Explanation
BACKGROUND:
On June 3, 2024, the Columbus City Treasurer’s Office entered into a contract with OST, Inc. for IT staff augmentation services under the State of Ohio’s IT Staff Augmentation Contract (State Term Schedule). This contract was authorized by Ordinance No. 1464-2024 to provide internal project support for the Treasurer’s transition from Huntington National Bank to JP Morgan Chase Bank.
As part of this transition, the Treasurer’s Office is responsible for coordinating on-boarding activities across numerous City agencies, many of which use third-party software to conduct payment transactions. The transition has required expert assistance in the areas of technical project management, systems integration, business process documentation, and solution design. While JP Morgan Chase provides its own technical staff for the implementation, the Treasurer’s Office requires internal resources to manage and coordinate the City’s side of the implementation.
The selection of a contractor through OST for ongoing support was delayed due to the extensive on-boarding and configuration efforts involved in the new JP Morgan Chase banking environment. The Treasurer’s Office has now engaged a business analyst to memorialize and document the full scope of implementation activities to support transparency and institutional learning.
This ordinance authorizes the extension of the current OST contract from June 3, 2025, through June 2, 2026. No additional funding is requested at this time. The extension ensures uninterrupted support for the final stages of the Treasurer’s banking and merchant services implementation.
1.1 Amount of additional funds to be expended:
$0.00 (No additional funds needed at this time)
1.2 Reasons additional goods/services could not be foreseen:
The need to extend the contract is directly tied to the length and complexity of the City’s implementation of new banking and payment gateway solutions with JP Morgan Chase. The original project scope anticipated that agency transitions would occur incrementally, but the actual timeline was affected by the coordination required across multiple departments, systems, and software environments. These factors delayed the procurement of a new contractor under the OST schedule, necessitating an extension of the current agreement.
1.3 Reason other procurement processes are not used:
OST, Inc. was originally selected through a competitive process under the State of Ohio’s cooperative purchasing program. The State IT Staff Augmentation Contract remains the most effective method to obtain specialized technical resources for this effort. The Department of Technology was consulted but was unable to provide the needed support. Using the existing OST contract avoids service disruption and ensures continuity in the Treasurer’s ongoing modernization efforts.
1.4 How cost of modification was determined:
No new funds are being authorized. The contract extension does not require additional expenditures beyond those already appropriated in the City Treasurer’s current budget.
EMERGENCY DESIGNATION:
This ordinance is submitted as an emergency to ensure uninterrupted support for the City’s banking and gateway modernization activities. Any lapse in services could delay merchant on boarding or compromise the Treasurer’s ability to support citywide revenue collection efforts.
FISCAL IMPACT:
There is no fiscal impact at this time.
Contract Compliance: OST, Inc., Vendor #042892, Contract Compliance #522175314, expiration 8/31/2024.
Title
To authorize the City Treasurer to extend its contract with OST, Inc., the current State of Ohio’s IT Staff Augmentation Contract provider, through June 2, 2026, for continued support of banking and merchant service implementations; and to declare an emergency. ($0.00)
Body
WHEREAS, the City Treasurer’s Office entered into a contract with OST, Inc. for IT staff augmentation services authorized by Ordinance No. 1464-2024, with a term from June 3, 2024, through June 2, 2025; and
WHEREAS, the City continues to require technical support for its transition to JP Morgan Chase Bank and the citywide implementation of new merchant gateway services, which remain critical to the City's revenue collection operations; and
WHEREAS, the Treasurer’s Office experienced delays in initiating a new procurement under the OST program due to the time-intensive nature of banking and systems integration efforts required for citywide on boarding; and
WHEREAS, a business analyst has now been assigned to document and memorialize the implementation process, and the Treasurer’s Office continues to require continuity of IT support as the City completes this transition; and
WHEREAS, OST, Inc. was originally selected through a competitive process under a cooperative state contract, and the Department of Technology has confirmed it cannot provide the necessary technical resources; and
WHEREAS, it is in the City’s best interests to extend the current agreement with OST, Inc. under the State of Ohio’s cooperative contract without issuing a new solicitation; and
WHEREAS, no additional funds are required at this time and existing appropriations within the City Treasurer’s budget are sufficient to support the extension of services; and
WHEREAS, an emergency exists in the usual daily operation of the Office of the City Treasurer in that it is immediately necessary to authorize this contract extension to preserve the continuity and effectiveness of the City’s banking transition, all for the immediate preservation of the public health, peace, property, safety, and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Treasurer is hereby authorized to extend its contract with OST, Inc. through June 2, 2026, for continued IT staff augmentation services under the State of Ohio’s IT Staff Augmentation Contract.
SECTION 2. That no new funds are authorized by this ordinance and that the City Auditor is authorized to continue making payments from previously appropriated funds in the City Treasurer’s 2025 budget, subject to available appropriations.
SECTION 3. That the City Auditor is authorized to make any accounting changes necessary to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.