FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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COOPERATIVE PROCUREMENT AGREEMENTS
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Authorize the purchasing of information technology products, services, and solutions utilizing Cooperative Procurement Agreements (CPA) such as, but not limited to, OMNIA Partners Public Sector (formerly U.S. Communities), NASPO ValuePoint, and U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award Schedule (MAS) for the period January 1, 2023 through December 31, 2023 for a total amount not to exceed $2,000,000, in accordance with Ordinance No. OCSD-56, Section 2.03(B) Cooperative Purchases, with two (2) one-year renewal options.
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BACKGROUND
The Orange County Sanitation District (OC San) desires to utilize the CPA as providers of technology products, services, and solutions. The CPAs are needed to provide technology solutions based on competitive contract pricing, breadth of product offerings, availability, and the ease of using online ordering systems. Large capital items will be procured through the bidding process and all purchases continue to follow the existing approval and procurement processes in accordance with OC San’s Purchasing Ordinance. These CPAs provide deep discounts not normally available through OC San’s bid process.
To properly maintain and provide solutions to OC San’s facilities, the Information Technology (IT) division has a need to purchase technology products, services, and solutions. Such item requirements have been forecasted based upon projected obsolete equipment, historical product failure rates, and new items to address general capacity, redundancy, or security. Since technology changes frequently, it is not appropriate to stock these items in OC San’s warehouses.
IT currently uses vendors providing technology items and recurring maintenance support and services using GSA Schedule 70/ GSA Multiple Award Schedule (MAS) Contract, NASPO ValuePoint, and OMNIA Partners Public Sector (Formerly known as U.S. Communities Government Purchasing Alliance). Purchases include:
• Networking and telephony equipment
• Servers and desktop computers
• Data storage and backup appliances
• Software licenses and maintenance agreements
• Consulting services
• Disaster recovery and cyber security solutions
• Printers, scanners, and monitors
• Computer peripherals
• Uninterruptible power supply components
Example OMNIA Partners Public Sector contracts include:
• Insight Public Sector Contract: Technology Products, Services and Solutions - Contract Number: 4400006644, Lead Agency: County of Fairfax, Virginia
• Graybar Contract: Electrical, Lighting, Data Communications and Security Products and Related Products, Services and Solutions- Contract # EV2370, Lead Agency: City of Kansas City, MO
Example NASPO ValuePoint contracts include:
• Cisco Contract # AR3227 with multiple contract holders for Data Communications, Lead Agency: State of Utah
• HP, Inc.: Computer Equipment, Peripherals & Related Services - Master Agreement Number: MNNVP-133, Lead State: Minnesota
Example U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award Schedule (MAS) include:
• e-Plus Technology, Inc. Contract: Internet Security, LAN/WAN, Project Mgmt., System Design, System Implement, System Integration, System Management, System Security, etc. Brands: IT Consult, IT Service, IT Training- Contract Number: GS-35F-0673N
• EC America Contract: Various Software, Services and Hardware-Contract Number: # GS-35F-0511T
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Participate in local, state, and national cooperative purchasing programs
• Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
The procurement process for information technology items and services for OC San involves many efforts and associated costs. IT and Purchasing work diligently in finding ways to streamline the procurement process while minimizing cost concomitant of the procurement of technology items.
PROPOSED SOLUTION
OC San’s purchasing power is limited, therefore, utilizing other large agencies’ cooperative agreement(s) who have completed a vetted procurement process is a viable and economical solution.
TIMING CONCERNS
Maintenance and deployment of new systems and solutions is imperative for continued support of plant operations and maintenance initiatives without delay.
RAMIFICATIONS OF NOT TAKING ACTION
Risk of being unable to maintain/deploy or delay IT projects supporting plant operations and maintenance. Increased costs related to the procurement of technology items.
PRIOR COMMITTEE/BOARD ACTIONS
October 2019 - Board authorized the purchasing of information technology products, services, and solutions utilizing Cooperative Procurement Agreements (CPA) from U.S. General Services Administration (GSA) IT Schedule 70, National Association of State Procurement Officials ValuePoint Cooperative Purchasing Organization, and OMNIA Partners, Public Sector (formerly U.S. Communities) for the period January 1, 2020 through December 31, 2020 for a total amount not to exceed $2,000,000, in accordance with Ordinance No. OCSD-52, Section 2.03(8) Cooperative Purchases, with two (2) one-year renewal options.
ADDITIONAL INFORMATION
The State of California Procurement Division is the central purchasing authority for all State departments and local government agencies. With a massive marketplace and billions of dollars in purchasing power, they can offer a lower procurement cost to California's State, county, city, special district, education, and other government entities through their Leveraged Procurement Agreements (LPAs). LPAs <http://www.dgs.ca.gov/pd/Programs/Leveraged.aspx> allow entities/agencies to buy directly from suppliers through existing contracts and agreements. Upon utilization of each contract under these LPAs, OC San staff verifies competitiveness of pricing based upon volume purchasing through these cooperatives.
CEQA
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FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital Program (M-MC-IT)).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
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