DEPARTMENT: Information Technology Services
DEPARTMENT HEAD: Hugh Miller
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Professional Services Contract for an IT Cost Allocation Model
SUMMARY:
This Ordinance authorizes a professional services contract of up to $51,700.00 with MGT of America, Inc. to provide the Information Technology Services Department (ITSD) with an IT Cost Allocation Model. This contract would be for a period of approximately 14 to 20 weeks, and would terminate upon completion of all deliverables as specified in MGT of America, Inc.'s Statement of Work for IT Cost Allocation Model for IT Services.
BACKGROUND INFORMATION:
In FY 2008, The City of San Antonio's Information Technology Services Department (ITSD), in conjunction with the Office of Management and Budget and the City's Finance Department, developed a distributed IT Cost Allocation Model, that provided an approach for distributing costs for IT provided goods and services.
Presently, ITSD is in the final stages of completing a full consolidation of IT services, through the adoption of a shared services model and IT service catalog that supports the provisions of IT services to all City departments. In light of this effort, the originally developed FY2008 model requires updating, to ensure equitable IT cost distribution, and compliance with State and Federal guidelines, including OMB Circular A-87 standards and applicable FAA Advisory Circulars. Additionally the updated cost allocation model would provide flexibility to adjust assessment amounts to provide IT services based upon fiscal year financial forecasts.
ISSUE:
The IT Cost Allocation Model would provide an industry best practices methodology for: (1) classifying which IT services are to be included in a distributed model, (2) IT services to be charged directly to City Departments, (3) IT total cost of ownership (4) Allocation of future IT costs, and (5) Provide evidence of compliance with State and Federal guidelines.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Small and Minority/ Women-Owned Business Enterprise Prime Contract Program with twenty (20) evaluation preference points. However, no points were awarded to MGT of America, Inc. as they are not a certified SBE and/or M/WBE firm located within the San Antonio Metropolitan Statistical Area.
The Local Preference Program was applied in the evaluation of responses received for this contract; however, the highest ranked firm is not a local business.
The Veteran-Owned Small Business Preference Program does not apply to this contract since it was solicited prior to January 15, 2014, the effective date of the program.
ALTERNATIVES:
As an alternative, if the City Council should choose not to approve this item, IT Service department would be required to continue to rely on the currently used IT Cost Allocation Plan which does not take into account certain unique departmental billing requirements based or adapt changes made by the IT Shared Services model.
FISCAL IMPACT:
Funds in the amount of $51,700 are available in the FY 2014 Information Technology Services Fund Budget.
RECOMMENDATION:
Staff recommends the approval of this contract with MGT of America, Inc. to provide the Information Technology Services Department with professional services in an amount up to $51,700.00. This contract is procured by means of Request for Proposal and a Discretionary Contract Disclosure Form is required.