information Technology internal service charges to all operating programs in the City.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to award multi-year contracts in excess of $100,000 for contingency staffing and professional and technical contracted services for the Information Technology Department, not-to-exceed budgeted amounts or a period of five years.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Kathleen Boutte Foster, Director of Information Technology
Reviewed by: Teri Silva, Director of Human Resources
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager