Explanation
This ordinance authorizes a second modification of an existing contract with AED Advisers in the amount of $40,000. In May 2020, the City Auditor’s Office - Division of Income Tax, through the utilization of a Request for Proposals process (RFP015616) received (4) responses for professional services related to the Division’s compliance with IRS Publication 1075. In July 2020, the Division established a contract with AED Advisers for $20,000.00 via PO232096 to perform a thorough evaluation of the Division’s current safeguarding policies and practices in anticipation of the pending IRS on-site review. A first modification was done in September 2020 (PO241952) to extend the professional services and increase the contract amount by $67,200. AED Advisers reviewed existing documentation, conducted interviews with key Division and Department of Technology personnel, and assisted with preparation of IRS deliverables. It has been determined that there is still a need for additional professional services to fully evaluate the division’s needs and assist with extended timelines for IRS reports and submissions.
This ordinance represents modification #2 to include additional funding for an extended assessment period and an implementation period. This 2nd modification is needed to support extended timelines for IRS submissions and onsite reviews as well as internal inspection periods and managing ongoing compliance requirements. The total cost of this modification is $40,000 with a contract term of one year, commencing on July 1, 2020 and ending on June 30, 2021. This modification is critical to the success of this on-going project, which is being undertaken to ensure that the City’s safeguarding practices for federal tax information meet and exceed regulatory requirements.
1. Amount of additional funds to be expended: $40,000.00
Original contract amount (PO232096): $20,000.00
Amount of modification (1943-2020) $67,200.00
Amount of modification (0470-2021) $40,000.00
Total aggregate contract: $127,200.00
2. Reason additional goods/services could not be foreseen
This modification is needed to support further evaluation of the Division’s needs and assist with extended timelines for key IRS deliverables. It was not known at the outset of the project how many hours would be needed to complete preparation phases of the project.It is also expected that more time and resources will need to be dedicated to managing ongoing requirements than initially expected .
3. Reason other procurement processes are not used
It is not feasible to bid for an alternate service since AED Advisers initiated the project. To change providers in the middle would disrupt the project.
4. How cost of modification was determined
AED Advisers provided the Income Tax Division with a cost proposal for this renewal and phase of the project with project staff hourly rates.
EMERGENCY:
Emergency action is requested to expedite authorization of this contract in order to facilitate and maintain uninterrupted services from the supplier and so that these funds be made available at the earliest possible date and the project continues without interruption.
FISCAL IMPACT:
This ordinance authorizes modification #2 of the original contract for an additional $40,000.00 for the continuation of professional services. These funds are budgeted and available in the Income Tax Division’s 2021 operating budget for this purpose.
CONTRACT COMPLIANCE NUMBER:
Vendor: AED Advisers, LLC CC#: 33027 Expiration Date: 7/8/2022
(DAX Vendor Account #: 033027)
Title
To authorize the City Auditor to amend a contract with AED Advisers, LLC for the continuation of professional services associated with the review of existing policies and procedures supporting the City’s compliance with IRS Publication 1075; to authorize the expenditure of $40,000.00 from the Income Tax Division operating fund; and to declare an emergency. ($40,000.00)
Body
WHEREAS, in July of 2020, the Income Tax Division entered into contract with AED Advisers, LLC, for an evaluation of the City’s existing policies and procedures for the handling of federal tax information; and
WHEREAS, the initial phase of the project, as well as the first modification must be extended and additional funds are needed to continue professional services associated with this project; and
WHEREAS, modification #2 is needed to provide additional funds for professional services totaling $40,000 for a term of one year, commencing on July 1, 2020 and ending June 30, 2021; and
WHEREAS, an emergency exists in the usual daily operations of the Division of Income Tax in that it is immediately necessary to authorize the City Auditor to modify a contract with AED Advisers for the continuation of professional services associated with this project, 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 Auditor be and is hereby authorized to modify a contract with AED Advisers, LLC for the continuation of professional services associated with the evaluation of the City’s existing policies and procedures for the handling of federal tax information in the amount of $40,000.00 for a term of one year, commencing on July 1, 2020 and ending on June 30, 2021.
SECTION 2. That the expenditure of $40,000, or so much thereof as may be necessary, be and is hereby authorized for the above-mentioned purpose as is follows: Dept./Div. 22-02| Fund 1000 | Sub-fund: 100010| Object Class: 03| Main Account: 63050| Program: CW001 | Amount: 40,000.00|
SECTION 3: That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4: That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5: 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.