Explanation
BACKGROUND: This ordinance is for the option to purchase Hewlett Packard Equipment and Services for the Department of Technology. The contract will be used to maintain, repair and upgrade the City's HP server environment. The term of the proposed option contract would be approximately three (3) years, with the option to extend the contract for one (1) additional one-year period if mutually agreed upon. The Contract is through June 30, 2015. The Purchasing Office opened formal bids on April 26, 2012.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06, Solicitation SA004327. Two-hundred Sixty (260) bids were solicited (MBR: 5; F1: 7). One (1) bid was received.
The lone bidder, while compliant with the technical specifications, was rejected because they submitted exceptions to the City's Standard Terms and Conditions. The Purchasing Office informally reconsidered the bid. After consulting the City Attorney's Office, the Purchasing Office entered into negotiations with the bidder. An acceptable agreement resulted. A contract will now be established with OnX USA, LLC, as the lowest and best bidder.
The Purchasing Office is recommending award of the contract to the lowest and best bidder:
OnX USA, LLC, CC#271445264 (Expires October 11, 2013); All Items, $1.00
Total Estimated Annual Expenditure: $150,000.00
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
This ordinance is being submitted as an emergency because, without emergency action, needed repairs to HP servers could be delayed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Mail, Print Services and UTC Fund. The various City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to enter into a UTC contract for the option to purchase Hewlett Packard Equipment and Services with OnX USA, LLC; to authorize the expenditure of one (1) dollar to establish the contracts from the Mail, Print Services and UTC Fund; to waive the competitive bidding provisions, and to declare an emergency. ($1.00).
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on April 26, 2012 and selected the lowest, responsive, responsible and best bids; and
WHEREAS, the lone bid were deemed non-responsive and the City conducted negotiations after considering the bid on an informal basis, and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, the HP Equipment and Services UTC will be used by the Department of Technology to maintain, repair and upgrade the City's server environment, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to enter into one (1) contract for an option to purchase the HP Equipment and Services to ensure the uninterrupted supply of materials and services, thereby preserving 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 Finance and Management Director be and is hereby authorized to enter into the following contract for the option to purchase Hewlett Packard Equipment and Services for the term ending June 30, 2015, with the option to extend the contracts for one (1) additional one-year period if mutually agreed upon, in accordance with Solicitation No. SA004327 as follows:
OnX USA, LLC; All items, Amount: $1.00
SECTION 2. That the expenditure of $1.00 is hereby authorized from the Mail, Print Services and UTC Fund, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving and does hereby waive Section 329.06 (Formal Competitive Bidding) of the Columbus City Codes.
SECTION 4. That for the reason stated in the preamble here to, 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.