DEPARTMENT: Information Technology Services
DEPARTMENT HEAD: Craig Hopkins
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Contractual Capacity and Authorization to Continue to Utilize State of Texas DIR Contracts in an amount up to $51,322,058
SUMMARY:
This action will build contractual capacity and authorize the City to continue to utilize the State of Texas Department of Information Resources (DIR) contracts, which was originally approved by Council under Ordinance 2009-11-19-0904 (and as amended by Ordinance 2011-10-20-0851, 2013-01-10-0014, 2015-03-12-0179, 2016-06-30-0527, 2017-11-09-0893, 2019-04-04-0280, 2020-04-16-0272) to provide the City with information technology (IT) hardware, software, professional and technical services, telecommunication services, and maintenance and support services for an additional amount of up to $51,322,058.
BACKGROUND INFORMATION:
The State of Texas Department of Information Resources (DIR) provides a portfolio of contracts for information technology products and services with competitively bid pricing. The DIR contracts are awarded in accordance with all state procurement laws and rules applicable to Texas state agencies. In addition, all proposed contracts are reviewed in accordance with the City’s Small Business Economic Development Advocacy Ordinance before any contract award is finalized. By utilizing these DIR contracts, the City has been able to leverage the purchasing power of the State of Texas and has realized cost and resource savings, and other efficiencies, while procuring information technology products and services. These efficiencies include consistent contract terms and conditions, reduced solicitation and negotiating time, and consistency in the products and services available. This ordinance will also reduce the procurement lead times associated with technology purchases since these contracts have previously been awarded in accordance with State technology guidelines and each contract will not have to be individually scheduled for City Council consideration. As a result, the City will continue to be able to better take advantage of seasonal promotional offers and discounts that are frequently offered throughout the year for short periods of time.
The City has utilized this DIR process since 2009. Most recently, City Council authorized an ordinance on April 16, 2020 for an additional $22.3 Million for hardware; software; professional and technical services; telecommunication services; and maintenance and support services. Submitted for City Council consideration and action is the request to continue to utilize the State of Texas Department of Information Resources (DIR) contracts to provide the City with information technology (IT) hardware, software, professional and technical services, telecommunication services, as well as maintenance and support services for an additional amount up to $51,322,058.
These DIR contracts will be utilized in IT capital projects, public safety capital projects, various departmental capital projects and telecommunication services. Additionally, the DIR contracts will be utilized for business systems and equipment and includes items such as software and equipment maintenance and support, business service transformation, business system enhancements, as well as essential replacement and modernization. All expenditures under the DIR Contracts will be made in accordance with the City’s adopted operating and capital budgets.
All technology procurements citywide are coordinated through ITSD and the IT Governance Board (Deputy City Manager, Chief Financial Officer and Chief Information Officer) and undergo a technology review to ensure compliance with adopted information technology standards, compatibility with existing systems and alignment with the City’s information technology portfolio.
ISSUE:
This action will provide ITSD with contractual capacity and authorization to continue to utilize all State of Texas Department of Information Resources (DIR) contracts for the purchase of information technology (IT) hardware, software, professional and technical services, telecommunication services, as well as maintenance and support services.
Pursuant to Texas Government Code § 2054.0565, the City is not required to conduct its own competitive bidding when utilizing contracts procured by Texas Department of Information Resources.
ALTERNATIVES:
Should this action not be approved, ITSD would return to the process of bidding individual contracts and presenting these contracts to City Council for the purchase of information technology equipment, software, and services on a single procurement basis.
This will significantly lengthen the procurement processes and limit the City’s ability to obtain the most favorable terms, conditions, and pricing during the fiscal year through consolidation of purchases, taking advantage of promotional offers, and negotiating the best value with vendors awarded contracts through DIR.
FISCAL IMPACT:
Funds are not encumbered by this ordinance. All expenditures will be in accordance with the City’s adopted capital and operating budgets approved by City Council. The expenditures through DIR contracts approved by this ordinance are not to exceed $51,322,058. Purchases made by departments are as needed and dependent upon available funds within their adopted budgets.
The $51,322,058 will be spent in the following categories: IT capital projects, departmental projects, bond projects, IT hardware, software, professional and technical services, telecommunication services, as well as maintenance and support.
Operating and maintenance purchases are needed to update and maintain the City’s IT hardware and software assets. Furthermore, this ordinance will provide authorization to utilize DIR contracts to replace desktop and notebook computers, computer accessories, and other operating and maintenance items planned for FY 2021.
RECOMMENDATION:
Staff recommends approval of this action to allow ITSD to continue utilizing the supply and service contracts awarded by the State of Texas Department of Information Resources for the purchase of information technology (IT) hardware, software, professional and technical services, telecommunication services as well as maintenance and support in an amount not to exceed $51,322,058.