Items 2-3: Draft RCAs — original pdf

Backup

Item 20-2166 Item 2 Posting Language ..Title Authorize negotiation and execution of a multi-term cooperative contract through Staples Contract & Commercial LLC, with Summus Industries Inc. (MBE), to provide office supplies and related services, for up to five years for a total contract amount not to exceed $13,432,500. (Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9D Minority Owned and Women Owned Business Enterprise Procurement Program. For the goods and services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established). ..Body Lead Department Purchasing Office. Client Department(s) All City Departments. Fiscal Note Funding in the amount of $943,667 is available in the Fiscal Year 2019-2020 Operating Budget of various City departments. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Multiple vendors within this cooperative purchasing program were reviewed for these goods and services. The Purchasing Office has determined this contractor best meets the needs of the departments to provide the goods and services required at the best value for the City. Prior Council Action: For More Information: Inquiries should be directed to the City Manager’s Agenda Office, at 512-974-2991 or AgendaOffice@austintexas.gov or to Claudia Rodriquez, at 512-974-2959 or ClaudiaR.Rodriquez@austintexas.gov. Council Committee, Boards and Commission Action: June 8, 2020 – To be reviewed by the Electric Utility Commission. June 10, 2020 - To be reviewed by the Water and Wastewater Commission. Additional Backup Information: The contract will provide a reliable source of office and workplace-related products and services used by various City departments. Staff will have quick and reliable access to products available from the contractor’s online ordering system. The contract will offer a wide variety of office and workplace supplies, including: 100% recycled paper, sustainable desk supplies, toner, and safety supplies. Staples Contract & Commercial LLC warehouses items and delivers orders to over 265 City locations with next day delivery. These goods and related services are provided through a developed strategic alliance with Summus Industries Inc., an independently owned, operated, and City certified minority-owned business. The program enhances the value of services provided to the City through Summus Industries’ customer service, ordering website, delivery tracking, order management, and overall experience in the office supply industry. The Purchasing Office conducted an analysis and determined that the Summus Industries Inc. cooperative contract provides the best value to the City. The analysis included the review of multiple suppliers in the following categories: price comparison, review of sustainability efforts, delivery services, reporting, historically underutilized business partnerships, and online ordering capabilities. The current contract will expire on July 31, 2020 and is utilized by all city departments for daily operations. Estimates for this new contract were determined based on information provided by departments for anticipated future needs and on historical spend. The recommended contractor is the current provider for these goods and services. The Sourcewell cooperative establishes competitively bid contracts that can be utilized by the State and other government agencies through a cooperative agreement. Cooperative agreements save taxpayer dollars by leveraging the State’s volume-buying power to drive down costs on hundreds of contracts through a streamlined cooperative purchasing program. Contract Detail: Contract Term Initial Term Optional Extension 1 TOTAL Length of Term 4 yrs. 1 yr. 5 yrs. Contract Authorization $10,746,000 $ 2,686,500 $13,432,500 Note: Contract Authorization amounts are based on the City’s estimated annual usage. ..Strategic Outcome(s) Strategic Outcome(s): Government That Works for All. City of Austin Recommendation for Action Item 3 301 W. Second Street Austin, TX File #: 20-2305, Agenda Item #: 29. 6/11/2020(cid:4) Posting Language Approve negotiation and execution of an amendment to the Master Service Agreement entered into on December 29, 2017 to include an additional 560 square feet of cage, rack, and support space for a data center supporting Austin Energy for a 66 1/2-month term and to extend CTM’s Master Service Agreement for an additional 26-month term in order to align the terms, for a total amount not to exceed $4,342,291.20. Lead Department Office of Real Estate Services. Fiscal Note This item has no fiscal impact. Prior Council Action: June 8, 2017 - Council approved a 60-month Master Service Agreement. For More Information: Alex Gale, Office of Real Estate Services, (512) 974-1416; Megan Herron, Office of Real Estate Services, (512) 974-5649; Bruce Hermes, Communication and Technology Management, (512) 974-1424; Kerrica Laake, Austin Energy, (512) 322-6013; Dolores Castillo, Austin Energy, (512) 505-3722; Stephen Elkins, Communication and Technology Management, (512) 974-1644 Council Committee, Boards and Commission Action: June 8, 2020 -The Electric Utility Commission will review the 66-month Agreement. Additional Backup Information: The Communication and Technology Management (“CTM”) data center serves both internal and external facing applications. Based on assessments of the data center, CTM recommends expanding within the modern colocation data center. In 2016, CTM contracted with Hewlett Packard Enterprises (“HPE”) to perform an analysis of the local colocation providers, and based on numerous objective criteria, HPE recommended that CTM relocate its data center to space within one of three particular colocation data centers whose redundant power architecture and purpose-built facilities protect against the loss of data connectivity, even in times of natural disaster or catastrophe. On December 29, 2017, CTM entered into a Master Service Agreement with facility for an initial 63-month term, to expire on October 2, 2023. CTM plans to extend the term of the current Master Service Agreement to end coterminous with Austin Energy (“AE”) on December 31, 2025. This amended Master Service Agreement will provide AE with colocation facilities with appropriate space, power, cooling and related services to meet its Data Center requirements for disaster tolerance, IT resiliency and planned disaster recovery initiatives. Moving to a colocation data center facility provides for redundant power architecture, with purpose-built facilities that protect against the loss of data connectivity, even in times City of Austin Page 1 of 3 Printed on 5/29/2020 powered by Legistar™ (cid:5) (cid:6) File #: 20-2305, Agenda Item #: 29. 6/11/2020(cid:4) of natural disaster or catastrophe. The proposed 66 1/2-month extension to the Master Service Agreement will provide AE with power connections to the Greater Austin Area Telecommunications Network and AE Fiber Network. In addition, the Owner will provide AE with dedicated space on site to store, stage, prepare and manage onsite server equipment. The Owner will provide and install cages and rack equipment and will construct any support spaces at an estimated cost of $45,440.00.* The proposed extension will amend, combine, and extend the entirety of the Master Service Agreement, as detailed below for a period commencing June 12, 2020, and expiring December 31, 2025. Future expenses may include a disaster recovery site at another datacenter location. These potential expenses are estimated to occur in years 3-5. The table below illustrates the additional estimated annual costs for the space attributed to AE, through December 31, 2025: Agreement Term Annual Est. Total Rack Space Rent 6/12/2020 - 12/31/2020* $219,440.00 $219,440.00 1/1/2021 - 12/31/2021 $348,000.00 $348,000.00 1/1/2022 - 12/31/2022*** $354,960.00 $354,960.00 1/1/2023 - 12/31/2023*** $769,570.00 $769,570.00 1/1/2024 - 12/31/2024*** $738,600.00 $738,600.00 1/1/2025 - 12/31/2025*** $753,384.00 $753,384.00 Total Amount: + 20% Contingency:** $3,183,954.00 $636,790.80 * - Including estimated cost of equipment purchase and installation, plus construction of the support space. ** - Future expenses may include temporary electricity use increases while transitioning new equipment but before removing old equipment or buildout of new racks or network connection by provider. These potential expenses would be covered by the 20% contingency authorization. *** - Future expenses may include a disaster recovery site at another datacenter location. These potential expenses are estimated to occur in years 3 -5. The table below illustrates the estimated annual costs for the space attributed to CTM: Agreement Term 10/3/2023 - 12/31/2023 1/1/2024 - 12/31/2024 $129,894.00 1/1/2025 - 12/31/2025 $132,492.00 City of Austin Total Amount: + 20% Contingency** Rack Space Rent $31,836.00 $3,600.00 $12,000.00 $47,436.00 Annual Est. Total Support Area Rent Other Expenses $14,400.00 $48,000.00 $14,400.00 $48,000.00 $192,294.00 $194,892.00 Page 2 of 3 $434,622.00 $86,924.40 Printed on 5/29/2020 powered by Legistar™ (cid:5) (cid:6) Rack Space Rent $31,836.00 $3,600.00 $12,000.00 $47,436.00 Annual Est. Total Support Area Rent Other Expenses Agreement Term 10/3/2023 - 12/31/2023 File #: 20-2305, Agenda Item #: 29. 1/1/2024 - 12/31/2024 $129,894.00 1/1/2025 - 12/31/2025 $132,492.00 Total Amount: + 20% Contingency** $14,400.00 $48,000.00 $14,400.00 $48,000.00 $192,294.00 $194,892.00 $434,622.00 $86,924.40 Total RCA Request: $4,342,291.2 0 6/11/2020(cid:4) By utilizing space within a colocation center, other City departments that have information technology equipment in other data centers can be consolidated under one City colocation contract. Participation by other City departments will save both operational, capital and administrative costs. The Strategic Facilities Governance Team reviewed and approved this facility request. Strategic Outcome(s): Government that Works for all. City of Austin Page 3 of 3 Printed on 5/29/2020 powered by Legistar™ (cid:5) (cid:6)