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.
While the contract was originally set to expire on June 2, 2025, it was extended through June 2, 2026, under Ordinance 1281-2025 without additional funding. This ordinance seeks to add $50,000 to the existing agreement with OST, Inc. to ensure sufficient resources are available to complete the documentation project critical to the success of the Treasurer’s modernization efforts.
1.1 Amount of additional funds to be expended:
Cost summary:
Original Contract, Ordinance #1464-2024 $ 150,000.00
Modification #1, Ordinance #1281-2025 $ 0.00
Modification #2, (This Ordinance) $ 50,000.00
Estimated Contract Total: $ 200,000.00
1.2 Reasons additional goods/services could not be foreseen:
The need for expanded documentation and cross-agency process analysis could not have been fully anticipated at the outset of the Treasurer’s banking transition. As the project progressed, it became clear that more detailed work was required to capture institutional knowledge and ensure consistency in implementation across City departments.
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, which remains the most efficient method to obtain specialized technical resources. The Department of Technology was consulted but was unable to provide the needed support. Engaging a new vendor would delay the project and risk duplication of effort. Continuing with OST ensures continuity of services and preserves institutional knowledge.
1.4 How cost of modification was determined:
The additional $50,000 is based on projected staff hours and billing rates for business analyst and project management resources under the State of Ohio’s IT Staff Augmentation Contract. The estimate was developed by the Treasurer’s Office, ensuring the funds align with anticipated workload to complete the documentation project.
EMERGENCY DESIGNATION:
This ordinance is submitted as an emergency to ensure uninterrupted support for the City’s documentation project tied to the banking transition. Any lapse in services could delay merchant on boarding or compromise the Treasurer’s ability to support citywide revenue collection efforts.
FISCAL IMPACT:
Funds for these expenditures are budgeted and available within the various funds’ 2025 budget appropriations.
Contract Compliance: OST, Inc., Vendor #042892, Contract Compliance #522175314, expiration 8/6/2026.
Title
To authorize the City Treasurer to modify its contract with OST, Inc., the current State of Ohio’s IT Staff Augmentation Contract provider to add additional funding; to authorize the expenditure of $50,000.00 for continued support of the City’s documentation project associated with the banking transition; and to declare an emergency. ($50,000.00)
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, to support the Treasurer’s transition of banking and merchant services to JP Morgan Chase Bank; and
WHEREAS, the contract was subsequently extended through June 2, 2026, under Ordinance 1281-2025, but no additional funding was authorized at that time; and
WHEREAS, the Treasurer’s Office has now determined that additional resources are required to complete a documentation project in support of the statewide banking transition, ensuring consistency, transparency, and long-term institutional knowledge; and
WHEREAS, OST, Inc. was originally selected under the State of Ohio’s IT Staff Augmentation Contract, which remains the most effective and efficient procurement method for obtaining the specialized technical resources needed for this work; 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, the Treasurer’s Office has determined that an additional $50,000 is necessary to fund these services and ensure continuity in documenting processes and systems across City operations; and
WHEREAS, an emergency exists in the usual daily operation of the City Treasurer’s Office in that it is immediately necessary to authorize the City Treasurer to modify its contract with OST, Inc. to add additional funding for IT staff augmentation services under the State of Ohio's IT Staff Augmentation Contract to provide internal project support for the Treasurer's banking transition from Huntington National Bank to JP Morgan Chase Bank which includes coordinating on-boarding activities across numerous City agencies, many of which use third-party software to conduct payment transactions, all for the immediate preservation of the public health, peace, property, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Treasurer is hereby authorized to modify its contract with OST, Inc. for IT staff augmentation services under the State of Ohio’s IT Staff Augmentation Contract to add additional funding in the amount of $50,000.00.
SECTION 2. That the expenditure of $50,000.00 or so much thereof as may be necessary in regard to the action authorized in Section 1 is hereby authorized and approved, to be paid from the City Treasurer’s budget as per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 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.